SCS Safmarine

It is perceived that sea traffic and sea trade is full of inconsistencies.

Many product prices are attaining new highs, and have been progressively growing over a three year period.
There is a tendency towards shipping being in demand, particularly from leading traders such as India and China. There is a specific negation as demand is strong yet the rates for cargo that transport these commodities have been steadily on the decrease; this is prior to the commodity and trade boom.

Companies such as Grinrod are not exposed to the fluctuation, as they are well-prepared and have a contract that covers more than half of its fleet of 35 vessels. They might lose out on the swings but gain on the roundabouts.

There is no getting away from the fact that cargo rates are low, having an adverse affect on the entire shipping industry.

It is no secret that shipping across the globe is under pressure; many shipping companies are struggling and are unable to meet the contracts they put in place and are also unable to pay their debts to banks.

Contracts to cover such eventualities taken out years back seemed unnecessary at the time, but are certainly bearing fruit now.