Squeezed margins force container operators to pump up efficiency

SHIPPING LINES in general are under heavy pressure, many going through bad times, and this is reflecting on the container operators everywhere, says Cargo Management Centre m.d. Richard Foulds.
But the upside of the situation is that these circumstances are demanding that service companies be better organised, well run and employ the right equipment, he says.
Things are running smoothly for us at present, although volumes in general are down right now. We find that shipping lines are looking for the best rates. Their turnaround times have shortened as a result and we, in turn, have to take a hard look at all expenses. We have a duty to bring costs to a minimum without being negative.
At the same time to provide efficiency of service we are committed to investing in our facilities and each year has brought a new phase of investment.
During 1997 CMC opened up its reefer section and is now having cold rooms installed in one of its Durban warehouses which it hopes to have up and running in the course of the next few months.
Then there is the updatiung of computer systems which is ongoing, giving an electronic transfer of tracking reports. It is this type of benefit to the client that is so important, says Foulds.
When you look at costs there is no way in which the ever-increasing rentals, the equipment costs and the wage increases can be passed on to the client. So that means gearing up to greater efficiency, and that is something the industry as a whole must accept.