Spike in business to Harare predicted

Groupage business on the Jo’burg to Zimbabwe route has been steady in 2012. However, an expected upswing in freight traffic will mean even stiffer competition on the already highly competitive Zim route. Expect an industry shake-up in which bargainhunting customers should be wary of cut-rate deals, says Warren Jayes, a co-owner of Leo Shipping. “Shippers are looking for fast and prompt dispatch to Zimbabwe. We still think we offer very competitive rates, but of course companies are going to battle for more work and some are going to cut rates,” said Jayes. “The bottom line for shippers is that consolidators who cut rates have to make it up by cutting elsewhere. When their trucks break down they often don’t have money to fix them. This leaves their customers stranded,” cautions Jayes, whose firm also serves Beira, Zambia and the DRC. Jayes told FTW that his trucks were moving consolidated loads at last year’s rate of three consolidations weekly. The pace is expected to pick up soon, however. “It’s been a slow start for forwarders so far this year, but there is always a need for consolidations. By mid-year we expect to be loading five trucks a week. We have closed eight-ton trucks and 29- and 34-tonne open trucks doing the route, but we don’t wait until the 28 tonner fills to go. We’ll use a smaller truck. The main competitive factor amongst consolidators is transit time – from the shipping go-ahead to the dispatch of goods to arrival in Zimbabwe,” Jayes said. Leo Shipping maintains a warehouse in Harare where some customers come to collect their goods, while others receive doorto- door service. “I expect consolidations to Zimbabwe to increase dramatically this year. Full loads have been reduced for many customers in the first half of this year. When the Zim customers cannot afford to bring a full load in, they do consolidations. We’ve been doing the route for 12 years now and we’ve seen an increase of consolidation work over the past four years. Because manufacturers in Zimbabwe require certain imported manufactured finished items for their products, and wholesalers deal directly with South African manufacturers, it will remain a very competitive shipping route from South Africa,” Jayes predicts. Caption: Warren Jayes ... ‘Transit time the competitive factor.’