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UPDATE - SA-ASIA (SAFARI) TRADE - ALEX DE BRUYN - SEPT/OCT 2009
Safmarine's South Africa Trades Executive, Alex de Bruyn:
- Seasonal import volumes on Safmarine's Safari (SA-Far East) service picked up as expected during the third quarter of 2009, although the increase in volumes was below that experienced in 2007 and 2008.
- Safmarine provided two extra-loaders (on a round-trip basis) as part of our Safari 1 service at the end of August and early September to serve the additional/seasonal demand for capacity. (A third extra-loader was planned for end September - deployment subject to demand).
- We expect import volumes ex Asia to South Africa to follow the 'normal' seasonal import volume trends for September and October 2009, with import volumes from Asia tapering down towards the end of October.
- We do not foresee a change in capacity for the Safari service for 2010; however, the decision to upgrade capacity would depend on demand and affordability. As demand equals capacity, preference will be given to higher paying cargo.
- Rate increases on Safari are essential. We saw a huge and dramatic drop in freight rates on the SA-Far East trade in 2009 and the current levels are simply not sustainable. The drop in rates on the Safari trade was as a result of the offpeak flows being lower than normalm largely due to the global slowdown, but also most likely influenced by the huge decline in rates on the East-West trades. While the market may expect the rate trend on the north-south Safari trade to follow that of the larger east-west trades, the truth is that the north-south trades in general - and the end-to-end South Africa-Far East (Safari) trade in particular - are very different (size and cost-wise) to the large east-west trades trade between Asia and Europe/USA. Simply put, the trade is unable to sustain the dramatic rate declines we saw during 2009.
As at 19 September 2009
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