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PROFILE - BRAZIL - 1 FEB 2009
Updated - end January 2009
SHIPPING SERVICES
Safmarine offers the following services to/from South America:
• L-Class Service - North Europe & Mediterranean
• Samba Service - Middle East ports
• Wasadi Service - West Africa
• Asas Service - South Africa and Far East.
Port coverage/changes in South America:
Port calls:
• Santos, Paranaguá, Vitória, Rio Grande, Pecem, Itajai/São Francisco do Sul in Brasil..
• Montevideo in Uruguay.
• Buenos Aires in Argentina.
• We also cover Asuncion (Paraguay) via Buenos Aires and Patagonia area via Buenos Aires
• Expansion plans under analysis to also cover Manaus and Suape regions (mainly import cargo)
General:
- Port call/rotation changes have been made in order to reduce operational constraints previously faced by the trade - and to accommodate the peak export fruit seasons starting from Argentina and shifting to Brazil later in the year.
• Safmarine also offers improved coverage of the North West Continent following the inclusion of Algeciras, Rotterdam, Thamesport and Bremerhaven on the main South America - Europe service (L-Class).
• Because of the number of services available, Safmarine can deliver a constant, quality service to reefer shippers. Our transit times from the main reefer source areas in the East Coast of South America to Europe are extremely competitive.
• Our aim is to expand our market coverage. Through our reliable hubs in Algeciras, Gioia Tauro, Rotterdam and Bremerhaven we offer top quality service with the widest possible scope to an area stretching from the Mediterranean to the Iberian Peninsula, Ireland and the UK up to Scandinavia and the Baltic.
• Safmarine's service from Europe to and from East Coast South America is known for its service reliability and top quality reefer and dry equipment.
Safmarine in Brazil
• Safmarine Brasil Ltda is headquartered in the city of Sao Paulo (soon moving to Santos!) with offices in Paranagua, Fortaleza, Itajai, and Santos.
• We have more than doubled our size since the opening in 2002 (in terms of both volume and revenue)
• Safmarine's South America business includes import and exports to Europe, Far East, Arabian Gulf and India/Pakistan and West/South Africa.
• Safmarine Brasil's main markets are South Africa, North Europe, Mediterranean and West Africa (EXPORTS) and Far East (IMPORTS)
• We currently transport significant volumes of seafood, meat, poultry, fruits, vegetables, chemicals and pharmaceuticals in integrated reefers as well as various other commodities in dry cargo containers.
Trade growth/reefer etc
• The corridors we traditionally operate from are markets offering high potential when it comes to refrigerated cargo. And it is Safmarine's expertise in the reefer (refrigerated cargo) industry that has fuelled the line's growth in South America. (We have also been active in the dry container shipments for many years).
• The Middle East is another traditional market for Brazilian reefer exports and a market which has become increasingly important to Safmarine in South America. We have increased our capacity to the Middle East and this will enable us to grow even further.
• Brazil is still very much regarded as a 'reefer market'; significant volumes of meat, fruits and fish are shipped from South America to West Africa, Europe and the Arabian Gulf. The region is likely to remain one of the key growth areas for Safmarine in the years to come.
• Key to growth is the availability of reefer equipment, the optimum use of equipment (reefer containers) and the fast turn-around time of containers. Being part of the A.P. Moller Group gives Safmarine access to one of the world's largest and most sophisticated 'container pools' - both reefer and dry.
• The South America - Europe trade is predominantly an export trade with more goods moving from South America to Europe than from Europe to South America. In order to facilitate the logistics of having sufficient reefer equipment in South America, Safmarine deploys non-operated reefers (NOR), using reefer equipment for suitable dry container cargo (ie cargo which is non-soiling, non-damaging).
• The reefer market has grown, not only as a result of increased consumption of perishable goods, but also due to the move - for many years - from conventional to container refrigerated transport. Demand for reefer capacity on container vessels has been high, as opposed to demand for space on 'reefer ships'. This has been the case for major export areas in the southern hemisphere. Safmarine has responded to this trend with a focus on providing our reefer customers, both existing and new, with the opportunities and the tailor-made solutions they look for.
• One of the reasons for the popularity of reefer containers is their technological sophistication. Other reasons for choosing reefer containers over conventional transportation are: Containers make it possible for a wider variety of perishable goods to be shipped; furthermore, the type of service offered by liner shipping companies is becoming more attractive to shippers looking for year-round, fixed day shipping service as opposed to a tramping service. In many instances, shipping perishables in containers has also become more price-competitive, which is further encouraging shippers to consider containers versus conventional reefer vessels.
Other non-reefer exports
• Brazil's automotive exports are strong.
• Safmarine transports consumer goods such as coffee, furniture, shoes, clothes etc from South America to a number of destinations around the world.
• Volumes of certain manufactured goods have shown a decrease, possibly due to more sourcing from the Far East (a global trend)
New developments in Safmarine that will benefit reefer shippers?
External
• Our aim is to match the demands of our reefer shippers and as such we constantly improve the shipping service and product (the example of changing port rotation - see point above in page 1 - is but one example)
• Our success in securing more reefer slots/space has meant that Safmarine is better placed to serve its reefer customers in South America.
Internal
We complement these 'external' enhancements with a heightened internal focus.
• Our current internal focus is on flexibility; being able to adapt to any changes in the market. For example, the current ban on Brazil meat exports to Europe has shifted our focus to fruit, especially the citrus market Safmarine's trade and country management is diversifying as much as possible by expanding the number of clients, the cargoes that we carry and the ports that we serve. Our aim is to fill our slots every week.
• We are also empowering Safmariners to better serve reefer customers: our philosophy is "The more Safmariners know about our customers' business and product, the better Safmarine is able to transport and care for that product". With this philosophy in mind, Safmarine has embarked on a 'reefer education' programme which is being presented to Safmariners around the world. The aim of the programme - which supports Safmarine's 'people making the difference' philosophy' - is to increase awareness of the company's reefer services and expertise outside its traditional South African base (with the aim of growing Safmarine's share of the containerized reefer market outside of South Africa). We believe there is much to be gained from increasing reefer awareness and education within the organization and the reefer education programme is aimed at all interested staff, particularly among staff dealing with customers..
ends
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