Three direct groupage services from India

India along with China is fast gaining a foothold on the African continent, with a lot of cargo transhipping in South Africa for the likes of Zimbabwe and Zambia. “The Europeans have to a large extent lost out and we see huge growth potential on this trade lane,” says Martin Keck, managing director of independent groupage operator CFR Freight. “We are essentially a mirror of the economy and are therefore importing far more than we are exporting on this route, which means that we offer a larger number of direct import services than we do direct export options,” Keck told FTW. On the Indian route CFR offers direct services from Delhi, Mumbai and Chennai, as well as a direct option from Mumbai to Cape Town. All exports are moved via Singapore because export volumes to India don’t justify a direct routing. The Middle East, on the other hand, is one of the rare exceptions where the opposite applies – direct export services but no direct import services. “We offer direct consolidations every two weeks to Dubai and from Dubai we serve the whole region – Oman, Kuwait, Iran and Iraq,” said Keck. The company also offers a direct option to Israel, but all imports from the Middle East would move via Singapore or sometimes Europe. CFR is however keen to promote a more regular import service from the Middle East, hubbing in Dubai. “We were very close to introducing it when global economics played a trick on us,” said Keck. Dubai as a hub for SA-bound cargo is still very much on our planning boards,” he told FTW. While transport links on the routes are more than adequate at present – competitively served both by air and sea – customs red tape in these regions is an issue that challenges shippers and service providers. LCL operators are clearly in a better position than freight forwarders in these reccesive times – with shippers choosing to ship smaller quantities more often to save on inventory – but profitability remains an issue of contention, says Keck. And it will take a long time before rates are restored to profitable levels. “Volumes may increase, but you can’t just hike rates – that will take much longer. “And we’re not only talking of freight rates. A number of operators have dropped their pens on local freight rates – documentation fees, customs clearing fees and the like – and that won’t change in a hurry.” Despite the challenges, both regions hold enormous promise, says Keck, but India is a market to watch – with growth in the region of 10% recorded year on year and more of the same expected as the ‘green shoots’ start taking root.