An export strategy created by shipping agency GAC Dubai for their principles NYK has resulted in a growing volume of export cargo out of Dubai and an improved corporate result for NYK.
With a change in policy a year ago, NYK began focusing on exports out of Dubai to the Upper Gulf and Far East. Previously the demand on equipment had been to get it back to load-ports as soon as possible.
“The cargo balance has been weighted into the region in the past and there had been a growing inventory of containers built up over the years. By repositioning inventory back to the Far East, we were able to ensure that importing into Dubai had no negative revenue impacts on trade,” said Business Manager of Dry Cargo, Ken Dinnadge. “Although cargo volumes have been growing, freight rates have fallen by close to 50 percent over the past five years, and there was a clear need for a strategy to boost income and reduce costs.”
Jointly with NYK in Dubai, GAC developed an export strategy for cargo into Upper Gulf markets and back to the Far East. Targets for this were set 12 months ago and in April, saw over 1,100 teu of export cargo sailing for destinations in the Far East and Upper Gulf. Costs have also been reduced by an estimated 30 percent.
“These figures have been possible also due to a change in Dubai’s trade and industrial profile. There are a growing number of industries setting up here. We are also filling slots for ports in Iran and Saudi Arabia, minimizing the empties to be back hauled,” added Dinnadge.
The strategy is being extended to ro-ro cargo, which has been on the increase, a contributory factor being the growing number of auction centers choosing to locate in Jebel Ali. April saw an unprecedented number of NYK ro-ro calls. Some 17 pure car carriers on the US/Europe service called at Dubai with commercial cargo.
GAC represents the interests of over 3,500 principals worldwide and in 2002 attended to more than 21,000 vessels. GAC has added a number of new services to the more traditional ones of clearing and forwarding, project cargo handling, air freight, packing, warehousing and international moving. GAC Cargo Systems, with local offices in major centers throughout Asia, operates an extensive cargo services network for transport and distribution services. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
