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Capacity constraints a challenge in high-growth market

14 Oct 2021 - by Liesl Venter
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High cargo demand in North America is paving the way for CFR Freight to expand its LCL import service with the addition of a second direct service offering out of the Midwest.According to trade manager Michelle Horner, positive growth in cargo volumes for both imports and exports is set to continue in the Americas where the neutral consolidator holds solid partnerships and networks.“In North America our partners, Shipco Transport, have an extensive intermodal and CFS network, complementing their diverse presence of offices, enabling us to provide full coverage of the country,” said Horner. “On the South American side our network allows for f lexibility of cargo routings, which is essential in these unprecedented times. Flexibility of services, cargo routings and loadings sees us working closely with our customers, enabling extensive opportunities for the movement of LCL cargo out of South America into South Africa, as well as transhipment and over-border movement into Africa.”According to Nicholas von Flemming, national sales manager, it is not just on the LCL side that growth is evident. “We see growth in some other non-traditional LCL markets in the Americas. This will form a key part of the 2022 strategic outlook for the group to strengthen its hold on the LCL market in the area,” he told Freight News.Both Horner and Von Flemming say they have seen increasing challenges in the Americas region. “From reduced manpower in terminals due to Covid-19, and critical truck driver shortages, to port congestion and equipment and transport constraints, it has been a challenging year,” said Horner. “The excessively high cargo volumes in North America, along with severe capacity constraints within both the shipping lines and intermodal providers, have resulted in heavy delays of cargo and congestion in terminals and container freight stations. As capacity becomes tighter, we see volatility in the freight rates and ancillary charges. This from a previously very stable reg ion.”In South America, manpower restrictions, carrier scheduling and service changes, blank sailings and high cargo demand have also resulted in delays and extended transit times.“For South African exports into the Americas, high volumes, port congestion and carrier scheduling changes have also seen extended transit times for cargo movement. Recently, we have also seen severe weather and storms impacting North America, negatively affecting already constrained operations.”Von Flemming said the methodology for dealing with the challenges facing the logistics industry was the optimisation of information f low by means of weekly market updates.Said Horner, “As the use of technology increases, there is a surge of online purchasing, leading to an increase in goods and cargo movement. Customers are looking for fast, efficient and reliable end-to-end solutions.”An ongoing trend in the Americas is an increased focus on accessibility of information – an essential part of any logistics operator’s service offering. “Constant developments in online platforms are necessary to progress towards keeping clients informed at all times.”We see growth in some non-traditional LCL markets in the Americas.– Nicholas von Flemming “

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The Americas October 2021

View PDF
Delays likely to continue well into 2022
14 Oct 2021
Screening challenges put further squeeze on timelines
14 Oct 2021
Capacity constraints a challenge in high-growth market
14 Oct 2021

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