Consistently high European LCL volumes – both for imports and exports – highlight the importance of this market for South African trade.That’s according to Michelle Horner, trade manager at SACO CFR, who told Freight News that while freight pricing in the European market had traditionally been stable, there had been some significant increases over the past few months – as well as a variety of surcharges introduced by shipping lines.“Increased pricing, constrained vessel capacity, and equipment challenges have allowed LCL consolidation to be the welcome solution to cargo movement for all importers and exporters to Europe, which remains a core trade partner with South Africa.”She said that in the current environment it was critical to provide sustainable and workable solutions. SACO CFR services the entire United Kingdom, Western and Eastern Europe, Scandinavia and Mediterranean regions.Sea freight delays“Vessel capacity and port congestion, as we are seeing around the globe, are by far the biggest challenge at present, and have an impact on cargo movement and schedule reliability. Delays are being experienced on all European trades, as vessel transit times are compromised through port delays,” said Horner. “Carrier services into and out of South Africa are also limited – and to maintain our LCL loading schedule integ r it y, strong partnerships with core carriers are essential. As a consolidator, f lexibility is increasingly important to our clients – and offering services out of all main European hubs into all South African destinations gives freight forwarders viable routing alternatives for their customers.”Commenting on the current Russia/Ukraine war, she said services to and from the region had been suspended. “Shipments in transit to these areas are being held at various hubs across Europe.”Furthermore, Europe was seeing significant fuel price increases, and this was affecting costs along the supply chain, from local cargo delivery and pick-up costs, to container movements and bunker pricing, she added.“The challenges to the logistics industry in Europe and globally look set to continue for the foreseeable f uture,” said Horner. “Maintaining a strong bedrock of services and partnerships is essential in these times.”Better air cargo rates According to Stephen Bishop, SACO CFR airfreight director, space is becoming available again and carriers are offering better rates for consolidated cargo into South Africa. With a network of over 30 agents in Europe as part of the AirCargoGroup, SACO CFR can offer ex-works (EXW) and delivered at place (DAP) services to most of Europe. “Also, as we are now a part of the SACO group, we have access to much better buying power within Europe,” he said.Route developer Megan Ekermans said the company had increased its airfreight allotments on a few key trade lanes into Europe. “Our German and United Kingdom consolidations have been strengthened, with several options each week to give clients the f lexibility to meet their needs. We have also enhanced our import products from Italy, Belgium, the Netherlands, France and Spain to coincide with a promotion we are running for April.”She said export volumes had increased since the beginning of the year, and there had been a notable increase in demand for air import solutions from Europe, with the continent now moving out of winter.
