SACO CFR has launched a direct weekly service from Port Kelang in Malaysia to Durban and is continuing to develop its direct Vietnam service, with weekly sailings from both Ho Chi Minh City and Haiphong into Durban.According to Kreeson Moodley, trade coordinator for Asia-Pacific (Apac) imports, this is because many importers are looking to source inventory from alternative suppliers as the strict Covid policies in China continue to impact supply chains. “There has been a shift from Chinese markets to South-East Asia and the Indian subcontinent,” he said. “To support our customers, SACO CFR has expanded its service offerings. We are also developing our current India service and this will see the reinstatement of our direct weekly sailing from Nhava Sheva into Port Elizabeth.”According to SACO CFR trade manager Michelle Horner, globally, the logistics industry remains in a constant state of change. “The new norm is that there is no normal,” she told Freight News. “Customers’ needs change and service providers’ offerings transform as market demands shift. SACO CFR, in partnership with our customers and partners, maintains a f luidity in our product offerings, shifting and developing our LCL consolidation services to provide f lexibility in the ever-changing market.”One of the biggest factors in the Far East has been China’s “zero-Covid policy” this past year. “It has specifically caused several regions and cities in the country to lock down completely once positive cases of Covid-19 are reported. Trucking services are impacted as restrictions are enforced to limit travel between districts. This has severely disrupted supply chains and delayed the movement of cargo,” said Moodley, indicating that there had been a marked decrease in global demand for goods out of the Far East.“In view of the reduced demand, carrier freight pricing has softened over the past few months. South Africa has not seen the traditional peak season volume surge this year, and as a result, carriers are blanking sailings or cascading schedules to boost the exigency for space. The blanked sailings and adjusted schedules do result in delays, leading to extended lead times for cargo movement.”Another development that has impacted has been the decision by carriers to impose more strict conditions and requirements for the acceptance of hazardous cargo. “Lithium-ion batteries out of China, in particular, are a commodity that is problematic in terms of shipping line requirements and handling, which may create delays for ocean movement,” explained Moodley.According to Mark Naidoo, trade coordinator for exports, South African export services have also been experiencing some challenges with capacity on the eastbound services. “The schedule irregularity, as seen on the import voyages, is impacting outbound services. LCL remains a cost-effective and efficient alternative during times when capacity is a concern. The carrier requirements with regard to DG cargo has impacted lead times on export shipments, especially with vessel-sharing agreements,” he said.On a positive note, South African wine exports into the Far East have been on the increase, leading SACO CFR and ZacPak to launch a specialised wine service out of Cape To w n .Both Moodley and Naidoo agree that LCL consolidation continues to provide importers and exporters with a cost-effective solution for the movement of cargo. “As the global focus continues to shift across the Far East, diversification of LCL direct loading options for South African imports remains an essential focus for us,” said Mood ley.“End-to-end solutions are important for our customers. LCL door delivery services and final-mile handling are key value-adds for South African export customers.” added Naidoo.
