Back to the future: Breakbulk reborn in China-Africa trade

BREAKBULK is fast becoming the first-strike marines, hitting the beaches of Africa where sophisticated container operations lack modern terminals to access the market.

At the same time, breakbulk ships still in the trade are often so old that they fail to meet quality demands of modern-day shippers and insurers alike.

"According to the feedback we get, sometimes ship conditions are not good. Ships are old or dirty or delayed," Bechtel China logistics manager Zhou Hui said at a recent the annual Breakbulk Asia Conference in Singapore.

Said Virginia Moore, managing partner with Shanghai-based OSL Steamship: "There is an extreme variety of services, and it can be difficult for shippers entering the market to differentiate. They must know who the carrier is, and if they are really calling the ports you are asking them to call upon.

"Africa is such a difficult market," she said. "It's making that connection and making sure that communication is working - and that puts a lot of emphasis on your destination agent."

Service providers must create routes from virtually nothing, said Bertling Logistics managing director Mark Schweiger, who warns of bottlenecks everywhere, bridges too weak to hold up cargo and roads that only exist on maps.

Some African countries are reluctant to allow projects not intended for them to cross their borders. Shippers need an efficient port that can receive the cargo and that also gives access to the site. In Africa, the consequences of not thoroughly mapping out these issues can be extreme, Mr Schweiger said.

China sponsors 77 per cent of all African projects, said Hua Wallace Cai, a project manager with TransProjects Asia, who warned of poor port facilities, infrastructure and fickle government policies.

"Most [Chinese] project cargo is controlled or sponsored by the government and so is awarded on the basis of relationships," he said. "It can be difficult for them to find a reliable agent or partner in Africa," said Mr Hua.

OSL general manager Steven Yang, whose firm does most of its trade between China and Africa, said it is best to reduce the number of shipments when moving specialised cargo, thus reducing risk and uncertainty. "Improper packing is a frequent problem. Select a reliable shipping business or company and select a good agent," he said.

Big Port of St Petersburg reefer cargo volume falls 23.3pc in 2009

REEFER cargo handling through the Big Port of St Petersburg fell 23.3 per cent in 2009 compared to 2008's throughput, according to Russian Transport Daily Report.

In 2009, Nevskiye Vorota and Sea Fishing Port, the stevedoring companies of St Petersburg Seaport, increased reefer handling 24.1 per cent and 0.2 per cent respectively.

In the nine-month period of 2009 the reefer handling fell 26.2 per cent compared to the same period of 2008. Nevskiye Vorota was the only company to increase its reefer throughput.

Other stevedoring companies of Big Port of St Petersburg reduced reefer handling, said the report. First Stevedoring Company's reefer handling fell 38.6 per cent, Second Stevedoring Company was down 20 per cent. Petrolesport fell by 45.4 per cent in 2009 compared to 2008.

Baltic Ship Mechanical Plant reduced reefer handling 0.8 per cent, Terminal-Service was down 45.7 per cent, Zavod Morgidrostroi, off by 32.3 per cent, as well as Baltic Port and Inflot-Port, whose reefer cargo volume declined 49.4 per cent and 50.3 per cent respectively.

(Source: www.schednet.com)