The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription FRIDAY 26 June 2009 NO. 1868 FREIGHT & TRADING WEEKLY Import and Export Consolidations by Sea and Air FTW0395 Germany Jnb: Tel: (011) 929 4900 Fax: (011) 397 4221 e-Mail: [email protected]Dur: Tel: (031) 584 6381 Fax: (031) 584 6380 e-Mail: [email protected]www.hartrodt.com Plz: Tel: (041) 581 0696 Fax: (041) 581 0715 e-Mail: [email protected]TRANSPORT IS OUR BUSINESS Cpt: Tel: (021) 380 5860 Fax: (021) 386 2498 e-Mail: [email protected]FTW1704SD BY Ray Smuts Historic, never-to-be- repeated occasions – Princess Diana’s marriage to Prince Charles and Barack Obama’s inauguration as the first black US president being cases in point – are a merchandiser’s dream, spawning all kinds of collectables, from spoons to porcelain, aprons, mugs, medallions and now… South African wine. Nederburg and Fifa, the world soccer governing body, have clinched an agreement for the famous Paarl winery to make and market a range of South African wines for next year’s World Cup soccer extravaganza, to be marketed locally and internationally. On the ball … Nederburg cellarmaster Razvan Macici and white winemaker Tariro Masayiti. Secrecy still surrounds executive’s suspension BY Alan Peat In spite of a lot of journalistic hours being spent on the pursuit, FTW is no closer to getting official confirmation of a name for the “senior executive” who is under suspension in a “probe into alleged misconduct” at Port Elizabeth harbour. The press looking into the matter have linked these facts, to which Transnet management has admitted, with the strong story doing the rounds that the senior executive under question is PE port manager, Ester Goosen – who is also heading a task team co-ordinating the R3.9-billion Port of Ngqura project. She moved to Port Elizabeth from Johannesburg in 1986 and was appointed port manager in 2003, having been a Transnet employee for more than 25 years. Reports at the time the story first broke suggested that Goosen had been suspended, but the port office in PE insists that she is on indefinite leave. Adding fuel to the fire, a senior PE business source said he’d “heard” (but had no physical proof) that Goosen was to take court action to have her suspension promptly lifted. We have not been alone in our searches for the facts behind the story. Bob Kernohan, business editor of the Herald in PE, told FTW that his paper had had a team working on the tale for almost two weeks. But all the parties involved, including Goosen, had been elusive, he added. The Transnet office had told the Herald repeatedly that Goosen was on leave, but did on one occasion say that she was “on leave, pending a misconduct hearing”, said Kernohan. Although FTW has interrogated Transnet head office, the voices there are still silent on the PE issue. Although Mboniso Sigonyela, Transnet’s external communications manager, was quite affable and willing to have a friendly chat, he wasn’t yet prepared to name names. Yes, an investigation into “alleged misconduct” was taking place, and, yes, a “senior executive” was under suspension. But no, Sigonyela would not say who. Quizzed on just why they were so reticent to reveal a name, he told FTW: “I believe it’s something to do with restrictions on comment in the Labour Act”. In a last-minute check just before FTW went to press, our official sources had nothing to add to previous comments except to say that PE port captain, Neil Chetty, was now also “acting port manager” – which would imply that Gooosen (previously titled port manager) was indeed out of action. This dual, if temporary, posting for Chetty was confirmed by the PE port captain’s office. PE port captain now also acting EL port manager SA wine gets Fifa send-off
30
Embed
Australia Belgium Germany Italy FREIGHT & TRADING WEEKLYcdn.nowmedia.co.za/NowMedia/ebrochures/FTW/Standard/FTW_26June_09.pdf · FREIGHT & TRADING WEEKLY DUTY CALLS Editor Joy Orlek
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscriptionFRIDAY 26 June 2009 NO. 1868
Historic, never-to-be-repeated occasions – Princess Diana’s marriage to Prince Charles and Barack Obama’s inauguration as the first black US president being cases in point – are a merchandiser’s dream, spawning all kinds of collectables, from spoons
to porcelain, aprons, mugs, medallions and now… South African wine.
Nederburg and Fifa, the world soccer governing body, have clinched an agreement for the famous Paarl winery to make and market a range of South African wines for next year’s World Cup soccer extravaganza, to be marketed locally and internationally.
On the ball … Nederburg cellarmaster Razvan Macici and white winemaker Tariro Masayiti.
Secrecy still surrounds executive’s suspensionBy Alan Peat
In spite of a lot of journalistic hours being spent on the pursuit, FTW is no closer to getting official confirmation of a name for the “senior executive” who is under suspension in a “probe into alleged misconduct” at Port Elizabeth harbour.
The press looking into the matter have linked these facts, to which Transnet management has admitted, with the strong story doing the rounds that the senior executive under question is PE port manager, Ester Goosen – who is also heading a task team co-ordinating the R3.9-billion Port of Ngqura project.
She moved to Port Elizabeth from Johannesburg in 1986 and was appointed port manager in 2003, having been a Transnet employee for more than 25 years.
Reports at the time the story first broke suggested that Goosen had been suspended, but the port office
in PE insists that she is on indefinite leave.
Adding fuel to the fire, a senior PE business source said he’d “heard” (but had no physical proof) that Goosen was to take court action to have her suspension promptly lifted.
We have not been alone in our searches for the facts behind the story. Bob Kernohan, business editor of the Herald in PE, told FTW that his paper had had a team working on the tale for almost two weeks. But all the parties involved, including Goosen, had been elusive, he added.
The Transnet office had told the Herald repeatedly that Goosen was on leave, but did on one occasion say that she was “on leave, pending a misconduct hearing”, said Kernohan.
Although FTW has interrogated Transnet head office, the voices there are still silent on the PE issue.
Although Mboniso Sigonyela, Transnet’s external
communications manager, was quite affable and willing to have a friendly chat, he wasn’t yet prepared to name names.
Yes, an investigation into “alleged misconduct” was taking place, and, yes, a “senior executive” was under suspension.
But no, Sigonyela would not say who. Quizzed on just why they were so reticent to reveal a name, he told FTW: “I believe it’s something to do with restrictions on comment in the Labour Act”.
In a last-minute check just before FTW went to press, our official sources had nothing to add to previous comments except to say that PE port captain, Neil Chetty, was now also “acting port manager” – which would imply that Gooosen (previously titled port manager) was indeed out of action.
This dual, if temporary, posting for Chetty was confirmed by the PE port captain’s office.
PE port captain now also acting EL port manager
SA wine gets Fifa send-off
FREIGHT & TRADING WEEKLY DUTY CALLS
Editor Joy OrlekConsulting Editor Alan PeatContributors Liesl VenterAdvertising Carmel Levinrad (Manager)
Yolande Langenhoven Claire Storey Jodi Haigh
Managing Editor David Marsh
CorrespondentsDurban Terry Hutson
Tel: (031) 466 1683Cape Town Ray Smuts
Tel: (021) 434 1636 Carrie Curzon Tel: 072 674 9410Port Elizabeth Ed Richardson
Now Media Centre 32 Fricker Road, Illovo Boulevard,
Illovo, Johannesburg. PO Box 55251, Northlands,
2116, South Africa.
2 | FRIDAY June 26 2009
Sars Update on 2010 FIFA World CupOn 18 June 2009 the South African Revenue Service (Sars) issued a media release titled, Update on Sars’ 2010 Fifa Soccer World Cup Preparations.
The release also states that Sars has put special Customs and revenue measures in place to meet its Fifa obligations for the 2010 Soccer World Cup.
Sars Customs Seizure of EphedrineIn a Media Release dated 12 June 2009 Sars announced that, on that day, it had seized Ephedrine with a street value of R3.6 million at OR Tambo International.
Ephedrine is apparently regarded as the base for most narcotics and is utilised frequently in the manufacture of Mandrax.
On the same day the Dog Unit was involved in the successful seizure of 65 master cases of cigarettes in a private storage facility in Marlboro, Sandton.
Each master case consists of 50 cartons each comprising 500 packets of cigarettes. The
illegal cigarettes, with a value of R422 500, were found to have incorrect health warnings and also did not have the diamond stamp that certifies cigarettes that can be legally sold in South Africa.
Tariff Amendment – Monitors – 19 June 2009The creation of a manufacturing rebate (also known as a Schedule No.3 rebate facility or rebate provision) for liquid crystal display (LCD) panels for the manufacture of video monitors incorporating an automatic data processing machine.
The rebate is free of duty, which means that no customs duty (duty) is payable on the imported LCD panels, provided that it is used in the manufacture of video monitors incorporating an automatic data processing machine, as per the defined tariff subheading.
Tariff Amendments – Pineapples – 19 June 2009The creation of two temporary rebate provisions for:
Canned pineapples in containers holding 3 kg or more, in such quantities, at
such times and under such conditions as the International Trade Administration Commission may allow by specific permit for further processing, provided that the Commission is satisfied that pineapples suitable for canning are not available in sufficient quantities in the Southern African Customs Union (Sacu) area. The extent of the rebate is free of duty.
Canned pineapples, in such quantities, at such times and under such conditions as the International Trade Administration Commission may allow by specific permit, provided that the Commission is satisfied that pineapples suitable for canning are not available in sufficient quantities in the Sacu area. The extent of the rebate is full duty less 20%, which means that only 20% of the duty will be payable (also said to be ‘liable’).
Competition – Decision To Approve MergerIn a Government Gazette notice of 19 June 2009 the Competition Tribunal published the following notices in respect of the Notification of Decision
to Approve Merger: (i) Crest Chemicals (Pty) Ltd and CH Chemicals (Pty) Ltd; (ii) Bidpaper Plus (Pty) Ltd and Pretoria Wholesale Stationers (Pty) Ltd; (iii) Federated Timbers (Pty) Ltd t/a Builders Trade Depot and the Buildrite Group; (iv) Mogs (Pty) Ltd and Elbroc Mining Products (Pty) Ltd and Stope Technology Services (Pty) Ltd; and (v) Aquarius Platinum Limited and Ridge Mining Plc.
Competition – Complaint ReferralIn a Government Gazette notice of 19 June 2009 the Competition Tribunal published the following notice in respect of the Notification of Complaint Referral. The Tribunal received a complaint referral from Preferred Provider Negotiators (Pty) Ltd against Iso Leso Optics Limited.
Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.
FTW1713SD
Afrilan ShippingTotal Transportation
SEA TRUCKING AIRSHIPPING DELIVERY TRANSPORT
Vessel Chartering Import and Export Sea Freight Containerised Cargo Breakbulk Cargo Project Cargo Warehousing Haulage Overborder Cargo Airfreight N.V.O.C.C. Supply Chain & Logistics New and Second-Hand Container Sales
Specialising in all your Freight Requirements
Your Global Link
In Conjunction with PEG 3
Johannesburg Tel: 011 706 7685 Fax: 011 706 5290
Cape TownTel: 021 418 3386
Fax: 086 56611977
DurbanTel: 031 301 9641Fax: 031 301 9442
FTW4180
BEE ACCREDITED
4 | FRIDAY June 26 2009
By Liesl Venter
South African businesses in distress due to the global economic crunch may be thrown a lifeline when the fist bail-out packages emerge in the next few weeks.
This is according to Rob Davies, Minister of Trade and Industry, who said the first packages were expected to emerge by mid-June and were being guided by the government’s framework response to the global economic crisis.
In a recent meeting with Business Unity South Africa (Busa), which has set up a series of engagements with government, Davies said job retention remained critical
for government in the tough economic times.
“The reality of job losses is what led to the crisis response and we are well aware of the
issues,” said Davies. “Our priority is to preserve jobs and to preserve strategic industrial capacity.”
He said they had fast-tracked their response measures to address the need in several sectors that were heavily affected and were hoping to conclude agreements to deal with the distress before the end of this week.
“We have been engaging with stakeholders to determine what is needed and how we can address these needs while keeping in mind that job retention is the most important aspect.”
He would not give details of what could be expected only saying that the Industrial Development Corporation (IDC) would be part of the plan.
Davies said sectors such as mining, clothing and textiles, automotive and capital goods had been hit really hard and that these were the industries government was targeting for assistance.
Asked what was expected of these companies in return for the bail-out packages Davies said much of the financial assistance would not come directly from government and they would not be expected to pay back loans, but it would be unfavourable to pay out huge bonuses to directors and shareholders.
“We will have to grapple with these issues as they come along. At the moment our immediate concern is job retention and strategic investment.”
According to experts, already more than a 100 000 jobs
have been lost in South Africa following the economic crunch. It is said that some 35 000 jobs are lost every month. Earlier this month President Jacob Zuma committed to ensuring 500 000 jobs would be created in the next six months.
Bail-out packages for industries in distress imminent
Davies outlines SA’s concerns on Sacu‘We’re critical of processes that undermine the organisation’
By Liesl Venter
South Africa is not intent on pulling apart the SA Customs Union (Sacu), but instead is critical of processes that undermine the organisation, said Rob Davies, Minister of Trade and Industry.
Speaking after a briefing at the offices of Business Unity South Africa in Sandton recently, Davies said South Africa’s objective was to promote deeper integration of Sacu and to see it move towards an economic union. He said the recently signed
Economic Partnership Agreement (EPA) should not be allowed to undermine it.
This follows the decision by South Africa and Angola not to sign the agreement while Botswana, Lesotho and Swaziland all opted to sign. Mozambique is also believed to be willing to sign. Namibia has initialised the agreement, said Davies, but shares South Africa’s concerns and has voiced this.
“We are of the opinion that there are fundamental issues that need to be resolved before we can
sign. There are trade related matters that we want clarity on.”
He said one of the conditions required was to keep cheap clothing imports out of South Africa and that questions around the ban on export taxes and no provision for tariff protection over a period of time had not been addressed.
“In March we met in Swakopmund in Namibia where our concerns were voiced. We were of opinion that negotiations were not concluded after this meeting, but
it was indicated that the Commissioner wanted to move towards signatures.”
South Africa was then called to sign on June 4 and was given the original text
which did not include the issues discussed, said Davies.
“We believe that our position was not taken into account and that the clauses they agreed to change were not changed. The rules of origin are different.”
He said South Africa was not holding the agreement hostage, but could not sign a document that undermined Sacu. In fact South Africa is in favour of a deeper integration in Sacu. We don’t want to see it as only a form of convenience for transfers of revenue.”
Rob Davies ... ‘Job retention the most important aspect.’
Industries targeted for assistance:• Mining
• Clothing & textiles• Automotive• Capital goods
FRIDAY June 26 2009 | 5
FTW1716SD
‘Optimism for the first time since September’By Alan Peat
All the economic signals are currently showing red, according to Luke Doig, senior economist at Credit Guarantee Insurance Corporation (CGIC), and it’s still going to be some time before the SA economy escapes the clutches of the crisis.
“The almost 22% year-on-year fall in manufacturing production and sales in April 2009, hard on the heels of the sector’s similar contraction in GDP for the first quarter of 2009, provides the starkest evidence of the precipitous decline in the domestic business cycle,” he told FTW. “Whilst it would be folly to assume that no further shocks by way of negative economic indicators may emanate, the vital issue is whether we are currently at the bottom of the cycle.”
However, the business confidence measures are not all dismal.
After recording a record low of 35.6 in April, Doig pointed out that the Kagiso purchasing managers’ index (PMI) ticked up to 37.3 in May – and he expected it to manage to eke out further gains in the months ahead.
“Three of the nine sub-indices perpetuated their poor performance in April,” he said, “with employment and
purchasing commitments remaining subdued, reflecting weak demand and a lack of short-term confidence.
“However, expected business conditions indicated net optimism for the first time since September last year.”
But, Doig added, this does not mask the pain that many are experiencing.
He highlighted that manufacturing sales of iron and steel products (22.9% contribution to total sales) declined 26.4% year-on-year, while motor vehicle products (10.9%) fell by almost half and furniture (5.2%) saw sales plummet 31.1%. Food and beverages (15.4% weighting of sales) managed to contain their sales losses to 4.8% in April 2009 compared to a year earlier.
“In March,” Doig said, “we were forthright in warning that April would be adversely affected by disruptions caused by public holidays and advocated front-loading interest rate cuts at that time.
“The business environment is going to remain challenging for months to come, while outlandish labour union wage demands do very little to help matters. Further pressures to costs in the short term may also be expected – fuel price under-recoveries of almost 40-cents per litre and 31-cents per litre for petrol and diesel respectively, underline these fears.”
FTW1722SD
6 | FRIDAY June 26 2009
URGENT NOTICE TO EXPORTERS TO KENYA
FTW4289
Please contact Akash from Global Inspections Group on011 267 5813 or [email protected]
For all your export inspection requirements to Kenya
SA gets chilling wake-up call on piracy threatBy Ray Smuts
Piracy is no here-today, gone-tomorrow phenomenon – so here is a wake-up call to South Africa that the ‘Somali virus’ is alive, active and on the march.
This chilling reality was underscored by leading maritime lawyer, Johan Swart of Shepstone and Wylie Attorneys at the annual
general meeting of the Maritime Law Association of South Africa in Cape Town recently where he asserted the country’s “lax maritime security” was cause for grave concern.
“South Africa is also facing an onslaught due to insufficient border security measures, in particular its increasingly vulnerable coastline.”
Swart referred to testimony by South African Maritime Safety (Samsa) CEO, Tsietsi Mokhele, to Parliament’s transport portfolio committee that South Africa’s technological capacity to monitor and track foreign vessels in its waters was “non-existent”, a situation that makes it “ideal for ships embarking on clandestine activities – and indeed
for pirates.“South Africa,” said
Mokhele, “should therefore heed repeatedly issued warnings as the country is by no means immune to becoming a prime target for pirates and a hotspot for piracy.”
The country is lagging, already five months overdue, in installing a Long Range Identification and Tracking
(LRIT) system to monitor ships passing within 1 500km of its coastline.
Swart concluded his engrossing presentation by saying: “The African continent is no longer an island unto itself…and is considered a virtual treasure trove for modern rocket-wielding pirates seeking to secure lucrative gains from their ill-acquired loot.”
ICS bursary scheme supports skills development goalsA bursary programme has been arranged by the Institute of Chartered Shipbrokers (ICS) together with Jo Tankers for the Sithengile Secondary School in Claremont, Durban.
It funds an introductory part-time course - typically completed over 9-months – and commenced at the start of the current school year.
The ICS told FTW that it became involved in assisting the school in 2008 – attempting to raise
the standard of its maritime economics course.
“We are confident that the Jo Tankers’ bursary sponsorship will set an example for other corporations to join in and support,” a spokesman said.
“The huge skills shortage in the maritime industry, coupled with the fact that the industry is by its very nature in a constant state of development, means that it is up to employers to ensure their staff are fully trained and fully up to date with
international standards. It is also the responsibility of the industry to support new initiatives to ensure a constant and sustainable supply of skills into the future.”
The course, “Understanding Shipping”, was awarded to the 10 best students who completed Grade 11 maritime economics in 2008. Upon successful completion of the course each student will receive a certificate from the ICS in London.
Joint initiative … Back row: D Bjastaard and J Odjfell, both of Jo Tankers head office in Norway; Jeremy Skeen, Jo Tankers SA representative; and Stephen Pike and Dan Dalton of King & Sons. In the foreground with Sithengile School Grade 12 pupils are Maritime Studies teacher Margaret Masuku and Megan Harris, ICS SA branch director.
For further information please contact: Tel: + 27 (0) 31 566 0100 Cell: + 27 (0) 84 620 9115 Anna Gey van Pittius – [email protected] Michael Hayes – [email protected]
FULL EXPORT DOCUMENTATION & ROAD BOND FACILITIES AVAILABLE
FTW4383
Bonded Roadfreight to NamibiaConsolidations • Full loads
As more and more shippers opt for smaller loads more often in the tighter economic climate, the impact of the
recession on groupage operators is less evident than the rest of the industry.Industry leaders offer their perspectives.
‘Actively helping customers to find ways of reducing costs’By James Hall
Transport consolidators have to be smarter than ever if they want to survive profitably in today’s recessionary climate, says Arnold Reddy, MD of Reddy Cargo Services. “In simple language, business is not what it was a year ago. Since the global economic downturn, consolidators are operating in survival mode and must adapt to the changing conditions to survive,” Reddy said.
Last year, road transport companies like Reddy Cargo Services, with its fleet of 50 long-haul trucks, had to contend with a 60% rise in running costs. This year the global recession has added to last year’s woes by slashing volumes. The only consistent factor throughout the roller coaster ride is the importance of the customer and
exceptional customer service. A fact that is more relevant now than ever.
“Customers are very well aware of the demand for their business – they hold all the aces and are playing it smartly, forcing the proactive transporter into offering more than just logistic and consolidation services.” says Reddy. “Our ‘Customer First’ philosophy, which has always been a founding pillar of Reddy Cargo Services,” says Reddy, “has enabled us to actively assist customers in finding ways to reduce transport costs. This proactive customer first policy is a must in keeping current clients and obtaining new business in these tough times. I guess one could say that we have now added transport consultation to our logistics and consolidation services.”
One way, of reducing costs,
says Reddy, is to ensure that cargo arrives swiftly and timeously, avoiding additional charges. “As Reddy Cargo Services does a lot of in-country,
breakbulk, container, short-hauls (within the Johannesburg area), long hauls for example to Durban and Port Elizabeth and over border work, we have always
been mindful of the additional costs associated with late delivery and are proactive in avoiding these delays – saving our customers both time and money.”
Part of the fleet ... Contending with a 60% rise in running costs. Photo: Tijana Huysamen.
CONSOLIDATORS
8 | FRIDAY June 26 2009
Cargo to Africa on a growth trajectoryGlobal volumes maintaining
By Joy Orlek
Despite the economic downturn, independent groupage operator CFR Freight has seen volumes maintaining, says managing director Martin Keck.
“Compared to clearing and forwarding agents who are talking of more substantial volume declines we have been a lot more fortunate. We believe that a considerable amount of sea freight cargo has converted from FCL to LCL,” he told FTW.
While there hasn’t been growth, he says volumes have remained stable despite the worldwide economic slowdown.
“Looking at specific regions, however, volume discrepancies are noticeable. While volumes to and from countries worst hit by the crisis – like Japan and the UK – are more volatile, South East
Asia, specifically Vietnam, has grown. A lot of Chinese factories have relocated to Vietnam and our agents Shipco Transport have recently opened their own offices due to the growing demand.”
Another growth area is exports into Africa, says Keck, where volumes are substantially up.
“Not only are South African products being exported into Africa, but a lot of goods sourced in India and China are transhipped via Durban. Our containers are being filled with Chinese and Indian cargo destined for sub-Saharan Africa. Europe has lost its number one position as a source of African imports.”
But while volumes may have remained stable, profitability has taken strain, he added.
“Because of overcapacity on most trades, space is freely available, which means freight rates have plunged drastically
– and with everyone vying for a share of the shrinking pie, competition is fiercer than ever.”
A big concern, says Keck, are the cut-throat rates. “A
number of freight forwarders and shipping lines who have substantial infrastructures to support are rather doing business at a loss than turning away customers – and that
destabilises the trade for everyone.”
When the market is tight, expertise becomes key, says director Peter Schmidt-Löffler.
“Everyone is getting good rates from the lines.
“The question is who can do the business smarter and maximise container utilisation. And of course service is very important from our side.
“It’s crucial to have the right tools like IT, neutrality and a powerful international network, but service and customer focus is what truly sets us apart.”
CFR’s membership of the WolrdWideAlliance provides extensive coverage for sea freight shipments around the globe while its recent joining of the neutral network of international airfreight wholesalers, the AirCargo Group, provides the same benefits for its growing airfreight customer base.
Martin Keck … ‘Volumes have remained stable despite the worldwide economic slowdown.’
Peter Schmidt-Loffler … ‘Service and customer focus is what truly sets us apart.’
No fireworks – but second quarter improvementMoz on the planning boards
By James Hall
The key decision to serve a destination depends on customer demand. For Durban-based Transmax Logistics, located at Pinewood, the next likely country to upgrade from secondary to primary route may be Mozambique.
“Our primary routes are Zimbabwe and Zambia, but this year we’ve received
a lot of enquiries about Mozambique,” said Melissa Upton, financial manager at Transmax.
“We would like to develop that route. Our main concern is guaranteeing delivery time. We need to honour deadlines,” Upton said.
Rather than have customer shipments languish for days or weeks as enough consolidation cargo is assembled to fill one of the
company’s four 34-tonne Super Link trucks, there have to be enough customers to consistently and swiftly send a vehicle on its way to justify a new route.
“We deliver anywhere in Africa. Volumes generally were off the first quarter of this year, which is the slow quarter anyway, and only slightly. We’re not expecting fireworks for the rest of the year, but we’ve seen volumes
improve in the second quarter,” said Upton.
One effect of this year’s economic contraction is that some previously dependable clients are having difficulty paying invoices by the usual 30-day deadline. As is the case with other consolidators, Upton noted: “We are cautious at the moment, a little wary of extending credit.”
Transmax Logistics picks
up shipments from its clients’ premises throughout SA, and maintains a depot in Johannesburg. Hazardous material handling is one speciality. The company fleet is about to grow with the purchase of another SuperLink.
“It’s a long-term investment. Sometimes we have to sub-contract, and when you do that you may not be in control,” Upton said.
FTW1701SD
CONSOLIDATORS
FRIDAY June 26 2009 | 9
FTW1706SD
Big drop in container utilisation factor
The annual peak season for SA shipping, usually August and September, will tell the tale of 2009’s profitability for some consolidators hit by a decline in international shipping this year, said Raymond Cutts, sales director for International Liner Agencies.
Freight consolidators take up a very significant position within the supply chain and are often discounted in tough times but called upon when capacity difficulties are experienced and freight rates increase through supply and demand.
“This year our container count is running in line with that of 2008, however the utilisation factor has dropped significantly, in particular on our Far East trade. For us we have a 40 foot container out of Shanghai for instance, which we used to fill with 65 cubic metres of consol cargo. We are now only achieving 45 to 50 cubic metres. That’s 15 to 20 cubic metres down for us,” said Cutts.
“The shipping lines’ aggressive approach to freight rates in the quest for survival is drawing everyone into a downward spiral,” says Cutts. “For the first time South African consolidators are facing negative freight rates and this can be catastrophic. Any consolidator who falls into this trap is doing the importer
a disservice as the costs will inevitably be recovered somewhere along the line, usually at destination.
“For consolidators who sell container space to freight forwarders, profits can be marginal at the best of times. We do however appreciate forwarders have an obligation to advise their customers on the best shipping options.”
That being said certain carriers could be driven out of the business and even the Maersks of this world will find it extremely difficult to survive a prolonged period of operating at these levels, added Cutts.
“Containerised carriers have to be questioning how long they can endure, to the point where they can price at a level that will allow them to stay in business.
The next few months will see whether volumes pick up and if they do this could lead to carriers introducing general rate restorations, which is good news for all of us,” he said.
“ILA however still has a very positive outlook and through our sales focus is pushing hard to gain additional market share on our traditional trades and using this time as an opportunity to invest in the development of a number of new routes.”
Next few months will be telling period
Importer ultimately pays the price for kickbacksBy Joy Orlek
The issue of kickbacks paid to suppliers, particularly on the trade lanes from the Far East and Indian subcontinent, is not going away and ultimately it’s the importer who is carrying the cost.
For every cubic metre imported, NVOCCs are paying kickbacks to suppliers in India and China, sometimes in the region of US$30-40 per freight ton. If they don’t pay they don’t
get the business.Groupage operators who
preferred to remain unnamed told FTW that it was a huge problem, and that they were waiting for it to implode.
“If you are paying a $40 kickback to the Chinese exporter, you’re going to load it onto your landside charges and the SA importer will be the ultimate loser.”
And according to our sources, the problem is getting worse.
This year the container count is running in line with that of 2008, however the utilisation factor has dropped significantly, in particular on the Far East trade.
Weathering lean economic times requires hard management choices, but the curtailment of services should not be an option.
“Volumes are definitely down this year. But the trucks still go out because that is the service we offer. Our customers have confidence that we will deliver those services,” said Daniel Singleton, general
manager of M&B Transport Services.
A consolidator with nearly 20 years’ experience sending breakbulk from SA to Lesotho, Swaziland and more recently Botswana, M&B Transport Services, based in Edanvale, is devoted to over-border consolidations. All types of general cargo except perishables are moved.
Company trucks transport “anything and everything,” said Singleton, but in particular motor spares and consumer goods destined for neighbouring countries’ factories, stores and supermarkets.
“It is generally the same driving time and distance from Gauteng to Maseru, Manzini or Gaborone. When it comes to dealing with customs,
experience definitely helps. You have to know what you’re doing,” Singleton said.
To avoid delays at the border, documents are prepared at the company headquarters.
“It’s all electronic. All the paperwork is done in Jo’burg beforehand and submitted electronically so it’s there at the border when the truck arrives. Lesotho, Botswana
and Swaziland are not on this system yet, but once a truck is cleared on the South African side they usually let it through. We don’t usually have any problems,” said Singleton.
M&B Transport Services clients rely on that experience, and the certainty that in bad economic times and not just good the trucks keep rolling on schedule.
Simplifying Part 108 complianceThe imposition of the Part 108 air cargo security regulations next month (July) will make compliance an essential ingredient of the airfreight industry’s product mix, according to Jurie Koen, sales manager of Transit.
“Our decision to be a ‘regulated agent’ as per Part 108 will enable our clients to operate as ‘unknown shippers’ – but with minimum delay and cost to their operations,” he told FTW.
“We play a vital intermediary role. Freight tendered to Transit branches will be processed and tendered to the airline in compliance with Part 108.”
But the compliance procedure has not been without its costs, Koen added.
The company had to invest in X-ray equipment, X-ray operators, X-ray and Part 108 training, while at the same time beefing up security with additional cameras, response units and the like. It also had to redesign all its warehouses to conform with operational
procedures, acquire new identity stickers and pay licence fees.
“A Part 108 surcharge will be introduced with effect from July 1 this year,” said Koen,
“to help us recover the initial outlay and assist with the ongoing operational costs.”
In achieving Part 108 compliance, Transit has also had to create a management
strategy to solve each of the security demands laid down in the new regulations.
“Over the past two years we have made huge efforts to adjust and comply with
security 108,” said Koen. “And during that time our policy has always been one of embracing the intent of the rules rather than opposing them or finding loopholes.”
Trucks keep rolling on schedule – in good and bad times
Team work … Gerrie le Roux, airline liaison officer; Michelle Cayeux, sales representative; Jurie Koen, sales manager; and Fanus Wolfaardt, national operations manager.
• 24 tons to abnormal loads• Projects• Door-to-door• Warehousing & Distribution
Angola
Now offering
consolidations
to Angola
CONSOLIDATORS
12 | FRIDAY June 26 2009
CONSOLIDATORS
FTW4433
Miguel VieiraProduct managerfinancial systems
Nachi Mendelow Marketing representative
Waldo Coetsee Product manager
operational systems
Arnold GarberExecutive Chairman
Compu-Clearing Outsourcing
Tel: 011 882 7300 www.compu-clearing.co.za
Overnight airfreight volumes increaseBy James Hall
Consolidators report this to be a challenging but interesting year, and say they are seeing changes not only in volumes but also in the type of services that customers prefer.
“Certain volumes on certain service types have increased – for instance on the airfreight side overnight cargo volumes have increased while normal air cargo has declined and moved to road due to the cost
differential,” said Bruce van Wyk, managing director of Interloc Freight Services. IFS is a specialist in airport to airport transport and maintains a network of airport-based offices at OR Tambo, Cape Town, Durban, Port Elizabeth, East London and George, with agent representation in Bloemfontein and Kimberley.
“The increases are mainly due to new accounts while existing clients have marginally improved,” said Van Wyk whose
firm moves mainly general cargo.
As the company name suggests, Interloc brings together the differing parties in the shipping industry – freight forwarders, courier companies and airlines who then reap cost savings through operation integration and preferred capacity allocations.
Established in 2005, Interloc
itself is a relatively new player within the domestic airfreight industry, but its staff accounts for more than 25 years’ experience and long-standing relations in the domestic consolidations industry.
IFS has a strategic alliance with Air Care Cargo, and its customers benefit from preferential contracted terms from SAA, British Airways,
Express Air Services and Imperial Air Cargo.
For ground transport, Van Wyk said, the company in-sources all vehicles. “And our capabilities include eight ton trucks to Super-Links.”
As for the qualities that draw in new customers, urgency, accountability, expertise, location and economies of scale are what counts, he said.
Zimbabwe recovery beginsBy James Hall
A barometer of any nation’s economy is the number of trucks bringing goods in and exports out. By this measure, BP Freight is a good source to consult for prospects in Zambia and Zimbabwe. Both countries have gone through rough patches for differing reasons,
but at mid-year are showing signs of rebounding.
“We started as a consolidator to Zimbabwe 12 years ago, and at the beginning of this year our consols dropped off drastically. One delivery every 10 days. Slowly but surely it’s been picking up, and we are now back at the levels of early last year. All our regular clients
whom we’ve been dealing with for ten years are ordering again. Now we are doing a consol shipment every four to five days,” said Peter Loram, a manager at BP Freight.
Because the rand and dollar replaced the Zimbabwe currency in March, some stability has returned to the buying and selling of goods, and
with this a revived interest in doing business. “For us we can see the difference. We are doing a lot more quotes for shipping to Zimbabwe,” said Loram.
BP Freight picks up shipments from Cape Town and Durban, and consolidations are assembled at the company’s Johannesburg office and
warehouse in Pomona. Like other transport firms delivering to Zambia, a lessening of volumes since last year is attributed to declining mining activity. The month of May saw a perceptible increase in volumes. “It’s too early to say it’s a trend, but we do see more business. The mines have to keep operating,” said Loram
Preferential contracted terms with a range of airlines.
CONSOLIDATORS
FRIDAY June 26 2009 | 13
CONSOLIDATORS
FTW1402
Zim volumes steadily growingBy James Hall
Despite the travails of Zimbabwe's economy this past year, a key transport player like Leo Shipping has found its consolidations to Zim for the first quarter of '09 have matched last year's volumes. Leo Shipping specialises in Zim groupage transport, and anticipates steadily improving business ahead.
“99% of our business is Zimbabwe, and much has changed in the past months, mostly due to a change in forex rules that went into effect on March 1” said Warren Jayes, a partner in the Kaserne-based road transport firm.
DRC and Zambia are also served by Leo Shipping, but this year's decline in commodity demand has drastically reduced volumes to those countries, while demand for a key item hauled into Zim, construction equipment and inputs, has risen just as dramatically.
“There is a lot of building going on all over the country. We deliver to Harare and the materials, which are
manufactured in South Africa, are taken to the sites from there” said Jayes.
Reflecting a steadiness of business and belief that more work is to come, the group’s fleet of 42 trucks in '08 has grown to 50 this year.
“Zimbabwe is one of the busiest destinations for South African transporters. It definitely is for us,” said Jayes whose trucks also haul groceries and general goods into the country.
“There is a lot of positivity about the economic outlook in Zimbabwe. The business climate is good and there is a feeling that it will grow better as the year goes on. What I know is what I see, and the volumes are steady and growing,” Jayes said.
Even the perennial congestion at Beit Bridge Border Post has abated somewhat he said. The replacement of the Zim dollar with the US dollar and SA rand have seen goods returning to Zim store shelves and less consumers streaming into SA to purchase necessities.
Ship
ping general
ServiceS
Service is our priority
FTW3743/new
The preferred
neutral transport
supplier to SA’s
biggest Clearing +
Forwarding
agents,
importers and
exporters.
T +27 11 873-4786 F +27 11 873-6066reganm@shippingandgeneral.co.zawww.shippingandgeneral.co.zaBEE ACCREDITED
Shipping & General Transport Nationwide Transport and Warehousing specialists
CONSOLIDATORS
14 | FRIDAY June 26 2009
Unlimited Assistance
FTW3577
DAILY CONSOLIDATIONS TO • BOTSWANA • SWAZILAND
• LESOTHOLocal and into Africa on request
1000m2 warehouse in Johannesburg
600m2 warehouse in Botswana with bonded facilities
Door to door deliveries
Handling of all documentation and border procedures
The extra muscle added through its acquisition in 2008 by the multi-national Bollore Africa Logistics has seen SAEL fast becoming an Africa specialist, according to the company’s Durban-based less-than container load (LCL) groupage specialist, Anna Gey van Pittius.
“It gives us an edge over our competitors,” she told FTW, “as we now form part of the most extensive integrated network in Africa.”
“Our focus is on Africa for LCL, road and air freight, as we see huge growth potential even in these tough times.”
The group’s African interests spread a web of service outlets spanning the entire continent.
Said Van Pittius: “We have the facilities to service almost
every African country – with over 40 offices and over 2 000 employees across the continent.”
The areas of rapid growth include Angola, Zambia/DRC and Madagascar, and the same growth spiral is expected in Zimbabwe – once the political situation stabilises and the rebuilding of the country begins.
“SAEL is a market leader in LCL imports,” Van Pittius added, “and, for the past two years, we have taken our exports to a new level.
“With our ocean services covering East and West Africa and using our corridor approach to service the landlocked countries, SAEL is fast becoming the Africa specialist.
“Through our systemised border processes and road bond facility we are able to offer a full door-to- door service.”
‘Customers thrive on the direct contact’By James Hall
For Botswana Consolidators – a company whose name says it all - business has been down slightly in ’08. The reason can be traced to a downturn in mining sector activity, which made up a portion of the firm’s northbound groupage.
“Mining has been affected terribly. That was full load shipments rather than groupage, and that has slowed way down. But I think we’re getting along fine in other shipments. We still manage to send up to three Superlinks a week,” said Kitty Hewitt, Johannesburg-based managing director.
In addition to six Superlink horse and trailer rigs, the company’s fleet comprises a four and
eight tonner and a pair of bakkies. Owner-drivers are subcontracted on occasion, and refrigerated trucks are arranged for perishable transport, though only for large consignments.
Reefer equipment is required for one of the main movers to Botswana, medical supplies.
“We also bring
medical supplies into Swaziland and Lesotho. Breakbulk cargo includes transformers, turbines, cable drums and other equipment,” said Hewitt, listing the necessities of industrial maintenance made in SA and shipped into neighbouring countries.
The company has thrived on referral business. Clients recommend our service to others, and the draw card is personalised customer attention.
“I think this is a lot of the appeal of our company. Customers phone and they get hold of me directly or the lady who works with me, and they get a quote right away. There’s no delay dealing with different departments or faxed paperwork,” said Hewitt.
EDI will bring consistency to Lesotho routeBy James Hall
In order to maximise delivery speed for consolidations going into Lesotho, transport firms are urging the country’s customs officials to get with the electronic programme.
“EDI is now active at places like Maseru Bridge, but only on the South African side. We’re using it 100% and we are seeing time savings on the South African side. But things slow down on the Lesotho side,” said Kevin Dagnin, founding member of Kayhil Freight. The Lesotho consolidation specialist maintains its Gauteng office in Alberton, and has a distribution warehouse in Maseru.
“EDI will also save time by making customs operations consistent. Consistency is a problem with the South African customs. Every shift that comes on has its own interpretation of the rules. But with EDI, once a cargo is cleared in Pretoria, there’s no room for discussion,” Dagnin said.
Kayhil has years of experience finessing every time and cost saving it can manage for customers, and as a result now handles courier work for most express parcel companies, including FedEx, TNT, United
Express, Dawn Wing, In-Express, Globe Flight, OCS, Skynet and Courier IT.
The years of consolidations have seen cargoes change, from a preponderance of goods going to garment factories to humanitarian aid. But hardware is one steady mover.
“We transport a lot of agricultural tools that go to the hardware stores, like irrigation pumps and pipes used by the farmers,” said Dagnin.
Volumes are slightly down from last year as even small landlocked Lesotho feels some effects of global conditions, but demand for the general goods moved in Kayhil’s consolidated shipments has remained consistent.
Another perennial mover is computers, which Kayhil Freight imports for its South African manufacturers.
“We bring in electronic supplies regularly, on a daily basis for some customers,” said Dagnin.
A notable development on the customs clearance issue has been the recent election of Hilary Woelk, Kayhil’s managing member, as chairperson of the new Lesotho Freight Association, which is engaging Sars and Lesotho’s Customs Department on EDI and other road freight issues.
Special software caters for groupage marketEDI compliant for manifest acquittal system
By Alan Peat
You must have key strengths in a software system if you are intending to match the needs of the consolidator market, according to J-L Koekemoer, systems architect/developer at Ship-Shape Software.
This, he told FTW, means that a package has to be designed that complies with all the speciality requirements of the NVOCCs, and gives them a comprehensive record of each step along the supply chain.
“Our software gives an across-the-board cover,” said Koekemoer, “producing professional-looking quotations/estimates, then integrated all the way to doing the pre-alert, the final
shipment and then the hand-over and invoicing.”
This allows the consolidator to print various forwarding, breakbulk and groupage-related documents – branded with such crisp titles and acronyms as SOB details, DROs, ANFs, release letters, indemnity letters, transport instructions and delivery instructions.
“The software is also designed to fit into the paper-free environment,” Koekemoer added. “It is fully SA Revenue Service (Sars) EDI-compliant with regards to the manifest acquittal system, and allows the client to have his manifests electronically submitted to Sars without the need for paper.
“Also, should the consolidator be doing
customs clearing as well, the seamless link between the forwarding and clearing file eliminates any duplicate capturing of information.”
Fulfilling another basic industry requirement is the comprehensive and fully automated sales representative reporting system.
“This allows you to assign multiple sales reps to a
client,” said Koekemoer, “define different commission percentages for different types of shipments, and indicate for each individual charge which revenue codes are commissionable, and which are not.”
The system then allows the user to view the sales representative commission report in four different formats ranging from a very detailed to a completely summarised format.
Said Koekemoer: “The bane of most business owners’ lives is to manually calculate commissions using spreadsheets, and then still have to fend off the usual disputes when your reps challenge your figures. This system makes compiling and auditing your sales commissions a walk in
the park.” It also has a feature
that is a valuable tool in a consolidator’s marketing strategy.
According to Koekemoer, choosing a report on volumes per route or per carrier, for example, gives the consolidator leverage in negotiations – allowing him to rank his clients and suppliers in business volumes.
“You can, for instance, at the click of a button, see how many 20-foot and 40-ft containers you shipped with a particular shipping line over a given period from a certain port of loading.
“It’s the type of comparative data that gives a consolidator that extra edge in negotiating the best rates.”
‘Choosing a report on volumes per route or per carrier gives the consolidator leverage in negotiations – allowing him to rank his clients and suppliers in business volumes.’
CONSOLIDATORS
FRIDAY June 26 2009 | 17
l o ci n t e rF R E I G H T S E R V I C E SFTW4372
The economic downturn has proved good for the consolidation business because the smaller volumes being shipped require breakbulk handling.
“Breakbulk is more common nowadays because factories are not filling full containers. Their orders are smaller. This is what we saw during the last economic downturn,” said Mark Snowball,” MD of RFB Logistics.
As a result, consolidators like RFB Logistics are seeing consistent business this year, though achieving this has required work.
“We’re at the other end of the phone all the time. There are big opportunities in the sub-contracting game nowadays. You have to keep an ear to the ground every day,” said Snowball.
The firm operates out of Durban and Johannesburg and has notched up 24 years’ experience in the consolidation field. Breakbulk containers arriving by ship at the port of
Durban are broken down at the company’s yard and loaded onto a fleet of 30 trucks for delivery to customers.
Another sign of the times is the rise in requests for quotes, as shippers seek accurate and economic forecasts to save time and money.
“I’m doing a lot more quoting nowadays since the economy has tightened up. 80% of our time is taken up by quoting, and 80% of the quotes go to transporters. They need the quotes for their clients,” Snowball said.
“A lot of people in our game don’t know how to quote. Or they won’t quote sight unseen. They want to see the cargo first. We’re also willing to go out on a limb with a quote. A customer may tell us by phone that the shipment is 3.5 tonnes and nine cubic metres. We quote for that. We stick to the quote when the shipment arrives and it’s seven tonnes,” Snowball said.“You go along with it, because at the end of the day it all evens out,” he said.
Durban sales and release operation upgradedBy James Hall
Consolidation shipments on key northern routes have not been drastically affected by the global economic climate, one groupage company reports.
“World Groupage Services is taking an optimistic view of the current economic situation on the basis that our volumes in our prime business – groupage out of the USA and UK – has held remarkably steady,” says director Alistair Heald.
Heald noted that FCL volumes had diminished over this time last year, particularly in automotive parts and related industries as is the case worldwide, and concurred with Tito Mboweni’s recent comments that dollar-based companies are taking
strain from the relative strength of the rand.
“All this considered, World Groupage Services has continued to offer a weekly service from the USA and UK into all four major ports in South Africa,” said Heald, whose company has offices in Cape Town, Durban and Johannesburg.
“We have over recent months decided to take a positive stance and have actually increased our staff complement, especially in the area of sales. We also continue to use the best possible method of transport for our clients such as road freight from the ports as opposed to rail, saving several days over the rail option and thus aiding in just in time management,” he said.
WGS has adjusted and
upgraded its Durban sales and release operation, looking forward to growth in that region. Over the past 12 months the company has upgraded its IT systems so that, following registration of a shipment, clients will be able to receive automatic email updates of any changes in the status of the groupage shipment in real time. The company website is also being redesigned to provide such useful information as conversion tables, incoterms and container specs, as well as offering interactive maps showing the geographical movement the cargo will take together with cut-offs and transit times.
“All of this will be available to our customers shortly,” said Heald.
CONSOLIDATORS
18 | FRIDAY June 26 2009
With more than 50 years of experience in South Africa, we are your dependable partner in transportation and logistics!
45 Offices worldwideStrong East African NetworkSpecializing in Project Management and General Cargo Services
•••
Spedag South Africa (Pty) Ltd., Johannesburg: +27 (11) 974 9772 Spedag (Uganda) Ltd., Kampala: +256 (41) 505 900 www.mrspedag.com
FTW1210SD
● Warehousing and distribution
●Daily Overnight express ●Clearing & Forwarding● From documents to 34ton loads● BFN - JNB - DUR
A strong US shipping market has ensured that a firm devoted to this route has been less buffeted by this year’s shipping business misfortunes.
“Basically we are the USA specialist and can move any cargo from the USA to South Africa. The USA market is strong, with the specialised commodities supporting
the exports out of the USA, which also means that no vessels have been laid up on the USA trade,” said Claude Nuttall, director of Cape Town-based United Maritime Logistics. He said these factors explained that while the general consolidation market had been down from 10% to 25%, with some companies registering as much as a 40% decrease in business, UML’s business
currently reflected an overall decline of only around 5%.
“We have been fortunate to have new business make up for any decline in existing business. Imports have been steady with some months being up on last year’s figures and some months being in line or slightly down,” Nuttall said.
“The USA trade has been hit especially hard over the last couple of years with
GRIs. Recently on other routes the rates have come down, and this doesn’t make it easy for us to explain to our clients when a GRI has been announced,” he said.
Despite the increases, Nuttall noted, “The only significant market decline is being noticed with clients that used to import perhaps 2 x 40 foot containers, who now opt to import 1 x 40-footer with
1 x 20-footer.”United Maritime Logistics
is the agent for Direct Container Line, USA, and while the company speciality is LCL cargo from the US to SA’s four major ports, FCL service is also offered.
“We recently moved some specialised machinery from the USA to Durban on breakbulk vessels. We also handle out of gauge cargo,” he said.
‘Namibia could be heading for a downturn’By James Hall
For the consolidation firm that has become a Namibia specialist, the year has seen about average volumes. But intimations of an imminent Namibian economic decline abound.
"Business has not been bad this year, but Namibia
may be facing a down cycle as is South Africa. A lot of projects have been put on hold. Cash borrowing is hard," Gordon Jay, director of Transworld Roadfrieght said of some telltale indicators.
"Namibia's economy is closely tied to South Africa, coupled to the
same Reserve Bank, and the currencies have the same value. That lends stability. But Namibia has its own shipping needs," said the consolidator whose expertise along the Trans-Kalahari Corridor has established his reputation for shippers of breakbulk cargo going to
and from Gauteng and Namibia. Transworld has its Johannesburg offices in Spartan, and its Namibian office in Windhoek.
"We handle all types of general cargo, going both ways. One of the areas where we do well is the movement of bonded cargo.
At present we seem to be transporting a lot of ship spare parts in bond. These come to Johannesburg from all over the world, and we take them to Walvis Bay by road," said Jay. All the collection as well as long haul vehicles are company owned.
OVERBORDER CONSOLIDATIONS▲ Roadfreight into Southern
and Central Africa▲ Full loads ▲ Hazardous cargo ▲ Confirmed daily tracking▲ Dedicated express loads
Higher volumes of damaged cargo a worrying trendBy Joy Orlek
Higher volumes of LCL rather than FCL cargo is clearly the trend in the current recessive economic climate, but with it comes another worrying trend – an increase in volumes of damaged cargo, says Cargocare Freight Services’ Sue Wood.
“The LCL market is doing well because more people are bringing in smaller quantities more often.
“But because of the move away from FCLs, a number of co-loaders are co-loading with other consolidators which means you could end up with two or three co-loaders all as part of one container shipment. And when co-loaders can’t find enough cargo to fill the container, you then end up with half empty containers which leads to higher quantities of damaged cargo than ever before.”
The result is that shippers who are not moving particularly
vulnerable cargo and who have never had claims before are now facing this additional burden.
“We hand-pick our co-loaders, which is why until now we’ve had a very clean record in terms of damages as far as risk control is concerned. But because of market trends there’s little we can do about it.”
Wood’s reading of the market is very much in tune with industry consensus.
“Despite the trend to LCL cargo, volumes are definitely down – not only in terms of the number of shipments but in terms of contents. “Tonnage is probably down by 50% but the actual number of shipments is only down by 20%. People are still bringing in cargo but they’re bringing in a lot less – and that’s across the board.”
According to Wood, Cargocare doesn’t have a lot of exposure to retail, which was by design rather than by accident.
“We’ve got some very specific cargo coming from
the Far East and those volumes seem to be maintaining, but that only accounts for about 50% of cargo from the region – the other 50% is down significantly.”
And while the market outlook for now remains flat, Wood says that keeping up staff morale is a key focus.
“We’re doing loads of training
and are preparing ourselves for the imminent implementation of Part 108 security regulations.
“Sales activity continues apace. Like other players, we are hungry to fill some of the gaps that have developed over the last few months, but we are confident that this will begin to bear fruit very shortly.”
Indian automaker looks at local assemblyThe cost of shipping in completely assembled motor vehicle imports has persuaded the big Indian auto-maker, Mahindra and Mahindra, to look at local assembly from early next year, according to Ashok Thakur, the new CE of Mahindra SA.
Currently, the cost of shipping a container with three completely built-up (CBU) Mahindra vehicles from India to SA is about US$1 000, and US$1 500 to West Africa.
And, according to Thakur, 95% of parts for Mahindra vehicles sold in SA are already either distributed or manufactured locally – so local assembly fits the scene.
The company is focusing on using a local OEM (original equipment manufacturer). “There has always been extra capacity available,” Thakur said.
Sue Wood ... ‘Keeping up staff morale is a key focus.’
20 | FRIDAY June 26 2009
FTW1638SD
Your BBBEE logistics partnerSpecialising in:Same-day deliveriesSpecial ProjectsOverborder CargoVehicle Hire65-strong fleetContact Mark Scott 082 557 4869 [email protected] de Villiers 082 573 0595 [email protected] www.ngllogistics.co.za
FTW4387 FTW4339
● Specialising in cross border freight to Zambia/ Zimbabwe/Mozambique/Botswana/DRC● Own fleet – Super links● Hazchem certified
Speak to Paul or Allan Tel: +27 11 609 2612 Fax: +27 11 609 2580E-mail: [email protected]
Customs feels the pinch as trade volumes plummetMagashula calls for faster and smarter logistics
By Liesl Venter
Trade volumes dropped by a staggering 21% between October and December last year while the value of trade essentially halved between July 2008 and January this year.
According to acting South African Revenue Service (Sars) Commissioner Oupa Magashula, customs revenue collections were down by 20% in February this year compared to the same period in 2008.
Speaking at the annual South African Association of Freight Forwarders (Saaff) congress in Johannesburg recently, Magashula said it was important that the country focus efforts on facilitating existing trade, protecting the economy from unfair competition and ensuring that industrial policy was effectively implemented.
“It is essential that smarter logistics becomes the key feature of our international
supply chain, with reduced costs, improved turnaround times and greater Sars efficiencies,” said Magashula. “A reduction in our trade volumes knocks on in terms of lower actual and potential revenue collection. Economic crises also precipitate threats of evasion, avoidance and abuses of existing schemes and regimes, as distressed entities seek to cut down on overheads or shore up the bottom-line.”
He said it had become
imperative that South Africa harmonise its approach to world best practices while supporting process improvements that will ensure smarter and faster logistics.
According to the 2007 World Bank Competitiveness Survey, South Africa ranked a reasonable 24 out of 150 countries in logistics competitiveness ahead of China which came in at 30 and India at 39. In terms of Customs procedures South Africa was
27 out of 150 while in terms of international shipping the country ranked 22 overall.
“What we took from this survey was that supply chain efficiency can improve overall logistics competitiveness providing an important lever to support economic growth,” said Magashula. “It therefore necessitates a comprehensive design approach to enable the movement of goods rapidly, reliably and cheaply from point to point.”
The Port of East London ... volumes down across the board.
FRIDAY June 26 2009 | 21
FTW1714SD
FTW1610SD
Understanding Shipping
Foundation Diploma
Advanced Diploma
Qualifying Examinations
Skills Courses Offered Every Month
FET Certificate in Shipping
• Basic introductory course
• Two subject intermediary course
• Two subject progressive course
• Seven subject course, professional qualification
‘Smaller forwarders the most vulnerable’By Liesl Venter
The freight forwarding industry is working hard to prove its resilience in the face of the global economic downturn as orders continue to be cancelled and considerably fewer goods are moved.
According to Basil Pietersen, chairman of the South African Association of Freight Forwarders (Saaff), the market has become much smaller with large and small operators feeling the pinch.
“It is the smaller operators who are really bearing the brunt as they do not have the benefit of large cash flows and funding. The industry will need to work hard to prove its resilience and forwarders will need to be highly strategic in their short- and long-term planning to survive the crunch and adapt to change.”
According to a report by Research and Markets, an international research
resource, freight forwarding has been one of the most successful sectors of the global logistics industry over the past decade, achieved largely due to the trend of globalisation which has led manufacturing to relocate to remote markets around the world.
The development of economies such as China, Russia and India has also created a demand for international forwarding services. But there is no doubt that the credit crunch has brought an end to a prolonged period of growth.
Speaking at the annual Saaff congress recently, Pietersen said it was important that local forwarders were aware and at the forefront of international events and trends impacting business.
“We function within an industry that is hugely dynamic and constantly undergoing changes that have a profound effect on the way that we do business.”
Busa revives idea of freight focus groupBy Liesl Venter
Business Unity South Africa is set to meet with ministers and other roleplayers over the next few months in an effort to address issues of concern.
These include resuscitating a focus group to discuss the movement of freight with key government officials, said Busa CEO Jerry Vilakazi.
Speaking at the annual South African Association of Freight Forwarders Congress in Johannesburg recently, Vilakazi said this group had been in discussion with government for some time. “We hope to resuscitate this group with the new government now in place,” he said. “It is critical to engage with the various government departments such as Sars, DTI and Transport. Aspects such
as policy coordination and implementation and infrastructure upgrades remain topics that need to talked about.”
He said therefore it was important for Busa to have a representative on the Sars/Customs forum, to monitor the development of these agencies, the changes they proposed and the impact they have on business.
“We represent business and freight forwarders like yourselves are businesses and therefore we represent you. We ensure that the voice of business is heard and that there is input on a variety of levels.”
He said whether it be the impact of the global economic crisis or Eskom’s proposed 34% tariff increase or the Competition Act, it was about making sure business had the opportunity to raise its
concerns in decisions affecting them.
“Many Saaff members are involved in the day-to-day trading in the SADC region and your input to us is important as we facilitate trade in the region.”
Jerry Vilakazi ... critical to engage with government departments.
between RSA & WindhoekQuality overnight roadfreight express service
● Own clearing offices at borders● Any size cargo● Refrigerated trucking
● 15 Years Experience● 3 Departures per day● Distribution in Namibia
Last year’s test drive of roll-on, roll-off (ro/ro) car carriers into Maputo has proven successful, and Höegh Autoliners is soon to have vessels from two trades calling at the Mozambique hub port.
The first is the already-established monthly run on the Europe-SA-Mozambique-Indian Ocean Islands (IOI)-Australia trade – with an extensive port rotation of:
Amsterdam, Bremerhaven, Antwerp, Le Havre, Southampton, Santaber, either Port Elizabeth or East London, Durban, Maputo, Tamatave, Reunion, Port Louis, Fremantle, Melbourne, Port Kembla (near Sydney), and Brisbane.
With what it complained were “logistical challenges in SA ports and a lack of terminal infrastructure”, Höegh Autoliners decided to add Maputo to this schedule from last September – in a
trial run lasting until March this year.
One of the attractions at the Mozambique port, according to customer services manager for Africa, Fernanda da Souza, was the new car terminal that has been in operation in Maputo since the end of 2007.
“The market showed considerable interest in making use of these facilities as a complement to Durban port and its car terminal,” she told FTW. “The volumes
are still enough to keep us interested, and we intend to keep this monthly service running for another six months.”
Also, the Norwegian vehicle carrier operator is about to enter the trade between the Middle East, India and Africa – with an initial sailing scheduled for the first week of July, and catering for both rolling and static cargo.
The monthly sailings are due to call at Jebel Ali,
Mumbai, Chennai, Colombo, Maputo, Luanda, Lagos and Tema.
“Further ports can be added subject to inducement,” said De Souza. “And, by transhipping on to our other established service, there is also a connection with IOI and Australia.”
However, at the moment, the line is only off-loading vehicles at Maputo, with no export cargo of any note yet going through the port, she added.
The Port of Maputo ... providing complementary back-up for busy SA ports. Photo: James Hall.
FRIDAY June 26 2009 | 23
Last week’s top stories on
somali pirates widen their netSomali pirates have seized a German-owned cargo ship off Oman, reports news agency Reuters, the first recorded attack in waters so far away from their usual Somali coastal habitat.
Busa welcomes debate on public corporationsBusiness Unity SA (Busa) has welcomed the opening of a debate on the role of public corporations, following the statement by minister of public enterprises, Barbara Hogan, on selling off unprofitable state enterprises.
In a statement the organisation said, given the changed economic circumstances in the country resulting from the global economic downturn, it was time to take a much-needed look at the functioning and efficiency of state enterprises on a case-by-case basis.
DHL offers innovation awardDHL is once again offering its innovation award – which, says the express carrier, gives young logistics scientists the opportunity to gain attention for their practical logistics solutions. The competition opened on June 10 and closes on July 20 and is looking
for creative solutions that are focused on customer needs
Fuel prices lose business for Cape routeThe increased fuel prices have prompted carriers to drop the Europe-Asia eastbound routings via
the Cape of Good Hope, according to the AXS Alphaliner newsletter. Several services that were routed via the Cape since early January this year to avoid Suez Canal fees have recently been brought back to the Suez.
Ct terminal prepares for the futureThe R4.2-billion expansion project at the Cape Town container terminal has ensured it is better prepared for when the global market picks up again in the near future, according to Oscar Borchards, Transnet Port
Terminals (TPT) business unit executive. “The ongoing expansion works and procurement of state-of-the-art equipment will see the country’s second largest container terminal ramping up its capacity over the next five years,” he told FTW.
Fitting into the good news category at a time when slumping airfreight volumes tend to fill the page is Emirates SkyCargo – pleased to be able to report that the SA operation has seen a 43% growth in outbound cargo volumes.
“With 99 cities in 61
countries on six continents directly serviced by Emirates SkyCargo,” said Kum Naicker, Emirates’ SA cargo manager, “there are always new business opportunities.”
Johannesburg and Cape Town are presently the markets feeding SkyCargo – but with Durban due to be added into the mix from October 1.
From that date, SkyCargo will launch its third daily service from SA to Dubai – and, with Durban added, it will become the 18th destination offered by Emirates in the African network.
Naicker expressed himself confident that Durban would pay its way in air cargo volumes.
“Looking back at the introduction of Cape Town in 2008 there was a marked
contribution to the increased growth in the country’s outbound cargo volumes,” he told FTW. “It is fair to expect that Durban, SA’s largest port city, will also add considerably to cargo capacity.”
The Dubai-Durban route will be serviced by the Airbus A330-200, capable of carrying up to 14-tonnes of cargo in the belly-hold of the passenger aircraft.
“At first,” said Naicker, “Emirates will be f lying into Durban International Airport and then to King Shaka International Airport, once complete.
By the close of 2009, Naicker expects the capacity figures to be as follows: • Johannesburg: three f lights per day, with 20-t capacity per aircraft for both inbound and outbound flights using
the Boeing 777-300; • Cape Town: one f light per day with 20-t capacity both inbound and outbound, using the Boeing 777-200; • Durban: one f light per day with 14-t capacity in and out using the Airbus A330-200.
“While the air cargo market has been severely affected by the global economic crisis, we are still cautiously optimistic about its recovery beginning to start towards the last quarter of this year,” said Naicker.
Promise of the good life keeps Somali piracy buoyant‘Many women fantasise about marrying a pirate’
By Ray Smuts
As many ship owners continue to pay pirate ransoms in order to protect crew, cargo and vessels from harm, piracy has probably become Somalia’s most lucrative ‘profession’, netting US$150 million last year alone.
What started out as rag-tag bands of seagoing robbers has become a highly sophisticated, well-coordinated industry as pirates invest their ill-gotten gains in more sophisticated weapons, navigation equipment, strike craft…even military-style camouflage dress.
Johan Swart of Shepstone and Wylie Attorneys in Cape
Town gave The Maritime Law Association of South Africa’s annual general meeting a fascinating insight into just where the ransom money goes.
Pirates actually involved in a hijacking get to keep 30%, pirate bosses receive 20% and government officials 30%, while 20% is spent on future operations.
Pirates collect an average ransom of US$2 million per hijacked vessel and are known to look well after captured crews, right down to supplying food from special kitchens if they are assured a ransom will be paid.
Piracy has become “socially acceptable” in Somalia, in many
ways enjoying the support of most coastal village communities and the admiration of many women who fantasise about marrying a pirate.
Lavish la dolce vita lifestyles include large houses, top of the range vehicles and expensive women. “They have money, power and they are getting stronger by the day,” observes Swart.
There was a total of 180 reported piracy incidents off the Somali coast in 2008, the number of actual attacks 115, of which 46 were successful hijackings.
Attempted but foiled hijackings came to 69 and suspicious
approaches which did not result in actual attacks to 65, for an overall success rate of 40%.
Successful hijackings were at their highest level in August (70%), declining to 48% in September, 28% in October, 42% in November and 25% in December.
The success rate of Somali pirates was at its highest in the Gulf of Aden, 45% in April this year, and 39% in the Indian Ocean the same month.
Last year, 11 crew were killed, 32 injured, 21 declared missing and 42 kidnapped for ransom.
Tankers, bulk carriers and cargo ships were initially the major targets but Somali pirates
are clearly intent on richer pickings, targeting several large luxury yachts and at least six cruise liners, including MSC Melody – well-known in South African ports – over the past year.
Swart says the individual results of Somali piracy makes it likely that the scourge will spread to more areas globally. He believes the increasing threat is bound to discourage seafarers from continuing their profession. The seafarer shortfall, already at 34 000, is expected to increase to 83 900 in 2012.
While global awareness of Somali piracy has increased, how to successfully deal with them has yet to be defined.
FT
W24
67
lee botti & associatesSPECIALISTS IN THE RECRUITMENT OF STAFF FOR THE LOGISTICS INDUSTRY
EXCELLENT EX-PAT FAMILY PCKGAssume full responsibilities for ops & financials of large
marine logistics operation. Requires individual with extensive hands on portside/ship repairs exp combined with financials + management background. Superb international exposure
guaranteed.Tel: Kim (011) 452-0204
BUSINESS DEVELOPMENT MANAGER - AFRICA CAPE TOWN
R650 000 Senior role requiring proven general manager with a flair for
new business dev. Assume absolute control for local market plus development into Africa utilizing your previous reefer exp. Drive &
execute key customer sales & provide complex supply chain solutions. Regular travel into area required. Proven b/ground in perishable
shipping, solid contacts in the industry secures this gem of a job. Tel: Sabina (021) 418 1084
CLIENT SERVICES MANAGER GAUTENG
R420,000 neg Excellent opportunity with rapidly expanding concern taking the
industry by storm. Your sound operational knowledge, combined with client services skills & prev mngt exp sought to oversee
large team & ensure service excellence maintained. Tel: Kim (011) 452-0204
FINANCIAL MANAGER LUANDA, ANGOLA
Impressive Ex Pat Pkg Chartered accountant with strong financial management b/ground
sought for this high profile role. Strategically minded industry expert with knowledge of freight disbursement accounts. Portuguese
speaking highly adv. Thriving city in the heart of flourishing Africa, top perks on offer.
Tel: Sabina (021) 418 1084
BUSINESS DEVELOPMENT MANAGER GAUTENG
R560,000 neg Exciting & challenging opportunity with well established agent. Requires goal driven, passionate & focused indiv with proven
sales + mngt b/ground in C&F to develop new business & routes, negotiating & liaising at executive level. High profile,
vital role. Tel: Kim (011) 452-0204
SALES MANAGERDURBAN
R420 000 – R540 000 CTCDevelop new markets & target blue-chip clients as a top priority for this elite warehousing & logistics company. Form part of executive team & drive sales force to sell specific solutions whilst building
relationships with senior executives. Role ideal for degreed graduate with sound understanding of supply chain & logistics
concepts, proven track record of delivery.Tel: Jill (031) 201-8330
BRANCH MANAGERDURBAN
R400 000– R450 000 CTCYour specialised citrus background is in huge demand! Top-notch cold storage facility requires the expertise of a service-orientated manager to co-ordinate the activities of the different departments. Knowledge of vessel planning essential, and familiarisation of the
citrus steri process would be a distinct advantage. Tel: Jill (031) 201-8330
AFRICA DEVELOPMENT MANAGER GAUTENG
R420,000 neg Energetic, driven individual sought by multinational C&F agent to focus on business dev into ever changing Africa. Extremely sales focused, good operational understanding & able to travel
regularly into the area - key for this exciting & diverse role. Tel: Kim (011) 452-0204
Emirates records 43% growth in outbound volumesD
urba
nC
ape
Tow
n
$456
$478Last week
This week
$456No price
available at time of going
to print
june 12
SUCCESSFUL HIjaCKInGs Aug Sept Oct Nov Dec
70% 48% 28% 42% 25%
Kum Naicker ... optimistic about fourth quarter recovery.
COMPILED AND PRINTED IN ONE DAY
22Updated until 11am June 2009
Updated daily on Cargo Info Africa – www.cargoinfo.co.za
INBOUND BY DATE - Dates for sailing: 29/06/2009 - 13/07/2009
Abbreviations of Lines and AgentsASI Asiatic (Hull Blyth)ASL Angola South Line (Meihuizen International/Seascape cc)BEL Beluga Shipping (Mainport Africa Shipping)CHL Consortium Hispania Lines (Seaclad Maritime)CMA CMA-CGM (Shipping Agencies)CMZ Compagnie Maritime Zairose (Safmarine)CSA Canada States Africa Line (Mitt Cotts)CSC China Shipping Container Lines (Seaclad Maritime)CSV CSAV (CSAV Group Agencies SA)COS Cosren (Cosren)DAL Deutsche Afrika Linien(DAL Agency)DEL Delmas Line (John T Rennie)DML Debala Mozambique Line (Mainport Africa Shipping)DSA Delmas ASAF (Century)ESA Evergreen Agency (SA) (Pty) LtdESL Ethiopian Shipping Lines (Diamond Shipping)FAY Faymon Shipping (Sea-act Shipping cc)GAL Gulf Africa Lines (King and Sons)GCL Global Container Lines (Freightmarine)GRB GearbulkGSL Gold Star Line (Polaris Shipping)HLC Hapag – LloydHMM Eukor (Diamond Shipping)HSD Hamburg Sud South AfricaHSL H Stinnes Linien (Diamond Shipping)
HOEGH Hoegh Autoliners (ISS Voigt)INM Intermarine (Mainport Africa Shipping)IRISL Islamic Repubic of Iran Shipping Lines (King & Sons)IVS Island View ShippingKEE Keeley Granite (Tern Shipping)KLI K.Line (Freightmarine)LAU NYK Cool Southern AfricaLMC Ignazio Messina (Ignazio Messina)LNL Laurel Navigation Line (Polaris Shipping)MAC Macs (King & Sons)MAL Mainport Africa Container Line (Mainport Africa Shipping)MAR Marimed (Marimed Ship.)MAS Mascot Line (Marimed)MBA Maruba (Alpha Shipping)MAS Mascot Line (Marimed Shipping)MAU Mauritius Shipping Corporation (Alpha Shipping)MISC MISC Line (Bridge Marine)MSC Mediterranean Shipping Co. (MSC)MSK Maersk LineMOL Mitsui Osk Lines (Mitsui Osk Lines)MOZ Mozline (King & Sons)MUR MUR ShippingNDS Nile Dutch Africa Line B.V. (Nile Dutch South Africa)NVQ Navique (Tall Ships)NYK (Mitchell Cotts – NYK Agency)
PAL Pan Africa Line (Seaclad Maritime)PHO (Phoenix Shipping)PIL Pacific International Line - (Foreshore Shipping)Pro ProLine (Bridge Marine)PRU Prudential Line (Alpha Shipping)Saf Safmarine (Safmarine)Sch Southern CharteringSCI Shipping Corp of India (Combine Ocean)SCO Sea Consortium (Bridge Shipping)SHL St Helena Line (RNC Shipping)SMU Samudera Shipping Line (African Marine Ships Agency)SSI Seacape Shipping Inc (Century Ships Agency)TOR Torm Line (Diamond Shipping)TSA Transatlantic (Mitchell Cotts)UAF United Africa Feeder Line (Seaclad Maritime)UASC United Arab Shipping Company (Seaclad Maritime)UCL Ocean Africa Container Lines (Unicorn)UNG Unigear (Gearbulk)Wes Wesborn Maritime (Seaclad Maritime)WWL Wallenius Wilhelmsen (Barwil)Zim Zimstar (Zim Southern Africa) * Notice any errors? Contact Peter Hemer on Cell: 084 654 5510/Fax (011) 704-3015
To: Indian Ocean Islands Updated daily on http://www.cargoinfo.co.za
The Business Model and a Look into the FutureLow-Cost Airlines
2 July 2009, 12h00-16h00
Many thanks to our sponsors:Arivia.kom (www.arivia.co.za)
University of Johannesburg (www.uj.ac.za)Digicore (www.digicore.com)
FTW (www.ftweekly.co.za)
Agenda:12h00 - 13h00 Registration, snacks and networking
13h00 - 13h15 Welcome: Prof. Jackie Walters Head: Department of Transport and Supply Chain Management University of Johannesburg
13h15 - 13h45 Paid sponsor presentation (TBC)
13h45 - 14h00 The Business Model for Low-Cost Airlines Mr Glenn Orsmond Chief Executive Officer 1Time Airline
14h00 - 14h15 Challenges in the Current Market Mr Gidon Novick Chief Executive Officer(Joint) Comair Ltd./Kulula.com
14h15 - 14h30 Challenges in the Future Market Mr Nic Vlok Chief Operating Officer Mango Airlines
14h30 - 15h15 Panel Discussion chaired by Professor Jackie Walters
15h15 - 15h30 Lucky Draws (Winners must be present) Proudly sponsored by arivia.kom and Kenna Consulting
www.transportsig.com
Attendance is free but registration is essential.
Venue: The School of Tourism and Hospitality (University of Johannesburg),
Bunting Road, Auckland Park
To register for this event, visit: www.transportsig.com Kindly register as soon as possible to avoid disappointment. Cancellation Policy: A penalty fee of R228 (Including VAT) will be charged if you book and do not attend without cancelling at least 24-hours prior to the event. Substitution is acceptable. Cancellations should be made by email: [email protected] or fax: 086 530 6431.Should you experience any difficulties during the online registration process, kindly email the attendee's name, surname, postal address, company name, mobile number and email address to [email protected] with "Booking: 2 July 2009" as the subject of the email. Please note that only when the administrator has replied to an email can the booking be considered as confirmed.
FTW4443
FREIGHT & TRADING WEEKLY
Name of Ship/Voy/Line WBAY CT PE EL DBN RBAY Loading forMaersk Jambi 003 MSC/MSK/SAF - 30/6 - - - - NYC 22/07,BAL 24/07,ORF 25/07,CHU 27/07,FEP 28/07,NAS 29/07,MIA 30/07,POP 30/07,MHH 30/07,GEC 31/07,SDQ 31/07,TOV 31/07,