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FREIGHT & TRADING WEEKLY
For import / export decision-makers FRIDAY 11 October 2019 NO. 2365
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Special feature –Bulk Cargo
page 5
Special feature – Risk management and cargo compliance
page 6
Liesl Venter
Freight forwarders have once again raised their objections to what they believe are unfair and costly demurrage and detention fees.
In the past few years forwarders and cargo owners have become increasingly outspoken about the manner in which these fees are assessed, even accusing shipping lines
of abusing their position by charging fees for situations out of their control.
It is not the principle of demurrage and detention that is being questioned, says Jens Roemer, chairman of the International Association of Freight Forwarders’ Associations (Fiata) sea transport working group.
“Demurrage in itself has a sound purpose in that it
encourages the return of containers to shipping lines as quickly as possible.”
But, says Roemer, there is a vast difference between discouraging the practice where containers are kept for long periods of time and what would be considered a reasonable amount of free time to load, unload and return boxes.
“In the past few years
free time periods have been reduced significantly and tariffs for demurrage and detention have increased considerably,” he says.
Demurrage and detentions apply when import containers sit in container terminals and depend on how long shippers hold containers outside marine terminals.
Mike Walwyn of the South African Association of Freight
Forwarders (Saaff) says it is a global problem, but especially a concern in regions where government and other port authorities are not able to provide speedy services. “In South Africa, the law dictates that any container that has to be moved for a customs inspection must be transported by the shipping line and it is more common
FTW’s Jodi Haigh met with the Vietnamese business delegation at the annual congress of the International Federation of Freight Forwarders Associations (Fiata) in Cape Town last week. Pictured from the left are Cindy Vo, Thi Thu Dung Mai, Nguyen Hien, Lisa Nguyen and Jodi Haigh.
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Forwarders lash out at demurrage and detention fees
FTW gets festive at Fiata
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2 | FRIDAY October 11 2019
DUTY CALLS
These statements have been edited because of space constraints. For the full versions go to ftwonline.co.za. Note: This is a non-comprehensive statement of the law. No liability can be accepted for errors and omissions.
Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY
Publisher Anton Marsh
EditorialEditor Joy OrlekDeputy Editor Eugene GoddardAssistant Editor Liesl VenterPhotographer Shannon Van Zyl
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Wire Rope and Cables Anti-dumping DutyOn 04 October the South African Revenue Service (Sars) announced the deletion of various anti-dumping items and the insertion of Anti-dumping Item 215.02 in Part 1 of Schedule No 2 to the Customs and Excise Act, 1964 “Anti-dumping, Countervailing and Safeguard Duties on Imported Goods: Anti-Dumping Duties on Imported Goods” to amend the tariff headings liable for anti-dumping duty for wire ropes and cables, imported from or originating in the People’s Republic of China.The reasoning is contained in the International Trade Administration of South Africa (Itac) minute 05/2019. Tobacco Product Counters Rules – Comment dueSars on 02 October published draft rules under
Section 110 to the Act, 1964 “Tobacco product counters”, for comment which is due by 04 November.The proposed rules oblige the licensee of a customs and excise manufacturing warehouse of tobacco products to determine the quantities of all manufactured products by means of a functional product counter on each tobacco manufacturing machine.
The draft rules explain the physical requirements of the product counter system, details of which will be communicated by the Commissioner for Sars to the licensee in writing at least 30 days before the installation date. The licensee would need to further adhere to strict reporting requirements but may request approval from the Commissioner for an alternative methodology if the prescribed product counter system cannot be used.
Sacu UCR Rule AmendmentOn 04 October Sars announced an amendment of the Rule to the Act, 1964 relating to the Southern African Customs Union (Sacu) Unique Consignment Reference (UCR) number. Container Depots – Comment dueSars on 30 September called for comment on the draft rule amendment notices to amend item 200.08 of the Schedules to the Rules to the Act 1964 “Places where container depots may be established” on which comment is due by 15 October.
Section 6(1)(hB) of the Act, 1964, empowers the Commissioner for Sars to appoint places where licensed container depots may be established for the storage, detention, unpacking or examination of containers or the contents of containers, for
the delivery to importers of the contents of containers after such contents have been duly entered or for the packing of containers for export.
This amendment is intended to list Lebombo in Item 200.08 in terms of section 6(1)(hB) of the Act, 1964 as an approved place for the establishment of licensed container depots.Schedule to the Rules to the Act, 1964 is amended to “Places where container depots may be established (Section 6(1) (hB) of the Act) Cape Town, Durban, East London, Germiston, Johannesburg, Lebombo, Port Elizabeth, Pretoria, Richards Bay, and Saldanha Bay.”
FRIDAY October 11 2019 | 3
FTW4248SD
New service opens SA to West Africa
Saaff chair to take charge at Fiata
The first Hapag-Lloyd vessel on the new MIAX service will arrive in South Africa in the first week of November, the shipping line announced last week.
Part of a bigger expansion plan into Africa, the new weekly service will connect the Middle East, India, South Africa and West Africa.
Speaking in Cape Town last week, Samad Osman, Hapag-
Lloyd managing director for sub-Saharan Africa, said the service offered the fastest transit time in the market between India and Ghana and Nigeria in West Africa.
Tim Phillips, managing director for Hapag-Lloyd in Ghana, said the new service would open South Africa to West Africa while increasing the shipping line’s service coverage to the region. With
a transit of just over a week between Cape Town and the Port of Tema in Ghana, it was good news for increased exports from the Western Cape to West Africa, a region that had been identified as a growth hub, said Cornelis van der Waal, chief research officer at Wesgro.
According to Captain Dheeraj Bhatia, senior managing director for Hapag-
Lloyd in the Middle East, Africa along with the Midde East were selected markets for further growth.
Osman said the shipping line had first entered the African market 12 years ago and had since seen a steady and significant growth in transported volumes – currently calling 17 ports with 11 services on the continent.
“Through this new service
we are integrating Africa even more closely to our global network,” said Phillips.
The first vessel on the service departs Jebel Ali in the Middle East in early October for Mundra. It will call Nhava Sheva, Colombo, La Reunion, Durban, Cape Town Tema and Lagos. The return trip will see vessels call at Cape Town, Durban and Jebel Ali. – Liesl Venter
South Africa’s Basil Pietersen has been elected President of the International Federation of Freight Forwarders Associations (Fiata).
Pietersen, who also chairs the South African Association of Freight Forwarders, takes on the new role having been both the chairman of Fiata’s Region Africa and Middle East (Rami) and a senior vice president of the organisation.
He told FTW shortly after being elected at the general meeting that took place at the annual Fiata World
Congress in Cape Town, that it was not only a great honour from a personal perspective to be elected by his peers, it was also recognition for freight forwarders in South Africa and Africa.
This is the first time that an African will lead the international organisation, which represents 40 000 forwarding and logistics companies in 150 countries.
“This gives us the recognition that we have both the skill and the professionalism in the country – and continent – to
lead this industry,” he said.“Considering the role
of Fiata in the global forwarding industry, this decision is a vote of confidence not just in me, but in our local forwarding industry.”
Pietersen said one of his primary goals over the next two years would be to grow African membership in Fiata.
Currently 23 countries are members of the organsiation.
He would also be critically involved in the change management of the organisation, he said.
Fiata is in the process of resetting itself to ensure its future sustainability.
This includes relocating the headquarters to Geneva, merging several of its departments, and significantly increasing its advocacy role – necessary moves in a changing world.
“We need to engage more with our members, to encourage them to embrace not just the challenges that we face but also the changes required to remain sustainable. – Liesl VenterBasil Pietersen
4 | FRIDAY October 11 2019
18The number of days of no
freight movements between South Africa and Zambia.
FTW4370SD
Fesarta sets up bureau to buffer transporters against graft
Truck violence drives demise of operators
Eugene Goddard Rampant corruption on the various corridors serving over-border freight throughout southern Africa has prompted the formation of a new body geared to protect road hauliers against graft – the Cross-Border Operators’ Bureau (CBOB).
An initiative of the Federation of East and Southern African Road Transport Associations (Fesarta), the bureau will also strive to live up to Fesarta’s name – creating a federated solution that unites various representative bodies operating in the region.
And although it will provide ancillary services where necessary, such as educating transporters and truckers about aspects like hazardous chemicals (Hazchem), the CBOB for the most part will act as a bureau protecting the
industry against crooked officials.
Said Mike Fitzmaurice, CEO of Fesarta: “Cross-border transport is being exploited by the various authorities on the corridors by over-regulation and predatory enforcement practices.”
He added that although Fesarta had been “fully engaged with various regional structures in trying to resolve systemic problems”, a recent incident involving an “unlawful impounding” after a Hazchem spill at a tollgate in Mpumalanga had brought matters to a head.
Fitzmaurice said they had been approached by a transporter to intervene after a tanker had been detained
despite the incident being relatively insignificant.
“Fesarta was able to have the vehicle released with no penalties.
“It led to the creation of the CBOB and the service
just grew from then.”
According to Fitzmaurice, “to date the bureau has been successful in having numerous dubious traffic fines cancelled and has secured the release
of a number of vehicles wrongfully impounded by traffic officers trying to solicit bribes from drivers”.
The need for a new and alternative approach to corruption and police inaction also became apparent when FTW spoke to over-border operators
following the recent spate of xenophobia-related arson attacks against road hauliers.
A source from a bulk liquid tanker company in Lusaka confirmed that congestion was a major headache through the region, yet he was particularly disparaging of corruption at South African border crossings.
“The level of extortion and exploitation faced by transporters entering South Africa is disgusting.”
In the meantime the transport industry is still reeling from the news that a 23-year-old outfit carrying cargo to and from Zambia, Celtic Freight, has decided to close its doors citing, “no visible security measures whatsoever from the South African police to protect our drivers”.
At the time of its decision, Celtic said its trucks had been stationary for 17 days
out of fear of what might happen on the road.
Confirming the persistent air of anxiety that dogs corridor cargo, Fitzmaurice said: “The daily harassment and illogical enforcement actions are a major feature of current operations as we all know, and they contribute to inefficiency, costs and frustration.
He emphasised that the bureau would also make it possible for members of other national road transport associations, previously prevented from also joining Fesarta, to benefit from its services.
Since it was quietly launched, the CBOB has already made an impact, said Adrian Chant, MD of Alro Transport.
“We utilise the CBOB to assist with any issues we have in South Africa. On every occasion the problems have been resolved quickly, efficiently and effectively.”
Daily harassment and illogical enforcement actions are a major feature of current operations.“
A second, violent wave of xenophobia last month saw at least three cross-border transport operators forced to close their doors, with drivers fearing for their lives and customers opting for “safer” port options like Walvis Bay and the Port of Beira.
FTW was unable to contact the other two cross border operators for comment but did speak to Adrian Friend, MD of Celtic Freight, who confirmed that
it had taken the 18 days of no freight movements to and from Zambia to make the decision to park its fleet of trucks and cease
all operations with immediate effect.
The company (which has been operating for 23 years) said the threat of xenophobic violence, with no visible security measures taken by the South African Police
Services, took a “hard toll”. “I can only beg South Africa
to take a good hard look at its
security situation coupled with the series of pompous Customs measures which seemingly aim to discourage transit cargo via Durban Port,” said Friend.
He told FTW that Celtic had hired buses and arranged for the safe repatriation all of its Zambian drivers, pointing out that the company had always “proudly employed” Zambian drivers.
“It is perfectly legal, and logical, considering our trucks have to collect RSA exports and deliver throughout Zambia,” highlighted Friend, adding that the senseless xenophobia had left everyone at Celtic in fear of their lives.
“Celtic remained a prime
target in all the social media threats and ramblings as we proudly flew the Zambian flag high,” he added, pointing out that the company did not want to be placed in the difficult
situation of having to employ armed guards and security. “Violence only begets violence.”
Road Freight Association
CEO Gavin Kelly previously told FTW that many cross-border transport operators
employed foreign drivers, mostly for use on
neighbouring legs of the
journey to Zambia, Malawi, Zimbabwe etc.
“This is because
they speak the language
and know the road conditions
and regulations better,” he explained.
– Adele Mackenzie
I can only beg South Africa to take a good hard look at its security situation.– Adrian Friend
“
FRIDAY October 11 2019 | 5
Parastatal and private-sector plans to mine coal on Botswana’s eastern border and ship it out via rail linkages in South Africa are in place and all that now needs to be done is for the authorities to put pen to paper.
Unfortunately, that’s where one of the continent’s longest developments in the making, mining some 212 billion tonnes of fine-grain coal halfway between Gaborone and Kasane on Botswana’s northern border, can be likened to an old steam locomotive slowly chugging out of the station.
Transnet Freight Rail’s general manager of capital planning, Brian Monakali, told FTW everything was in place.
“We have done the necessary feasibility studies and we’re 70% into the concept studies. We’ve even done the memorandum of understanding (MoU) and we’re only waiting for it to be signed.”
Asked whether there was any indication when that might be, Monakali, who also
heads up the International Heavy Haul Association (IHHA), said he hadn’t heard anything.
“All I can tell you is that we’re waiting for the authorities to sign the MoU.”
Once all the contracts have been inked and tenders have been awarded to private-sector concerns, the Botswana-SA coal partnership could herald one of the most significant bilateral collaborations, concentrated on sending vast quantities of raw minerals out via the Port of Richards Bay.
As for sporadic criticism that South Africa was not serious about regional integration in the face of developments around the African Continental Free Trade Area, considering that Botswana’s coal will most likely bypass the Maputo corridor, Monakali said that wasn’t necessarily the case.
“If needs be we will ship it out via Mozambique, but for the time being we’re concentrating on the coal terminal at Richards Bay.”
Speaking at the Johannesburg Chamber of
Commerce and Industry in July, Moshie Ratsebe of the Botswana Trade Investment Centre, described the coal mining venture as the “single biggest thing” on his country’s development agenda.
At the time, he confirmed that Botswana Railways (BR) CEO, Leonard Makwinja, had even stood up in Parliament saying: “It’s the one project that we’re definitely going for at the moment.”
Because of the price tag attached to taking a railway line of around 150 kilometres from Botswana’s Mmamabula coalfields through to Martin’s Drift northwest of Laphalale (Ellisras) – an estimated $300 million – BR had shelved plans to take a line all the way around to its border with Namibia.
When Ratsebe confirmed that those plans were “off the table”, they had been in the pipeline for at least a decade.
And if that’s not an indication how important it is for land-locked Botswana to unlock its coal potential through South Africa’s rail and ports network, consider Monakali mentioning the
development in the same light as all the tech talk dominating conversation among IHHA delegates.
Earlier this year, when the body met in Norway’s Arctic Circle in a town called Narvik, there was much discussion around automated trains and such 4th industrial revolution-type things.
But there was also talk of TFR’s dreams about coal, the very thing many say causes polar ice caps to thaw.
For now though, the world hasn’t lost its appetite for fossil fuel – at least not entirely – and Botswana appears poised to fulfil demand.
Why the powers that be are sitting on the Botswana-SA coal MoU, is difficult to understand.
“All I know is that we’re done meeting and talking,” Monakali said.
“We’re ready to go.” – Eugene Goddard
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Botswana-SA coal deal a slow chug out of the station
An illustration showing where railway infrastructure will have to be built to ship coal mined in Botswana via existing infrastructure from Lephalale (Ellisras).
6 | FRIDAY October 11 2019
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SPECIAL FEATURE
AFRICARev up your Africa business
To promote your services in this special feature contact [email protected]
Issue Date: 1 November 2019
FTW3294SD
Tristan Wiggill
P etty theft and pilferage are continuing to delay transporters and
raise the cost of cross-border trade, says Mike Fitzmaurice, CEO of the Federation of East and Southern African Road Transport Associations (Fesarta).
“Tarpaulins, batteries and spare wheels are frequently stolen,” he says. “Periodically, drivers are accosted and cell phones
and cash are taken.” He says pilferage occurs
when trucks are stationary – waiting in long queues at the likes of Kasumbalesa
in the DRC, where little to no security is available. Still, the pilfering of cargo in Africa is not as big of an issue as it is in South Africa, where it’s commonplace for thieves
to climb onto the back of moving trucks, cut tarpaulins and throw cargo out for their accomplices to retrieve.
He adds that it’s difficult to measure the extent of the pilferage. “It can be small-scale or large-scale, or even the entire load if the truck overturns or is stopped. No-one really knows what or how much is being stolen.”
Fitzmaurice says cell phone tower and electric gate motor batteries, as well as gate motors stolen in South Africa and taken cross-border, are hot ticket items for criminals. “Long-lasting lithium batteries are extremely sought after in rural areas.”
South African operators in South Africa remain the most vulnerable and, while any of the country’s national roads are susceptible to
theft, isolated areas with minimal police presence, such as Kokstad, Paddock and the stretch of highway near Port Shepstone, are particularly risky.
He says it would be extremely costly to create a special task force to deal with the issue. “I don’t know that transporters can afford to pay for it at the moment, given that profit margins are so tight. Transport rates are low and cross-border charges are high. Operators transporting precious commodities to South Africa are fairly safe along the North/South corridor. But, when they reach South Africa, they require expensive armed escorts.”
Technology is a powerful too in mitigating risk in the transport sector.
According to Tasveer Madhunlall, project manager at Forte Transport Solutions, the recent trucking strikes and attacks on trucks have created havoc in the transport industry – negatively affecting not only the movement of high-value goods, but all cargo in general.
“Many transport companies now face a dilemma,” he said. “Ensuring the safety of their vehicles is a priority. That means choosing between a route that is optimal in terms of mileage and cost or having to reroute and rather use safer roads not affected by strike action or the burning and looting of vehicles.”
While transporters
SA trumps its neighbours in cargo risk department
Technology helps industry navigate its way through risk
Electric gate motor batteries are hot ticket items for criminals.– Mike Fitzmaurice
“
FRIDAY October 11 2019 | 7
RISK MANAGEMENT
are not the only industry affected by these events, the shipping industry has faced similar challenges in the past, especially in terms of piracy along the African coast.
“Many shipping lines choose the safer shipping lanes, but a major fallout of rerouting is cost. It is no different when it comes to road. The decision that transporters are taking to opt for safer but different routes has a knock-on effect, resulting in higher mileage and more diesel. The economies of small towns, built around specific routes, will also feel the pinch as truckers turn to other routes.”
And it’s not just local strikes that affect the country.
“The recent drone strike in Saudi Arabia, which affected 5% of the world’s
oil supply, will now drive diesel costs further into the red. According to Madhunlall, an effective Transport Management System (TMS) can make a significant difference during these trying circumstances.
“A TMS f lags diesel consumption, thus managing costs through various features and addressing the fuel challenge while a driver incident report is provided for each trip. This allows transport companies to pull reporting of dangerous routes where escorts are needed,” he said.
Using technology transport companies can manage fuel costs better and minimise the risk of rerouting, giving them a competitive advantage.
– Liesl Venter
Growing volumes of high-value cargo demand increased security at depots and warehouses, which is why key handover points in the logistical supply chain are more important than ever, says Willie Nel, ZacPak managing director.
“Poor industry standards of packaging and the unnecessary handling of poorly packaged goods
create risk in the supply chain,” he says.
Clients are increasingly being advised to shrink-wrap, palletise or crate high-end items, even though it increases the cost, he
adds. “In the long term it makes sense.”
According to Nel retailers appear to be bringing in more high-end consumer goods - and that trend
is likely to continue.
Air freight director Stephen Bishop says air freight is often a target for criminal elements which is why training is so important – and the company puts
a lot of effort into educating clients and staff, he adds.
We contract a third party to help mitigate our risk and to ensure our staff are
regularly trained and qualified to handle certain cargo.”
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Growing influx of high-value cargo demands increased security
Technology helps industry navigate its way through risk
Clients are increasingly being advised to shrink-wrap, palletise or crate high-end items.– Willie Nel
“
8 | FRIDAY October 11 2019
RISK MANAGEMENT
Adele Mackenzie
An insurance underwriting manager has identified insider information about types of shipment, the route, the planned stops along the route etc as the biggest risk in the movement of high-value cargo.
“The cargo crime syndicates are sophisticated, well-armed and well-staffed, with eyes and ears at all levels of the supply chain,” said Horizon Underwriting’s Mike Brews.
“They target the lower-paid staff members and formulate a plan to target a vehicle at a specific point,” he said. Unfortunately, the shipper
is unaware of where they will strike and therefore has to be vigilant and provide the security and
cover “DRC to Durban”, said Brews.
He told FTW that high-value cargo such as copper, for example, travelled long distances, often across multiple borders.
“The security companies have seen a gap – particularly after the recent outbreak of xenophobic violence – and are offering their services all along the route. But this comes at a price and not all shippers can afford this.”
Brews added that shippers – and their transporters and agents – were increasingly savvy
about the risks and knew how to mitigate them through proper planning of their routes, how to manage the border crossings to ensure minimal stopping time etc.
“It’s the transfer of information that is harder to manage,” he said, reiterating that the fewer in-house staff were aware of the transportation plans, the better.
According to Brews, “there is always room for improvement” in working with law enforcement agencies to mitigate risk but there is evidence that crime syndicates have informants within these agencies too. “So no plan is fool proof,” he added.
“This lack of skill increases the risk to the shipper,” said Brews, adding that shippers
needed to ensure they dealt with insurers who had experience in the logistics industry.
FTW4161SD
Insider info biggest driver of cargo theft
The cargo crime syndicates are sophisticated, well-armed and well-staffed.– Mike Brews
“
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FRIDAY October 11 2019 | 9
RISK MANAGEMENT
Understanding where risk shifts from sellers to buyers can go a long way to guarding shippers against costly surprises – but mitigation means getting properly acquainted with Incoterms (International Commercial Terms), says Philippe de Pinchart of Röhlig-Grindrod.
The company’s national training facilitator says that Incoterms “make life a lot easier for importers and exporters because of the light they shed on what has to be done”.
He adds: “Once the buyer knows what the seller has arranged and paid for, the importer knows what he is responsible for and what costs he is still liable for.”
And yet, although there are only 11 terms that serve to create awareness around three primary concerns – obligation, risk and cost and where the supplier/buyer division of responsibility lies – importers are often
caught off guard with costly consequences, De Pinchart says.
“The biggest problem is that eight out of ten times buyers don’t know what they mean. They see it as too much of a challenge to come to grips with all the ins and outs of Incoterms. That’s why we do the training, to ensure importers understand the implications and risk attached to each Incoterm as we hope it will help them select the most suitable Incoterm for each import.”
In many instances, he adds, importers “will see an Incoterm on an invoice but be completely unaware of what it means”.
And although incoterms
are not a legal requirement, the majority of all international transactions are done using Incoterms.
“This is because they give both the buyer and seller a clear understanding of what each party has to do. It takes away the grey area.
As such, says De Pinchart, it’s your “frame of reference” –
a universal code that effectively encapsulates all the crucial requirements that, although not mandatory, are included in the contract of sale and therefore become part of it”.
Elaborating on this point,
he says: “Effectively one could sell something to someone without Incoterms. For example, the seller could tell the buyer he will pay for the
freight and the buyer must pay for insurance – but if there’s a misunderstanding and things go wrong it could end up in court. In that respect Incoterms take the risk away.”
As fate will have it, once a buyer finds out he has used the incorrect Incoterm for a particular import and something goes wrong , it’s often too late, De Pinchart warns.
Thankfully shippers appear to be coming to terms with the little three-letter codes that can have such a big impact on their bottom line.
According to De Pinchart, the recent set of Incoterms hasn’t changed much, apart from a few minor amendments to certain terms, “to reflect the changing landscape of our industry”.
Perhaps the most important change, he adds, is the new book issued by the International Chamber
of Commerce, which owns the rights to Incoterms, to coincide with the recent re-release of the 2020 Incoterms.
“It’s more comprehensive. There is an expanded set of explanatory notes for each Incoterm, the articles have been rearranged, and now they more accurately follow the sequence of sales transactions.”
It’s why De Pinchart believes Incoterms should be regarded “as the driver’s licence for anyone dealing in international logistics”.– Eugene Goddard
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‘Get acquainted with new Incoterms’
Track and trace plays key role in air freight securityThe ability to track and trace air cargo across every step of the supply chain will help mitigate risks to high – value cargo, according to ID Verification Systems (IVS) director, Marius van Jaarsveld.
He told FTW that this was why his company was working closely with airlines and ground handlers to build a system that gave 24/7 access to all trusted partners in the air freight supply chain.
“The global economy depends on the ability to deliver high-quality products
at competitive prices to consumers worldwide – and one major challenge is adequately preparing for cargo loss prevention practice,” said an Iata spokesperson.
She pointed out that there were many touch points along the supply chain and each of these points was a high-risk opportunity for loss to occur.
This is why the Iata Cargo Strategy includes safety and security and visibility and digitisation as two of its four key focus areas.
It is also why Swiss WorldCargo works closely with “reliable airline partners” to ensure their customers’ products arrive safely.
“Even though the demand for high-value cargo looks to remain consistent over the years, it is our duty to continue to adhere to any changes in security standards and ensure that despite an increase in demand, we can carry through the same strict, rigid processes for
all valuable shipments.” said Milo Gerisch, a senior manager, at Swiss WorldCargo.
He said the company had taken “extensive steps” to prepare for the potential risks that
could occur at any point in the supply chain.
“We have specialists with expertise across our network
across the globe that are consistently there to help make the supply chain experience completely seamless,” he said.
Incoterms is the driver’s licence for anyone dealing in international logistics.– Philippe de Pinchart.
“
We are working closely with airlines and ground handlers. – Marius Van Jaarveld“
Don’t miss FTW’s online Freight Suppliers Show on November 9, from 9am to 3pm. One of the speakers is Linda Bird-Duxbury, a trade consultant who will be discussing Incoterms.
10 | FRIDAY October 11 2019
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Explore export markets, don’t bemoan cheap imports – PatelAdele Mackenzie While local poultry producers are still pushing for higher import tariffs for chicken imports from the United States, Trade and Industry Minister Ebrahim Patel’s proposed new poultry master plan is more focused on upping the local sector’s competitiveness and exploring alternative export markets.
This approach has for long been advocated by the Association of Meat Importers and Exporters of SA (Amiesa), with its CEO Paul Matthew reiterating that imports were often used as a
scapegoat for the struggling industry.
“There is no dumping of surplus international chicken products on our market. Amiesa serves fundamentally different parts of the market,” he said.
Figures from the South African branch of the United States Poultry and Egg Export Council (USPEC) seem
to confirm Matthew’s
statement, highlighting that US chicken imports currently
contribute less than 3% of total chicken sales in South Africa. “This means the vast majority of chicken sold in South Africa is produced locally and the impact of imports on local sales should be minimal,” said a
spokesperson for the council.In addition, chicken imports
were currently subject to import tariffs designed to support South African poultry producers. “A significant 82% tariff is imposed on whole birds imported from the US,” said the spokesperson, adding that import tariffs on carcasses were now 31%; boneless cuts 12%; offal 30%; and bone-in portions 37%.
“This means imported chicken products cannot
undercut the costs of locally produced products in such a way that they impact their business,” she said.
The Department of Trade and Industry (dti) poultry master plan would take opportunities for local employment into consideration said Matthew, highlighting that attempts to reduce domestic unemployment via foreign trade did not take into
consideration the number of jobs created by South Africa’s overall participation in global trade.
“Imports also create employment through, for example, support services such as inspections, clearing agents, transport and monitoring laboratories,” he said, adding that Amiesa believed there were alternative measures available.
Imports are often used as a scapegoat for the struggling industry. – Paul Matthew
“
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LAST WEEK’S TOP STORIES ON
International instability weighs on SA marketsIt’s not a pretty picture for global markets at the moment – and if the US-China trade war continues, Brexit isn’t solved and we still have the protests in Hong Kong, there is a big possibility Q4 will be negative.
That’s the view of Mike Schussler, CEO of Economists.co.za, who believes Brexit could have immense impact on South African markets – particularly if the United Kingdom leaves the European Union without a deal.
“We’re already seeing a slowdown in Europe and it is very likely that Europe is already in a recession,” said Schussler.
“Although China is the single most important country for our trade, as a trade bloc Europe is our biggest trading partner. So obviously it’s an issue that will affect us.”
Schussler’s comments come in the wake of UK Prime Minister Boris Johnson’s last-ditch proposal for a divorce from the EU as he prepares for D-day on October 31.
This despite serious problems, particularly with regard to Britain’s border with the Republic of Ireland.
On the other side of the globe, protests in Hong Kong have also caused instability for the region’s industry.
This because China is the world’s largest manufacturer of goods – and Hong Kong is a gateway to China for many products.
Schussler believes we’re already feeling the effects of international trends, with the ocean freight sector in particular feeling the pressure.
“There definitely is an ill wind blowing onto South
African shores.”He said the breakbulk
sector had recorded its sharpest decline in over a decade.
“I’m closely monitoring bulk exports, and our bulk is still okay, but if it starts to turn it could be detrimental for us as breakbulk is the lowest it has been in ten years.”
Schussler said that instability in international markets could not subside fast enough for South Africa
after a f lat third quarter. He believes volatile global markets could see local markets suffering in Q4. – Bjorn Vorster
Volatile global markets could see local markets suffering in Q4.– Mike Schussler
“No end to transporters’ woes on DRC-Zambia borderAn alternative stretch of dirt track used by transporters serving the SADC on the south-bound empty leg to alleviate a notoriously congested crossing between the DRC and Zambia has become a major concern, a haulier has told FTW Online.
Transnet releases ‘solid’ set of resultsEfforts to address mismanagement at Transnet after years of misappropriation and malfeasance during the state capture years are paying off under the current board’s “clean sweep” strategy.
Pilots’ strike a cause for concern – SAAIn light of a looming pilots’ strike at state-owned enterprise South African Airways (SAA), the board of directors has expressed “disappointment” at the South African Airways Pilots’ Association (Saapa) for the planned action.
Namport productivity on the upThe recent investment by Namibian Ports Authority (Namport) in ship-to-shore cranes is paying handsome dividends, with the port achieving 27 moves an hour for the Rhine Maersk last month.
GENERAL AGENTS JOHANNESBURG DURBAN CAPE TOWN PORT ELIZABETH RICHARDS BAY SALDANHA BAY www.diamondship.co.za (011) 263-8500 (031) 570-7800 (021) 419-2734 (041) 373-1187/373-1399 (035) 789-0437 (022) 714-3449
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ABJ - AbidjanABD - Abu Dhabi, UAEANT - Antwerp, BelgiumAQA - Aqaba, JordanASI - AsiaBAR - BarcelonaBRH - B’HavenCON - ConakryCTG - Cartagena, ColumbiaDAK - Dakar DAR - Dar Es SalaamDBN - Durban DJI - Djibouti DOH - Doha, QatarELS - East London, SAGUN - Gunsan, KoreaHAM - Hamad, QatarHK - Hong Kong HUA - Huangpu, ChinaIMM - ImminghamJEB - Jebel AliJED - Jeddah
JPN - JapanKLG - Keelung KOR - KoreaKUW - KuwaitKWA - Kwanngyang, KoreaLAS - Las Palmas LAG - Lagos LEH - Le Harve, FranceLOB - Lobito, Angola LUA - LuandaMAN - Manzanillo, Panama MAP - Maputo MEL - Melbourne, Australia MDV - Montevideo MOM - Mombasa MUM - Mumbai NAM - NamibePDG - Pointe des GaletsPE - Port Elizabeth, SA PKG - Port Kelang POI - Pointe Noire, CongoPOR - Portugal
RIO - Rio Grande, BrazilROT - Rotterdam SAL - Salvadore, BrazilSAN - SantosSHA - Shanghai China SIN - Singapore SOH - Sohar, OmanSOU - Southhammpton, UKSET - Setubal, Portugal TAM - Tamatave TEA - Tema, GhanaTIL - Tilbury, UK ULS - Ulsan, KoreaVIT - Vitoria, BrazilWLM - Wallhamn, SwedenWVS - Walvis Bay, NamibiaYAN - Yangon, Myanmar YOK - Yokohama XIN - Xingang, ChinaZAR - Zarate
VESSEL VOY JPN SHA SIN MOM DAR DBN SAL VIT MDV ZARMORNING COMPOSER 110 24/09 07/10 15/10 26/10 28/10 03/11 15/11 17/11 20/11 22/11
ASIA / AFRICA / SOUTH AMERICA
ASIA / AFRICA / EUROPEVESSEL VOY ASI MOM DAR DBN TEA ABJ DAK CON BRH LEH ANTDREAM BEAUTY 009/010 15/09 17/10 19/10 26/10 SINGAPORE 09/11/2019MORNING CONCERT 130 25/09 - - 28/10 07/11 09/11 13/11 t/s via Dakar 23/11 21/11 tba
12 | FRIDAY October 11 2019
$ Pe
r Met
ric T
on
680660640620600580560540520500480460440420400380360340320300280260240220
BUNKER WATCH (FUEL PRICES)
Figures supplied by Tel: +27 (0) 21 551 1888 | Email: [email protected]
Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct
Dur
ban
Last week
$386This week
$457
to see that container only transported a few hours before the three-day free period expires rather than on the first day.”
In addition, forwarders have no control over subsequent government delays during customs clearing of containers.
This means that demurrage is just about a given for every inspection. Starting at around $50 per day, the figures quickly add up.
What makes the matter even more problematic, says Dave Watts, a consultant for Saaff, is that the demurrage invoices are often delivered weeks after the cargo has already been delivered to the client.
“The freight forwarder is then expected to foot the bill. It is an untenable situation and it cannot continue.”
This, says Roemer, is being experienced all around the world.
Earlier this year the Court of Appeal in Antwerp in Belgium ruled that costs of demurrage and detention were not in proportion to
disadvantages suffered by the carriers and said that it considered detention costs for a particularly long period to be exaggerated. It also found against a shipping line in a second case.
With forwarders increasingly going to court with these charges and speaking up, the Federal Maritime Commission (FMC) in the US launched an investigation and recently
released a report validating the concerns over demurrage and detention. While the organisation has yet to issue any rules on the matter, it
is expected that any moves made by the FMC will in all probability be followed by governments elsewhere.
According to Roemer.Fiata has stated its position on demurrage and detention in its recently launched Best Practice guide where it calls for an extension of the free period in cases where the terminal is unable to release or receive a container as well as limit the demurrage or detention accrued to a maximum amount.
Mbahupu Hippy Tjivikua is the new chief executive officer of the Walvis Bay Corridor Group (WBCG).
Tjivikua was previously TransNamib commercial and marketing executive, and knows the WBCG group well.
He was project manager for the WBCG
Safe Trade and Transport
Corridors project from March 2008 to May
2011.Tjivikua says
international trends and the global economy
are fast changing and it is crucial for the WBCG to adapt to these
developments. “I am driven by a sense
of urgency and want the company’s mandate to be executed in a professional and effective manner.”
He has close to 20 years of experience in the corporate sector, with 11 of those spent in the transport and logistics industry.
He holds a Master of Science in operations management and leadership from the Worcester Polytechnic Institute (WPI) Business School in Massachusetts, USA and an honours degree in Education from Rhodes University, South Africa.
He also has a certificate in project management from the University of Stellenbosch Business School and a certificate in financial management from the Namibia University of Science and Technology.
Toyota SA has thrown its hat into Africa’s free-trade ring with the news that it has started exporting vehicle assembly kits for seven versions of the popular Hilux pick-up truck to Kenya – a bilateral venture that represents a local investment of R20 million.
According Andrew Kirby, CEO of Toyota SA, the investment went into extending capacity at the company’s
Prospecton plant in Durban and has resulted in the creation of 20 new jobs.
The first assembled Hilux with parts from SA are expected to be sold in Kenya by month’s end - and although initial sales figures will most likely be slow, take-up by 2020 is expected to spike to around 1200 vehicle kits.
It is furthermore hoped that the duty-free imports will make
a significant impact on the Kenyan car market which, like many other African countries, is dominated by second-hand car imports from countries like Japan, Canada, and the US.
Kirby’s peer at Volkswagen SA, Thomas Schaefer, said recently that second-hand car dumping robbed Africa of significant manufacturing potential that could boost the continent’s economy.
WBCG appoints new CEO
SA-Kenya car deal rolls ahead
Forwarders lash out
FTW7898
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From page 1
Hippy Tjivikua
$50The figure at which
demurrage charges begin.