Shipping line plugs a gap on China – Luanda route

KEVIN MAYHEW THE BUSINESS value of the African market has prompted at least one major shipping line to introduce a direct service from China to Luanda to meet the needs of its booming petro-dollar and diamonds economy. This could have a major effect on Far East trade passing through South Africa for onward shipment to Angolan buyers. “It stands to reason that it will be cheaper for Angolan retailers to deal directly with Chinese manufacturers rather than having to deal with intermediaries landing goods in South Africa and then selling on. All the South African charges and duties will not be factored into the final price,” says the managing director of Mondeo Express Freight, Gavin Toerien. Nature of production Toerien says that the nature of production and distribution in the Far East makes it difficult to ascertain exactly where in the region the products that are imported from countries outside of China originate – as much of it is in fact manufactured in China and then merely shipped out of the ports of other countries. “The bill of lading says one thing, but the reality of the situation is another. The competitiveness of the Chinese makes them attractive as manufacturers to even those other supposedly cheap neighbours. They do not compete but feed off Chinese capacity,” he said. Mondeo moves anything from T-shirts to fertiliser and a lot of furniture from China at present, says Toerien. Referring to India, he adds that they are seeing growth particularly in accessories such as handbags and the traditional Indian products like yarn. “We have the contract to move products for a major local manufacturer of school blazers and jerseys and this has helped us to grow our imports from this economic giant,” he said.