‘Total cost more important’

DAL Agency expects
2017 to be a continuation
of 2016, with trading
conditions being very
competitive for at least the
first of half of the year.
“The imbalance
between cargo and
available space on vessels
will continue to have an
impact on global shipping
in 2017,” said MD David
McCallum. “And this
imbalance will have an
impact for at least the
next two to three years.”
During this time, he
stressed that base freight
rates would be a focal
point for many importers
and exporters. “But we
are of the opinion that
an awareness of the ‘total
cost concept’ is of greater
importance than a focus
on the base freight rate,”
McCallum told FTW.
“The sluggish global
and local economy will
mean that volumes are
expected to remain f lat for
the year; Donald Trump’s
election and the Brexit
vote will without a doubt
play a role in the recovery
of the global economy.
And just how positive or
negative and the extent of
the impact on SA remains
to be seen.”
On a positive note,
McCallum highlighted the
recent strong performance
of the rand, improving
commodity prices and
increasing vehicle exports.
“These are good signs that
can only assist in driving
up volumes in the local
shipping industry,” he
said.