Reduction in capacity and delays due to reduced sailings, particularly during peak times, remain some of the biggest challenges in trade with the Far East. According to Paul Lawrence, managing director of Tigers, the volatile nature of freight rates that change almost every two weeks has only added fuel to the fire, making financial planning and costings extremely difficult for traders. But, said Lawrence, despite these challenges volumes continued to grow year-onyear with the overall outlook very positive. “The growth is mainly due to new business that we have won, as well as increased volumes from some of our existing clients. We have also started to consider handling freight requirements from the Far East for our existing logistics clients.” According to Laura Crow, managing director of Tigers China, the outlook across the Far East for 2019 is challenging but positive. “US tariffs and Brexit are creating uncertainty and driving our customers to reconsider their supply chains to ensure they are flexible and robust enough to remain competitive in a changing market,” she said. Crow said domestic consumption in China was driving demand for South African commodities, including perishables and wine. “IGD (an international grocery research organisation) predicts that the Chinese grocery market will grow by 32.6% by 2022,” she said. “This in turn is driving growth in our trading and logistics functions and demand for local registration support and eSolutions.” According to Crow demand is also expanding throughout China – with e-commerce driving consumption and a demand for cross-border and final-mile solutions. It is, however, not just restricted to China but across Asia. There was growth and opportunity in the South East Asian (SEA) countries, said RS Baskkaran, managing director of Tigers Malaysia and South East Asia (SEA), “The outlook for Malaysia in particular is very positive and new investment is expected to flow in,” he said. “Malaysia will be one of the preferred partners for investors, trade opportunities, and for the digital economy. The Malaysian market is expected to grow significantly in the coming years.” According to Lawrence efforts are ongoing to introduce South African products to the Chinese market with the Tigers eShop assisting in this regard. In Malaysia, said Baskkaran, Tigers had introduced e-commerce logistics services with a marketplace payment gateway, fulfilment, and last mile delivery. “Likewise, return management and COD services are considered as unique features in the industry. Tigers is setting a very strong foundation for the future of the digital economy in this region,” he said.
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Domestic consumption in China is driving demand for South African commodities including perishables and wine. – Laura Crow
