Strong tensions are being experienced as regards transport costs for steel going in and out of Italy. From January this year up to the present time quotations for freight charges have soared, according to Siderweb's interview with Sergio Mazzucchelli of Zaninoni International Forwarding Agent and Giuseppe Domenighini of Logic Sped.
The explosion in the flows of steel being transported by sea is the main factor behind the increase in freight costs. "From the start of 2007 the costs of unloading goods - Domenighini declared - have increased by 10 percent compared to last year."
The main cause is the intensification seen in the exchange of steel products with China, and especially the growth in imports from the Asian country. The strong increase in steel prices at the start of the year pushed traders in the sector to complete strong quantities of purchases from abroad and from the Far East in particular. "The consequence of the increased steel importations is now being felt at the Italian ports - Mazzucchelli stated - where insiders are lamenting delays in unloading which are often long and costly."
This situation is affecting the principal Italian ports, though to varying degrees - as Domenighini remarks. "The port of Ravenna has been literally engulfed - he explained - unlike Marghera (port of Venice) where the emergency situation is not as bad." And why this difference? "The lesser quantities of material at the Venetian port - continued Domeneghini - are due to the inefficiency which customers experienced last year and which caused some of them to change port this year."
However, it is not possible to define the situation at Ravenna as a rosy one. "There are daily arrivals and the ships have different types of products on board necessitating various and difficult types of unloading procedures - Domenighini declared - The port is not doing anything to improve itself; neither as regards its insufficient infrastructure nor as regards its work and organizational modalities. Workers at the port are fed up with working under the current conditions and are already thinking of switching to ports on the Ligurian Sea such as Genoa and La Spezia."
Worsening the situation is the decline seen in exports. "Another factor that has contributed to the blockages at the ports - Mazzucchelli continues - is the imbalance between imports and exports. An almost complete stop to exports has been registered which is causing profound unease." This is unlike the situation last year when a good flow of material out of the country was observed. "In 2006 - Domenighini explained - exports to Algeria, especially of rebar, were strong. This year, on the contrary, sales to overseas destinations seem to be blocked, with the sole exception of plant equipment of which there are still good flows towards the Middle East."
Products waiting at the ports are not receiving the best of treatment due to the lack of available space. There are also difficulties as regards road transport. "Currently, there is a lack of trucks - the two fowarding agents stated - Transport operations between the ports and the final destinations of the merchandise are very long and are experiencing other difficulties."
With regard to land transportation unconnected with the ports a situation of equilibrium is seen. But this also seems destined to change. "Tensions are also expected in truck transportation - Mazzucchelli concludes - From July 15 there will be closures and then the story will be a completely different one."