SA importers take advantage of weaker dollar

After what has been
described as the worst
economic downturn since the
Great Depression, volumes
from the USA are slowly
returning to 2008 levels, says
Alistair Heald, sales director
of World Cargo Services
(previously WGS).
“The general market
consensus for 2010 was for
an even stronger focus on
the East with more cargo
being sourced from that
area. The USA, which had
been experiencing a severe
recession, was finding itself
in a situation where the
US dollar was depreciating
against all major and even
emerging currencies such
as the rand,” says Heald.
“From this background
US manufacturers started
focusing a lot more on the
international market and
SA importers have taken
advantage of the weaker US
dollar. We are now seeing
a real increase in volumes
returning to 2008 levels and
beyond, particularly in high
tech and high value products
from chemicals to mining
equipment.”
Along with that US
suppliers’ response time to
international enquiries has
also been addressed and
is now treated with more
urgency and competitiveness.
According to Heald
the turning tide was fully
realised in September when
volumes at World Cargo
Services equalled those
of 2008. “On groupage,
we closed fully utilised 40
containers weekly from Los
Angeles, Atlanta, Charleston,
Chicago and New Jersey
into South Africa. This trend
was similarly felt in the FCL
imports, which have now
surpassed previous volumes.”
Heald says while 2010
was intended to be a year
for focusing on the East,
expansion led to the company
being able to handle the
increased USA volumes as
well.
“What is now very
evident in the market, is
competitiveness, from that
between shipping lines
to freight forwarders. A
recession always brings with
it downscaling, cost cutting
and re-evaluating every
aspect of costs,” he says.
“Freight costs have come
under the microscope and
importers request breakdown
quotes prior to most
shipments.”
According to Heald 2010
has also been a year for
developing relationships
further. “CaroTrans, our
partner of 16 years in the
USA, is now also our partner
in China and Australia.
With roots in the USA, they
are a truly global groupage
NVOCC operator, serving
140 countries and 240 ports
worldwide.”
Airfreight imports
from the USA have been
challenged over the past
few months by a lack of
space availability on SAA
flights, says Heald. “While
the reasons given are varied,
the feedback given to
customers by freight agents
has generally been poor. This
has highlighted a largely
monopolised market and
allowed more competition
from service-orientated
airfreight forwarders also
offering alternative airline
options. World Cargo’s USA
airfreight product has grown
substantially in 2010 and we
see further growth in 2011.”
He says the company’s
strength in the USA is best
reflected in its numerous
receiving stations. This
extensive network of
experienced international
personnel in these CFS
stations enables customers to
benefit from a reduction in
transport costs within North
America, improved transit
times.