The SACO CFR team has kicked off 2023 in a brand-new facility in Cape Town.According to Jacob Pretorius, general manager for airfreight, this was motivated by the need for more space.“The facility is bigger and now allows us the opportunity to expand our service offering in Cape Town,” he told Freight News. “We are very excited about this move and the potential it holds for our business. We believe it will allow us to service our customers better.”The facility is situated close to the Cape Town International Airport.Pretorius said expanding the company’s airfreight business in the Western Cape was a top priority for 2023.“At the moment, 2023 is still a bit of an unknown. Forecasts are difficult to make in these uncertain times. Trends indicate that volumes are dropping but capacity is growing. We are hoping this will bring down the cost of freight this year, but it is very much a wait-and-see game.”From a product perspective, Pretorius said there was an ongoing need from clients for reliable services matched with competitive rates.“As such, we are always looking at where we can improve our consolidation products. Putting Block Space Agreements (BSAs) in place is critical to meet both requirements. However, with the volatility in volume, this does carry a risk from a financial perspective.”According to Pretorius, volumes are on the decrease and monitoring the situation is critical. “People have less money to spend due to the cost of living rising. Ocean freight rates have also come down a lot over the last few months.”With capacity in the ocean sector also improving ,and sailing schedules becoming more regular, shippers are opting for sea freight again. “Feedback from our clients shows that importers and exporters are opting for LCL or FCL options due to the difference in rate levels. This is, of course, directly impacting the volumes we move by air.”He said the market at present was extremely competitive. “Taking our context into account and the fact that we work with freight forwarders all around the world, we can definitely see the small to medium-sized forwarders competing against some of the bigger names. This means even more competition in the market.”Pretorius said exports still remained the major contributor at SACO CFR. “Many small to medium-sized freight forwarders belong to networks which drive them to use their own networks. As for challenges, I believe that communication remains one of the biggest. Many other post-Covid challenges have been ironed out over the last couple of years, but poor communication continues to lead to many frustrations. We are continuously working on improving in this department.”
