Increase In Volumes Already Evident

NVOCCs are navigating a storm of challenges. From congested ports to unpredictable carrier routes and weather hindrances, the industry faces a daunting task. In response, there's an urgent call for continual improvement and expansion of services to ensure smooth operations amidst turbulent waters.'We have found renewed relevance in driving our commercial mantra innovate to differentiate,' says SACO CFR's ocean general manager, Eva Rasmussen. 'Our focus remains on diversifying our product offerings. We create our products around the freight forwarders need for direct services, vertical-centric content, and speed to market, especially in challenging times, with congestion, schedule variability and equipment shor t age s.'She says now more than ever there is a need for refocused attention and detail when it comes to transit time, increasing the network of inter-depot moves and cross-border solutions, particularly when delivery time and deadlines are crucial. 'With all of this in mind, we have successfully implemented a new LCL-centric purpose-built operational system to enhance our staff 's efficiency and ultimately provide faster solutions to our clients. The reciprocal benefit increases accuracy while we focus on providing personalised service and shifting our customer's world.'According to Rasmussen, expanding the SACO CFR footprint remains a top priority. 'We are currently diving into new markets where we need consolidation services. We review the freight forwarders' needs and commit to launching new services, such as our new export services to Abidjan or new import service from Gothenburg. We have identified that the freight forwarders and their clients enjoy faster transit time and less cargo handling in transhipment ports.'The past few years have been challenging for the consolidations sector, which saw LCL volumes soar during Covid-19. '2023 was a challenging year to get through. There was an overstock of commodities both in South Africa and overseas, which resulted in smaller shipments or the consignees holding on to their overstock, which had been shipped at the higher transportation cost during Covid,' explains Rasmussen.Asked about the outlook for 2024, she believes it is far more positive, and an increase in volumes on both import and export cargo has already been seen in the first three months of the year.'Some of the increases in import volumes are based on the backlog at the Durban port where we are currently devanning January 'arrivals' so cargo is arriving with delay due to the congestion we experienced,' she told Freight News.Despite this, the expectation for consolidators, and particularly neutral NVOCCs, is optimistic. 'Structured LCL has become a key component of the supply chain, with growing focus as a solution given to clients. The essence of schedule integrity in a time of f lux and means of sourcing diverse routing and costing solutions have become the future of the product,' she says.Considering that the role of the NVOCC has altered, with many freight forwarders establishing their consolidation services, there is also a growing need for knowledge sharing and learning. 'We have undertaken CFS and LCL theory tours in our warehousing department with remarkable results.'