Despite difficult market
conditions, mineral export
volumes performed relatively
well, according to Safmarine’s
Gauteng-based commodity
manager, Steve Simpson.
While liftings were below
expectations, Simpson believes
the line’s mineral export
customers have done relatively
well in a market that’s been
weak, experienced low demand
compared to 2011 and was
severely impacted by the labour
disputes at South African mines.
He says Safmarine, on the back
of strong demand from Asia and
Europe at the beginning of the
year, had hoped to significantly
increase its mineral export liftings
in 2012.
“But the goal turned out a
difficult one to achieve, especially
post-April, when we saw a
considerable drop in demand.
The market remained soft until
November and, even when
demand picked up towards the
end of the year, remained low
compared to previous years.”
Considering these challenges,
Simpson says it became even
more important for Safmarine, in
2012, to find win-win solutions.
“Profitability has been a key
issue for us this year. After the
container shipping industry’s
much-publicised losses in 2011, it
was important that our customers
understood why we needed to
achieve a reasonable return on our
shipments.
“In return, we’ve helped our
customers grow their business by
ensuring they have the equipment
and market level rates they need
to compete in a challenging
economic environment. For
example, those customers who
shared our partnership-minded
approach to business benefited
from having access to equipment
when high demand led to a
shortage of 20-foot export boxes.
We also worked with them to find
ways of maximising the potential
of other South African ports
when they were impacted by the
upgrades at the Durban Container
Terminal,” he said.
CAPTION
Steve Simpson … ‘Profitability has
been a key issue for us this year.’
