Port delays add to lines' woes
SHIPPING LINES on the Far East route are taking strain from all directions.
A drop-off in Asian imports and a growth in exports from the region are adding considerable pressure to the traditional trade imbalance on the route. Add to that the recent crippling delays in the Port of Durban, and shipowners are reeling under the pressure of additional costs.
There's been a definite increase in imports, says CSAV liner executive at agents Combine Ocean, Stephen Bell.
Importers can buy cheaper from most Far East destinations - Indonesia, Korea and Malaysia in particular - even Japan.
An imbalance in trade has always been one of the major problems on the route, but now it's been blown out of all proportion and lines are having to subsidise the empty leg, says Bell.
CSAV is one of the partners in the Good Hope Express consortium which offers a weekly frequency on the SA - Far East - South America route.
But that weekly frequency is at the mercy of the elements and trade unions which have been playing havoc with schedules in Durban since late April.
A lot of shipping lines have been looking at Port Elizabeth and East London. We can't afford to wait five days to berth at $15 000 a day.
If you take delays out of the equation, GEX provides the perfect service, says Bell. And while a 12-24 hour delay can be made up by speeding up the vessels, when it gets to five days, as has been the case recently, it's impossible.
To add to the lines' woes rates have shown little upward movement. We see them levelling off and in some cases even decreasing.
In today's competitive shipping market, Bell believes that the single factor which differentiates one line from another is the landside service to the client.
It's the logistics back-up before and after the sea leg that really matters.
