The worldwide downturn in cargo volumes has seen rate reductions becoming more prevalent. At the same time, recent announcements that shipping lines are proposing rate increases of $500.00/$1,000.00 for 20’ and 40’ containers from the Far East, respectively, has caused volatility in the shipping industry. Rates from the Far East have been very low for the past few years, so these proposed increases are not surprising. The ripple effect, however, will see LCL rates increasing. As such, we must emphasize the importance of the importer taking control of their LCL freighting requirements. Recently, one of our customers allowed their supplier to handle the freight of a 1.7cbm shipment, “because their freight rate was better”. The result was that the supplier’s local agent charged R9,800.00 for destination charges which was highly inflated.
In contrast, LCL rates from the USA have softened, which may have some implications in importers’ buying patterns. For example, if the freight rate is ‘a deal breaker’ for the importer, you may see them weighing up their options as to where they will source in future. Fortunately, our partners, Carotrans USA, have been proactive in on-forwarding these LCL rates to our customers.
There have been some staff changes at Carotrans. Michael Forkenbrock, a regular visitor to South Africa, has taken on a new role within the group. He has been replaced by Joe Zeno as National Sales Director who will be responsible for South Africa trade-lane development.
Chris Wilson has been appointed as Vice President Sales for Carotrans, having recently completed a 3-year stint in Europe as Carotrans Owners Representative.
Import volumes into South Africa have been negatively affected owing to declining market circumstances, coupled with the volatility of SA Rand. Fortunately, in the past few months we have seen the Rand strengthen somewhat against major currencies, which should see an upturn in imports, if it stabilizes. With the Christmas season rapidly approaching and the stronger SA Rand, we have seen more enquiries for quotes resulting in business.
USA Freight Forwarders, in partnership with Carotrans USA, continue to offer a weekly LCL/FCL service into all major ports in South Africa.