MBG Shipping, a new shipping line for South African fresh produce exports to the UK and Europe, has been rocked by the departure of its minority shareholder and controversy surrounding the departure of its first vessel.
Carl van der Westhuizen, who launched the new shipping line on the 25 November alongside businessman Ian Wicks, walked out this week when a mix-up over the availability of containers resulted in the postponement of the shipping line's maiden voyage.
The first vessel, MV Alioth, was due to arrive in Europe in time for the final sales week before Christmas, with the ship now waiting for a new berth in Table Bay outside the Port of Cape Town. The ship is due to set sail by the end of next week.
Since the initial announcement of the new shipping line, there has been speculation that the new venture will find it tough to compete with the SAECS partners that have been dominating the shipping routes between South Africa and Europe. The country's fresh produce export trade had high hopes that the company would create competition in seafreight rates which are reported to be much higher than those applicable to their South American counterparts.
'SAECS needs competition because they have the South African export industry in a vice-grip,' said Mr Van der Westhuizen. 'Personally, I do not believe that the news business will have much of a chance.'
the announcement to customers that the first vessel would be delayed was made the morning after the company's launch, during which Mr Van der Westhuizen confirmed to a large audience of South African exporters and logistics providers that everything was in place.
'I am deeply embarrassed to have been put in this position after being assured the day before that all was in place,' said he added. 'I had no option but to quit the company.' Mr Wicks could not be reached for comment.
At the launch of the company, MBG announced that its weekly service would call at Tilbury and Rotterdam, with the possibility of Liverpool in the UK being added to the schedule. The second vessel was scheduled to leave Cape Town on 16 December, followed by weekly sailings from the port thereafter.
The latest developments will be seen as a huge setback for MBG Shipping as it seeks support and credibility within the South African industry. The launch in Cape Town drew wide interest from the fresh produce industry and, according to some industry leaders, had already contributed to downward pressure on freight rates on the South Africa-Europe route.
'It is vitally important for the future of the South African fresh produce industry that this venture succeeds,' one industry leader had said.
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