‘Unique’ circumstances provide positive benefits for SA’

After years of spectacular growth, restrained only by its ability to find additional vessels, Maritime Carrier Shipping (Macs) is reaping the benefits of its sound financial decisions. “There was a lot of pressure from marketing to get additional ships,” managing director Felix Scheder-Bieschin told FTW. “We resisted that pressure because we would have had to enter into very expensive charters which would now hurt us very badly.” The world has entered a very critical period, says Scheder-Bieschin. “We’re not sure whether there will be a worldwide recession. We have seen the shipping market falling off a cliff in the past three months and that applies to container and general cargo ships. Because we are active in both markets we will also be affected.” But South Africa has the benefit of distance from the major centres. “Things tend to happen a bit later so people are better prepared. And in addition we don’t have a banking crisis. “All those who were critical of strong regulation of banks – including myself – must eat their words because the strong regulation has prevented local banks from the vulnerability of their global counterparts.” An additional factor in South Africa’s favour is the Soccer World Cup boom. “We may therefore be kept going by our unique circumstances and also by the enthusiasm and investment in the soccer. There’s some concern about the economy after 2010, but hopefully by then the world economy will be in better condition.” In the interim, however, shrinking consumer markets will negatively affect shipping. “You now have a big surplus of container ships, with megaships still being launched. And with the increase in costs because of the shortage of crew, the pressure to consolidate is high.” Macs, along with several other industry commentators, sees challenges as opportunities. “It’s now possible to get ships at reasonable rates so we will certainly be looking around. We have been conservative with our investments and are very healthy and can therefore look at new opportunities.” Macs was launched 30 years ago, with its first service on the SA trade in 1980 deploying three SD14 tweendeckers and a freedom-type vessel, calling Rotterdam, Hamburg, Antwerp, Cape Town and Durban. It is now a major player on the multi-purpose SA–Europe route where project cargo has pushed demand for capacity. Its GAL service on the US route was launched in 1998 with an East Africa service coming on stream last year. And while South Africa’s port productivity is not quite where Scheder-Bieschin would like it to be, he believes stable management has played a positive role in improved performance. “But I would welcome more private investment and competition. We are not Singapore which has a very successful staterun port. We need private enterprise to keep the parastatals on their toes.”