East Africa heaves into SA shipping view

As trade within Africa increases, South African shipping companies are beginning to focus on trade around the coast of Africa.The latest is Universal Africa Lines (UAL)

which has decided to launch a service to East Africa after running vessels to West Africa from Europe, USA and along the SA coast for four decades.
The shipping company is taking advantage of the growth in business between SA and other African countries, the company said.
Universal says its going to concentrate on bulk and project cargoes in its niche market in the oil and gas industry.
The group has a fleet of 22 cargo vessels, including feeder ships, coastal craft and landing crafts.
"The positive reaction from our client-base when we surveyed our interest in expanding our service to East Africa, is a clear indication of the expected growth yields in this market. Given our experience and track-record in West Africa, our entrance into East Africa is the next logistical frontier for UAL," says Angelo Manzoni, UAL’s South African chief operation officer.
Its first operation eastwards will be the use of the UAL Cyprus which leaves for Pemba in Mozambique.
Ship owners are aware that African ports have challengers, and the Cyprus for example is equipped with dual self-contained cranes capable of loading, carrying and off loading cargo.
"Our modern multi-purpose vessels are ideally suited for these kinds of terrains, thus minimising costly delays. The strategy is to return the vessel back into Durban, Cape Town and onto West Africa, subject to cargo levels," says Manzoni.
But shipping along the East Coast is also in danger of running into the notorious Somalian pirates which are now operating as far south as Beira in Mozambique.
In May Grindrod CEO Alan Olivier warned that escalating piracy along the east coast of Africa was having a "material" effect on the costs of shipping companies operating in the region.
There were 97 attacks off Somalia in the first three months of this year, compared with only 35 at the same time last year, according to the website of the International Maritime Bureau.
"Some owners don’t want to trade in these areas. If there is an incentive for them to trade there, this also pushes up costs."
A Grindrod vessel was shot at 18 months ago.
Although there were many international navies present in the waters off East Africa, "they are hamstrung on the action they are allowed to take", said Mr Olivier.
Shipping rates have also risen as piracy insurance rises.
Some have introduced barbed wire along the side, as well as water cannons.
But smaller operators have seen a rise in demand for cargo vessels along the African shore, and UAL is the latest to take advantage of a growing industry.
Source: Business Day