Stringent adherence to regulations critical in US market

Cargo volumes from the USA have picked up significantly since the 2008/9 recession, but have yet to regain the full momentum of the boom years, says Colin Atkins, managing director of World Cargo Services (WCS). “Many of the USAbased commodity products are now manufactured in the East at lower cost and the technology is transferred to these production-competitive areas. Certain higher value products like machinery and speciality chemicals will however always be sourced from the USA making it a sustainable market.” Atkins says with the competition and low margins for NVOs operating in the East, more companies are trying to enter the USA market, attempting to gain market share through price slashing, some even at cost on origin and ocean freight rates. “The USA, however, is a mature market with a sophisticated internal transport network and stringent documentation regulations. Errors in declaration and filing are heavily penalised, with both the freight forwarder and importer being held accountable – and fines are severe,” he explained. “Consignees are warned of cut-throat pricing, where they may short-cut regulations, only to bear the consequences later and possibly even be banned from further dealings in the USA.” WCS has serviced this market since 1991 with its global partner CaroTrans, which originates from the USA. “We have built up extensive experience in all aspects of cargo handling from LCL, FCL to breakbulk and OOG. We have offices and receiving stations throughout the USA and can offer comprehenisve weekly services into Johannesburg, Durban and Cape Town.” In fact, says Atkins, with the devastating effects of Hurricane Sandy still being felt on the US East coast, all its facilities were only closed for two days and full capacity was quickly restored. “Earlier this year we also started a weekly service from Charleston, which complements our existing routes and offers a good export base from the south eastern areas like Mississippi, Atlanta through to Charlotte and Norfolk. The later departure sailing is an attractive offer, but also provides further options for consolidation and of course equipment availability,” he said. WCS is now concentrating future growth on building trade with all BRIC countries with services set to be expanded to South America in the very near future. CAPTION Colin Atkins … ‘cargo volumes picking up.’