A decision to launch a clearing and forwarding division in 2021 was a good move for SA Cargo Services who are seeing this new initiative going from strength to strength.According to Hans Modipane, executive – logistics, sales and marketing, the decision was taken after identifying a niche market of relatively new companies that were increasingly becoming dependent on international raw materials and components for their business.“Adding clearing and forwarding to our portfolio was therefore a natural next step for our company as it allows us to further complement our current service offering, which already includes transportation, warehousing, back and front of port logistics as well as stevedoring,” Modipane told Freight News. “Offering an end-to-end and integrated supply chain management service that includes clearing and forwarding has really upped our service offering to our clients.”Expanding one’s business offering during a pandemic, however, is no easy undertaking, especially if one considers the ongoing global supply chain challenges that exist. “It has shown the importance of visibility and the need to have access to a trusted network of partners who can provide both local and international expertise,” said Modipane. “During tough times, it is often key collaborations with commercial partners and regulators that deliver improved customer experiences.”He said in its negotiations with clients it had become clear that SA Cargo Services needed to expand its offering.“Customers are looking for end-to-end solutions which are supported by technology, allowing for 24/7 information f low and visibility. Technology improves efficiencies and communication, allowing for a smoother customer experience.”According to Themba Ngcobo, SA Cargo Services chief executive, over the past few years the company has opted for a market-driven strategy by understanding customer needs within their sector. “By listening to the challenges faced by our customers, we have been able to provide them with unique, long-lasting solutions. This demand-led strategy enables us to anticipate customer trends and needs and build mutually beneficial value propositions. A case in point, illustrating our end-to-end supply chain management capabilities, is the recent ex-works handling of an LPG tanker import from Turkey to our warehouse in Durban for a newly established and wholly black-owned energy company, Ruma Energies. The expansion into this space and further diversification of the company has allowed us to form new commercial partnerships, while most importantly nurturing the unique and diverse talent that exists within the SA Cargo Services family.”Ruma Energies founder and director, Mxolisi Ntshangase, had no qualms about using SA Cargo Service’s newly launched clearing and forwarding division for the import of the tanker.“Our relationship with SA Cargo Services goes a long way back,” he told Freight News. “We are first-time importers and basically SA Cargo Services handled everything for us – from paying the supplier on our behalf to clearing and storage. We have received excellent service and like to think we have established a partner in our business that will walk the journey of growth with us into the f uture.”Already plans are on the cards for the import of more tankers in the near future, while SA Cargo Services is also set to assist the company with the export handling of LPG into Harare in Zimbabwe.Modipane said they were also working closely with an up-and-coming company in the energy sector and were handling the import of smart electricity meters from China into South Africa for this business.The plan is to grow the clearing and forwarding division as much as possible. “Given the ongoing capacity challenges, especially in the carrier shipping space, in 2022 we expect importers and exporters to continue to be faced with booking uncertainty, coupled with higher freight rates. This will continue to lead to cargo delays and inefficient supply chains. Although this outlook seems somewhat challenging, the positive for SA Cargo Services is that we are not yet cost and structure heavy, thus allowing the agility to be able to continue to offer tailor-made products and services,” he said. “This f lexibility gives us an advantage over larger competitors who are already invested in some of the main challenging trade routes where they now, additionally, must compete with the shipping lines themselves.“The reality is that the “pie has shrunk” due to the diversification of services by the traditional shipping lines, However, another view is that the pandemic seems to be waning and volumes are beginning to return to normal. It is companies that can reposition and reinvent themselves that will be able to ride the wave.”
