The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription FRIDAY 21 May 2010 NO. 1911 FREIGHT & TRADING WEEKLY MAKING THE WORLD A SMALLER PLACE VISIT: WWW.KAPELE.CO.ZA Warehouse 1 & Office Block D3 Isando Industrial Park Gewel Street, Isando Tel: + 27(0) 11 398 4900 Fax: + 27 (0) 11 392 1058 [email protected]FTW1391 FTW1923SD Truckers out of work, ships idle in Cape Town BY Ray Smuts Hundreds of Western Cape hauliers are out of work as a result of the Transnet worker strike, a “total disaster” for the Mother City, says Cape Town Harbour Carriers Association chairman, John Berry. “The situation is frightening. Truckers are standing around not making any money, ships lie idle and the Cape Town container and combi-terminals remain closed, which renders it impossible for us to collect or deliver containers,” says Berry, who started life as a trucker in the 1970s. Harbour Carriers Association founder member, Peter Newton, was incensed at trying to exit the port through the Heerengracht gate at 5.40 a.m. on Thursday, to find it closed. He only learnt on returning to office that an NPA official had advised of the closure by e-mail after close of business the previous evening. Newton, in a letter of complaint to Barbara Hogan, minister of public enterprise; Jeremy Cronin, deputy minister of transport, and other senior officials, urged the gate be reopened without further delay, saying: “Such arbitrary, thoughtless, action is nothing short of plain, downright, stupid, not to mention dangerous.” Berry says NPA and TPT management tried their level best to assist truckers, regrettably without much luck. Three-month backlog looms BY Alan Peat Imorters and exporters face their biggest transport crisis since the Second World War. The labour strike at Transnet, now in its second week, is starting to take its toll and with no end in sight the cost to the economy is estimated to be billions. The unions, the SA Transport Allied Workers Union (Satawu) and the United Transport and Allied Trade Union (Utatu), said in a joint statement on Monday that the strike “is set to intensify, with no resolution in sight”. And, although no-one will venture to place an exact amount on it, all are agreed that the SA economy is now facing a multi-billion loss. The strike doesn’t directly affect airfreight or courier/ express movement of goods, but it does directly impact on the shipping lines and seafreight sectors, and some 80% in value (but even more To page 12 The ongoing Transnet strike has brought many of the ports in the country, like Ncqura, Durban and Cape Town, to a near standstill as unions and management battle over a wage dispute. Nightmare scenario of 50 waiting ships plays out
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The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscriptionFRIDAY 21 May 2010 NO. 1911
FREIGHT & TRADING WEEKLY
C M Y CM MY CY CMY K
M A K I N G T H E W O R L D A S M A L L E R P L A C E
Truckers out of work, ships idle in Cape TownBy Ray Smuts
Hundreds of Western Cape hauliers are out of work as a result of the Transnet worker strike, a “total disaster” for the Mother City, says Cape Town Harbour Carriers Association chairman, John Berry.
“The situation is frightening. Truckers are standing around not making any money, ships lie idle and the Cape Town container and combi-terminals remain closed, which renders it impossible for us to collect or deliver containers,” says Berry, who started life as a
trucker in the 1970s.Harbour Carriers
Association founder member, Peter Newton, was incensed at trying to exit the port through the Heerengracht gate at 5.40 a.m. on Thursday, to find it closed.
He only learnt on returning to office that an NPA official
had advised of the closure by e-mail after close of business the previous evening.
Newton, in a letter of complaint to Barbara Hogan, minister of public enterprise; Jeremy Cronin, deputy minister of transport, and other senior officials, urged the gate be reopened without
further delay, saying: “Such arbitrary, thoughtless, action is nothing short of plain, downright, stupid, not to mention dangerous.”
Berry says NPA and TPT management tried their level best to assist truckers, regrettably without much luck.
Three-month backlog loomsBy Alan Peat
Imorters and exporters face their biggest transport crisis since the Second World War.
The labour strike at Transnet, now in its second week, is starting to take its toll and with no end in sight the cost to the economy is estimated to be billions.
The unions, the SA Transport Allied Workers Union (Satawu) and the United Transport and Allied Trade Union (Utatu), said in a joint
statement on Monday that the strike “is set to intensify, with no resolution in sight”.
And, although no-one will venture to place an exact amount on it, all are agreed that the SA economy is now facing a multi-billion loss.
The strike doesn’t directly affect airfreight or courier/express movement of goods, but it does directly impact on the shipping lines and seafreight sectors, and some 80% in value (but even more
To page 12The ongoing Transnet strike has brought many of the ports in the country, like Ncqura, Durban and Cape Town, to a near standstill as unions and management battle over a wage dispute.
Nightmare scenario of 50 waiting ships plays out
FREIGHT & TRADING WEEKLY DUTY CALLS
Editor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterAdvertising Carmel Levinrad (Manager)
Yolande Langenhoven Gwen Spangenberg Jodi Haigh
Divisional head Anton MarshManaging 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 May 21 2010
3rd 2010 Supreme Court of Appeal customs caseIn earlier columns this year, we informed of the three (3) Supreme Court of Appeal customs cases to be heard during the first quarter this year.
The first case to be heard on 16 February 2010 was the Commissioner for the South African Revenue Service (SARS) versus Fascination Wigs (Pty) Ltd; the second case on 18 February 2010 was 3M South Africa (Pty) Ltd versus Commissioner for SARS and another; and the third case on 15 March 2010 was AMI Forwarding (Pty) Ltd versus Government of South Africa (Department Customs and Excise) and another.
We have in subsequent columns informed of the first two judgments. The third judgement, however, was delivered on 03 May 2010, but only just released for
public information. The case relates to the
liability under Section 18 (“Removal of Goods in Bond”) and Section 18A (“Exportation of Goods from a Customs and Excise Warehouse”) of the Customs and Excise Act (“the Act”), as to whether a clearing and forwarding agent had proved that it was not liable for the payment of duties.
The matter originates in October 2000 when SARS demanded that AMI Forwarding (Pty) Ltd pay customs duties in respect of three bills of entry that had been falsely acquitted. In May 2010 a second demand was made in respect of 68 bills of entry, with the allegation that bills of entry had not been acquitted. In October 2002 a third demand was made, but this time it was made in respect of 49 bills of entry in the second demand, a SARS employee having found the
acquittals in respect of 19 bills of entry referred to in the second demand.
The issue in question relates to the SARS allegation of falsified acquittals, which raises the question as to who bears the onus of proving the falsification? According to the judgment, when SARS alleged fraud, which it did in the plea, it had to prove that the bills of entry had been falsely acquitted. The judge indicated that he could see no reason why the onus of proving fraud should shift from SARS to AMI Forwarding (Pty) Ltd. Thus once AMI Forwarding (Pty) Ltd had proved the acquittal, then SARS had to prove its allegation. SARS was not able to do so.
As a consequence the judge determined, in AMI Forwarding (Pty) Ltd’s favour, that it had discharged the onus of proving that the bills of entry had been acquitted and that it was not liable for the payment of customs duties. The appeal was upheld with costs, including those of the two counsels.
Rebate item – the manufacture of paintballsThe creation of a Rebate Item (also known as a “rebate provision”) for polyether-polyols containing two or more hydroxyl groups, liquids or pastes, with hydroxyl number exceeding 100mg KOH/g but not exceeding 800mg KOH/g used in the manufacture of paintballs. The tariff investigation lodged by Bulls Eye Paint Balls CC, was published in the Government Gazette of 23 October 2009. The investigation took 203 days to complete.
Draft rule amendments for commentOn 14 May 2010 SARS published draft Rule amendments to the Customs and Excise Act for wine on line. Comments are due by 28 May 2010.
Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.
A weekLY summary of the main changes to the South African tariff dispensation and amendments to customs and excise legislation. email [email protected].
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Your fastest route to Africa South Africa - Angola (SAWA) Durban • Cape Town • Pointe Noire Luanda • Lobito • Namibe • Cabinda Matadi • Boma • Soyo • Libreville • Douala
South Africa - West Africa (SWAX) Durban • Lome • Tema • Lagos Main port China via SA-Angola
South Africa - Far East (SWAX) Durban • Singapore • Shanghai • Shekou
Europe - West AfricaEast Coast South America - West Africa
Hoëgh Autoliners has appointed Bollore Africa Logistics as its agent in sub-Saharan Africa, excluding South Africa. The representation covers port agency, sales, customer services and logistics and comes in to effect on June 1.
It’s a logical development, says Per Folkesson, head of South Asia, Oceania, Middle East and Africa, “Hoëgh Autoliners began services into South Africa in 1993. Services to West Africa followed soon after, with a subsidiary office opened in Johannesburg in 2004.
“From early 2010 we opened up a service route from the Far East to southern and West Africa which means we now cover West, Southern and East Africa from any of our main loading areas which include North America, Europe, Middle East and India and Far East, including South East Asia.
Having created a comprehensive service network, the time was right to appoint a regional agency network, he added.
With 50 years’ experience on the continent, Bollore Africa Logistics is represented in 41 countries with 200 branches.
French line adds muscle in NamibiaBy Alan Peat
Walvis Bay in Namibia is seen as “a strategic transhipment” port for Asia-West Africa services, according to Rhett van Zyl, MD of CMA CGM Shipping Agencies SA.
“To support the growing demands in West Africa, where it represents the two lines CMA CGM and Delmas, the group opened a new agency in Namibia on May 1,” he told FTW.
The subsidiary, CMA CGM Shipping Agency
Namibia, is managed by Florian Nittscher, and currently has a staff of five.
“But,” said Van Zyl, “that will eventually increase to around a dozen.”
The port acts as a hub for the group’s Asia-West Africa lines (WAX and MIDAS) and for feedering in West Africa (WAF).
Walvis Bay is also an entry port for three corridors, with main roads leading into a number of destination points in the southern sub-continent.
The Trans-Kalahari
corridor offers connections to Gaborone in Botswana, and to Pretoria and Johannesburg. Meantime, the Trans-Caprivi links the port to Zimbabwe, Zambia and the Democratic Republic of Congo, while the Trans-Cunene runs into southern Angola.
CMA CGM Shipping Agency Namibia branch manager Florian Nittscher (left) and operations manager Denis la Goff.
GAC Laser handles record citrus volumesNew dispensation by PPECB facilitates growthBy Alan Peat
A record quantity of 2 800 000 cartons of Valencia oranges have just been handled and stored by GAC Laser’s Durban branch over an eight week period.
The significance of this number, according to CEO Simon Hayes, was that the procedure complied with a new timing sequence, the result of a dispensation just introduced by the Perishable Products Export Control Board (PPECB).
“Prior to 2010 a strictly controlled cold chain was required for all fruit exports
out of SA, adding significant cost to the logistics chain.
“In order to reduce these costs, and allow SA citrus into the more lucrative European, Middle Eastern and Far Eastern markets at much more competitive prices, the PPECB now allows certain citrus produce, including Valencia oranges, to be handled and stored at ambient temperatures. This provided that the fruit is packed into reefer containers or vessels within 10 days of inspection at the farms or pack houses.”
It presented GAC Laser with a new market opportunity, and the company
entered the citrus export market this year.
“We targeted this market for the first time this season, and secured 40 000-pallets (2 800 000-cartons) over an 11-week period,” Hayes added.
Keeping a keen eye on the procedure, a PPECB officer is stationed at the premises to ensure that the 10-day protocol is not breached.
“We believe that team planning and communicating effectively with the growers, transporters, vessel lines and local authorities is a must if you want to take advantage of this new and exciting logistics offering,” said Hayes.
4 | FRIDAY May 21 2010
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Freight ring concept will facilitate Gauteng’s rail ambitionsBy Liesl Venter
The development of a freight ring concept for Gauteng remains a high priority for Transnet Freight Rail.
Speaking at the monthly Transport Forum in Johannesburg recently, Deidre Strydom, senior manager capital planning for Transnet, said with Gauteng being the economic hub of the country it was important to develop infrastructure around the province to service it efficiently.
“The role of infrastructure development is critical for Transnet,” said Strydom. “We are in an era where the importance of rail is being realised and where it is coming into its own. It is not just about the maintenance of the rail network and rolling stock but also developing infrastructure to ensure the country remains globally competitive.”
She said with Gauteng at the centre of most regional and port connections in southern Africa it was imperative to address infrastructure in the province. “Millions of tons of freight move through the province and it becomes challenging when the freight trains are sharing infrastructure with passenger trains. It is therefore important to find viable and separate routes where possible.”
Strydom said areas for the ring had already been identified and the building of a dedicated freight network around Gauteng was part and parcel of future development and infrastructure plans.
“A freight ring can potentially facilitate the uninterrupted flow of freight, while providing a key link between hubs and terminals. It will also address the matter around removing freight from the already congested passenger routes.”
Already land has been identified in areas such as Vereeniging and Meyerdal for the first stage of development
in the ring. “The eventual freight ring will, however, not be closed on the western side because no feasible route
was found. Instead a bypass will be built in the west of the province connecting it to areas such as Rustenburg.”
Deidre Strydom and Pumi Motsoahae … ‘A freight ring can potentially facilitate the uninterrupted flow of freight.’
Border reform process ready to move forwardBy Alan Peat
After a six-month hesitation due to lack of funding, the plan for border post reform – originally conceived by the Federation of Southern African Road Transport Associations (Fesarta) – has got under way again, according to federation executive officer, Barney Curtis.
The first step in the Fesarta process to remedy the border post problem was extensive discussions about the problem issues
with regional players such as SADC, Comesa and the World Bank.
After a workshop funded by the British donor agency DFID via the Regional Trade Facilitation Programme (RTFP) the SADC decided to take the lead in implementing the proposed process.
The next step included the decision that a document needed to be drawn up, giving the terms of reference for a task team to follow, and an action plan formulated for going forward, Curtis told FTW.
“But funding then ceased as the RTFP completed its five year lifespan,” he said.
It was then decided that the DFID funding would be channelled through the newly formed body, The Trade Mark Southern Africa.
“However,” Curtis added, “this was slow getting off the ground, and it took six months to complete the changeover from RTFP to TMSA.
“It is only now that the next steps can be taken in implementing the reform process.”
Beginners’ shipping course attracts wide enrolmentEleven years since its launch, the Institute of Chartered Shipbrokers’ Understanding Shipping course has seen more than a thousand students qualifying for this beginner’s certificate.
The course – which covers chartering, maritime geography, the bill of lading, documentation and port agency – was updated at the end of 2009, with the chapter dealing with SA content extensively revised to cover the changes made
to local infrastructure and general port information.
Students are required to complete nine compulsory assignments followed by the final assessment, an oral exam, which determines the final pass or fail.
Many of the students, having completed this basic beginners’ course, continue with further studies through the Institute of Chartered Shipbrokers and ultimately become members of the Institute.
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Rates firming on SA routesLines differ on where they’re headedBy Alan Peat
The answers to questions about the supply/demand ratio and what’s happening with seafreight rates seem to depend on how optimistic or pessimistic the commentator tends to be.
What the capacity supply/demand is doing seems to get a conclusive response, but what it will mean remains an elusive answer.
Everyone is agreed that the demand is getting firmer, and – although they all agree that tonnage supply is also likely to jump up – there’s a varied response to where rates are headed.
A prominent ship’s agent is adamant that rates are firming, reaching historic highs on the westbound import trade from the Far East to SA, and the price war at the height of the global slump is definitely a thing of the past.
“But,” he said, “there is a whole load of new tonnage coming into the market.”
This, he added, like the two Far East lines, Cosco Container Lines and Evergreen Line, introducing a new “FAX” service on the SA-Far East-SA trade. This will operate with eight vessels of 2 700 to 3 400 TEU capacity.
But, the agent told FTW, increases in tonnage like this will put pressure on the rates.
“We’ll have to watch the market,” he said, “but I think the rates will soften a bit.”
Alex de Bruyn, Safmarine’s SA trade director, thinks the opposite.
“Currently flows remain strong,” he said. “The supply and demand equation will be tight. In this scenario, the rates will continue to firm and we foresee this pattern continuing the rest of the year.”
And De Bruyn is not singling out any specific trade to enact this scene.
“This scenario applies to the in and outbound Asia, West Central Asia, North American and Europe trades,” he
told FTW. “The Europe trades will be going through a strong citrus season. We also expect good growth of imports after the World Cup.”
Iain McIntosh, marketing manager of Mitsui OSK Line, is playing middle-of-the-road.
“Rates are not going down or up,” he said. “I’d describe them as being ‘stable’ – and we would like to get more if we could.”
McIntosh claimed to be “pretty certain” that – in the supply/demand equation – the increasing demand would effectively cover the extra tonnage expected.
He also suggested that much of the new tonnage being deployed was not bound for the Asia-SA run. “Most of the extra tonnage is being aimed at the Far East-South America trade,” he said, “rather than targeting southern Africa.”
FRIDAY May 21 2010 | 7
Rates firming on SA routes
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Rates likely to firm if supply and demand ratio remains tight.
LETTER
‘Driver training and national standardisation is crucial’I recently came across your magazine and found it extremely interesting and informative as I have been in the transport and driver industry for over 30 years.
I refer to the article “Checking driver credentials is crucial to avoid theft” (FTW April 2010).
It appears ludicrous that owners and managers of transport companies do not validate the driving and personal credentials of those entrusted with rigs worth perhaps millions of rands, never mind the loads they carry!
Either these owners are totally ignorant, insane or simply have no idea of how to run
a business.One does not need
to be a rocket scientist to evaluate whether a person applying for a position as important as taking charge of a vehicle plus load, perhaps worth millions of rands, is actually capable and qualified to handle that vehicle.
For a start, you need to check ID documents, place of residence, past employment, valid drivers’ licences and PrDp.
Plus employing the services of a qualified post-driver’s licence instructor to assess the prospective employee before allowing such a person to control such an asset.
Furthermore, lives
of innocent people are placed in imminent danger should the driver of such a rig be incompetent.
When is our South African transport industry going to take a stand and say enough is enough? We demand driver training and national standardisation.
We have professionals in this industry in SA – it just appears that corporates feel they need not spend valued profits in this direction but rather hope they do not have to pick up the pieces afterwards and recompense the dependants of the deceeased.
Vivienne.
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8 | FRIDAY May 21 2010
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South American charters offer cargo capacityLan Airlines books 15 flights during World Cup
By Alan Peat
A whole new airfreight network has just been opened up for cargo general sales agent GSAfrica, according to executive director Anne Sanders.
This, she told FTW, is a result of a contract being signed with the LAN Cargo section of Chilean flag carrier, LAN Airlines.
“We have been appointed as the cargo agent for Southern Africa and the Indian Ocean Islands (IOI),” she said.
In its first major connection with Africa, LAN has booked 15 charter flights into SA during the World Cup, carrying passenger loads
from Chile, Mexico, Ecuador, Bolivia, Paraguay, Uruguay, Brazil and Argentina.
“Each of these aircraft will also be offering cargo space,” Sanders added, “and we have been asked to fill it.”
Before and after the World Cup, GSAfrica has contracted to book cargo to and from Sao Paulo in Argentina and Buenos Aires in Brazil, in an interline agreement with SAA.
“Through these two hubs,” said Sanders, “we connect with LAN Cargo’s international network serving South and North America, Europe and Asia.”
Although this is LAN’s first venture into the African continent, “I’d say they are
here to stay”, Sanders added.“We already have a lot of
trade, especially in mining equipment, with Chile and the rest of South America, and with LAN Cargo, we will now also be able to offer an extensive network in the US.”
Anne Sanders ... ‘LAN’s first venture into the African continent.’
New freight management system launched‘Fully integrated suite for any size of agent’The next generation of freight management systems has just been launched by the software development house, CompuFreight.
This system comprehensively covers the clearing and forwarding, general warehousing, and perishables warehousing industries, according to company proprietors, Pedro da Costa and Chaim Meister.
“It provides a fully integrated suite built for any size of clearing agent
or warehouse to scale their operations, simplifying back-office activities and adding locality to bring about better control over logistics with minimal additional resources,” they told FTW.
With expertise in the customs broking and logistics industry spanning over two decades, they believe the company is well placed to deliver tailored supply chain logistics management solutions for every requirement.
Da Costa and Meister describe their vision for the freight and logistics industry as a seamless, open and integrated technology environment. “CompuFreight has implemented successful solutions for many leading companies in the industry,” they told FTW.
“We are not just another supply chain solutions software provider,” they added. “We offer a comprehensive package, from indent through to general ledger.”
“It is a modular system that has streamlined the operations, accounts, and management of freight forwarders, customs brokers, NVOCCs and warehouses companies.”
The ‘Business Intelligence Analytics’ is a new offering in system software.
This, according to the two executives, is a reporting tool enabling all data of captured files to be controllable by management – with reports available in column, line,
pie, bar, area and scatter chart formats.
The system also features a ‘Workflow Bulletin Board Display’ which monitors and controls the planning and execution of events that exist across the entire supply chain. It defines workflow and critical dates – with automatic scheduling of tasks, milestones, exception and event management across the indenting, forwarding, brokering, warehousing and accounting functions.
MACS kicks off 2010 with younger, faster fleetBy Alan Peat
After a cut in fleet size during last year’s global crisis, the capacity of Maritime Carrier Shipping (MACS) has now returned to pre-recession levels, according to MD Felix Scheder-Bieschin.
The cut included the redeployment of two vessels from its multi-purpose Europe-SA service to the Southern Africa-Mexico-USA Gulf Africa Line (GAL) service where they replaced three 38-year-old ships that had been sold.
This reduced the overall fleet by three vessels in 2009.
But a replacement programme started late last year and early this year, and according to Scheder-Bieschin, the combined fleets are now twelve permanently employed ships on the two services and two coasters working the East African trade.
“The capacity is now back to 2008 levels, and the fleet is younger, faster and has better equipment in terms of reefer plugs and heavy-lift gear,” he told FTW.
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By Liesl Venter
Botswana clearing and forwarding agent Joy Simakane beat tough international competition to take home third prize in the prestigious United Nations Conference on Trade and Development’s (Unctad) 2010 Empretec Women in Business Award.
“I am really overwhelmed but also very grateful for this award which goes a long way in proving that African women are coming into their
own and starting to make a mark in business,” Simekane told FTW.
Owner of Extramile Express, an international clearing and freight forwarding company based in Gaborone in Botswana, Simakane says the award also bodes well for women working in the male-dominated freight forwarding industry.
One of ten finalists for the awards, all graduates of an Unctad-supported Empretec programme which trains
entrepreneurs in developing countries, the winners were chosen by an independent panel of 20 judges.
“I started my business with nothing but a little bit of courage and a dream. This award proves that it can be done and that African women can be as successful at business as their male counterparts.”
Simakane wins consulting services to the value of US$1 500 from the Africa Technology Development Forum.
Joy Simakane, owner of Extramile Express, an international clearing and freight forwarding company in Botswana, who came third in the 2010 Empretec Women in Business Award, receives her award from Gerry Elsdon at a ceremony in Switzerland.
Courage and a dream pay off
Acsa ready for the worldBy Liesl Venter
Airports Company South Africa (Acsa) is more than ready for the world’s arrival on its doorstep in less than a month’s time.
Speaking at the monthly Transport Forum recently, Trevor Teegler, Acsa corporate specialist for special
events, said that airport operational plans were already 95% complete and were continuously being updated as more information became available ahead of the 2010 Fifa World Cup.
“As we find out more about team and spectator demand movements, we are updating the plans,” he
said. “All Acsa airports are meeting with stakeholders and role-players at airport level with regard to the operational plans of the respective airports on a continuous basis.”
He said planned dry runs were taking place with the vetting of all airport staff set to be completed by the end of May.
He said Acsa had put plans in place to run 24-hour operations during the World Cup with employees working three set shifts.
He said while many Acsa airports had already begun implementing the full operational plan for the World Cup they would be going “live” on June 1.
Trevor Teegler … plans in place to run 24-hour operation.
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Job market showing signs of revivalGrim start to the year – and retrenchments not over yetBy Alan Peat
The job market in the freight industry at the start of this year was “grim”, according to Lee Botti of Lee Botti and Associates – and two other major players in recruitment agreed with this finding.
“There have been a lot of retrenchments, companies closing branches, a lot of posts being offered on contract and not permanent, and the jobs section in newspaper classified ads getting very slim,” she told FTW.
“However, the good news is that it has been looking a
bit brighter in more recent times.”
Looking back at the first quarter of this year, it’s been “an unpredictable market”, according to Dr Lynn Ribton-Turner of Ribton-Turner Recruitment.
“The requests for staffing over the period have surged and then fallen off – so it has been a ‘stop-start’ period,” she added.
Her records show that clients are still searching for sound sales executives with a record of success – and there’s a definite requirement for skilled import candidates (both air and ocean).
“It appears that we are not yet out of the woods with regard to retrenchments, downsizing and ‘short’ working weeks,” Ribton-Turner said, “although, for a niche company, we are very busy with the job requests we have received.
“But, in talking to many forwarders we hear that revenues are still somewhat down. And, although volumes are slowly on the rise, the profitability of the file (due to the strong rand and smaller shipments) is not what it has been.”
Talking to Samantha Konkol, head of the freight
division of recruitment company PAG, her first thought was that the market had definitely turned.
She agreed that the kick-off to the year had been “a bit grim”.
“But,” she then added, “it has started picking up since April – although available posts have tended to be top level appointments.
“Placements have mostly been middle and senior management, and senior sales and business development staff.”
Another trend found specifically amongst freight clients has been that they’re
no longer just looking for someone to fill a post. “Rather,” she told FTW, “they are looking for people with proven, high skills levels.”
As part of its social responsibility portfolio, PAG has extended its employment familiarisation and training programme for potential freight staff with disabilities – which will now include youth-level candidates.
“We have compiled a full basic training guide,” Konkol said, “and are applying it to disabled candidates, now starting from school-leaving level and upwards.”
Saaff leads by example with learnership programmeBy Liesl Venter
The South African Association of Freight Forwarders (Saaff) will for the first time be offering a learnership in an effort to set an example to the industry.
According to Saaff board member Tony D’Almeida, the organisation is applying for a learnership that will involve facilitating the candidate’s theoretical and practical learning.
“From a theoretical point of view it will not be difficult, but obviously as an organisation Saaff cannot offer the practical side of the learnership. We will be calling on our members to help us in this regard and to facilitate the practical training.”
D’Almeida said the decision
to take on the learnership was in order to show members how the learnership system worked and also to set an example to the industry and encourage more learnerships.
He said learnerships were an important way for the industry to develop skills and to bring unemployed people into the system. “A company can through Teta offer a learnership without having to keep the person on after the completion of the year’s training. The learner will also be paid through the Teta should the company successfully get a grant.”
D’Almeida said it was important for the freight forwarding industry to embrace learning and training as it played an important role in the professionalisation of the industry as a whole.
“At the moment we have 108 people enrolled in the Customs Clearing and Forwarding certificate Level
3. Once they have completed that qualification they can do the Level 4 certificate, and with both certificates in
hand, can then through Saaff be issued the Fiata Diploma giving them an international qualification.”
Tony D’Almeida … ‘Industry must embrace learning and training.’
FRIDAY May 21 2010 | 11
OVERBORDER CONSOLIDATIONS▲ Roadfreight into Southern
and Central Africa▲ Full loads ▲ Hazardous cargo ▲ Confirmed daily tracking▲ Dedicated express loads
Exorbitant toll fees on the cardsExorbitant fees on some 40 new toll roads planned for Gauteng will have a dire impact on the economy of not just the province but the entire country, the road freight industry has warned. Initial reports have indicated that the new toll roads coming into effect on the Gauteng freeways in April 2011 will charge light motor vehicles some 50 cents a kilometre, while trucks and other heavy vehicles will have to fork out a whopping R3.50 per kilometre.
Fewer idle shipsThe month of May recorded the lowest totals for idle ships since January 2009,
according to the Paris-based shipping consultants AXS-Alphaliner. It reported that, on May 10, a total of 306 ships (5.3%) of the global cellular fleet were laid up – a total of 715 000-TEU capacity. This was compared to the 907 000-TEU capacity laid up two weeks before (on April 26).
Avo harvesting comes to a haltAvocado growers have stopped harvesting their trees at the peak of their season, waiting for the conclusion of the Transnet strike that will reopen ports. “They have stopped picking or they have greatly slowed down,” Derek Donkin, CEO of
the Avocado Growers’ Association told Cargo Info News. “Avocados will not fall off the trees; they’ll remain a week or so if the growers choose.” Growers had been expecting a good year, with exports projected between 10.5 and 11 million cartons (4 kg), or 42 000 to 44 000 tonnes; up from last year’s total of 9.7 million cartons.
Airbus offers assistance after Libya crashAirbus, in line with international regulations, is providing its full assistance to authorities following a plane crash in Tripoli in Libya on Tuesday involving one of its aircraft. The Airbus A330-200
operated by Afriqiyah Airways was arriving in Tripoli from Johannesburg when it crashed. “In line with ICAO Annex 13 international convention, Airbus will provide full technical assistance to the authorities responsible for the investigation into the accident through the Bureau d’Enquete et d’Analyse (BEA),” the aircraft manufacturer said in a statement. An investigation into the crash has been launched.
SARS arrests two in RandburgSouth African Revenue Service (Sars) enforcement officials along with the South African Police Service (SAPS) last week
arrested two individuals in Randburg for their involvement in VAT fraud amounting to R189m. The two individuals were arrested during a search and seizure operation that was carried out on two business premises in Randburg. False Sars stamps and documents were found on the premises. Further search and seizure activities were carried out on residential properties in Parktown North and Morningside linked to the operation. One of the suspects is a director of several companies which were used to defraud Sars, while the other is an accountant employed by the businesses.
LASt wEEk’S top StorieS on www.cargoinfo.co.za
FTW4707
ABI - Abidjan BAH - Bahrain BAN - Bandar Abbas, Iran CHA - Channai CHB - Chiba Xng-China DAK - Dakar, Senegal DAM - Dammam DBN - Durban DES - Dar es Salaam DOH - Doha,Qatar DOU - Douala, CamaroonFRE - Fremantle- Australia HUA - Huangpu, China JEB - Jebel Ali KOB - Kpbe, Japan
KWA - Kwanngyang, Korea LAG - Lagos LIB - Libreville LOB - Lobito, Angola LOM - Lome, Togo PYU- Pyaungtaek LUA - Luanda LYG - Lianyungang MAP - Maputo MAS - Masan MDV - Montevideo MOJ - Moji, Japan MOM - Mombasa MON - Monrovia, Liberia NAG - Nagoya NGY - Nagoya
OMN - Oman PDG - Reunion PKG - Port Kelang PKL - Port Kelang REU - Reuniun SAN - Santos SHA - Shanghai China SHJ - Sharjah SIN - Singapore TAM - Tamatave TEA - Tema TOY - Toyohashi ULS - Ulsan VTO - Vitoria YOK - Yokohama ZAR - Zarate ArgentinaXIN - Xingang, China
GENERAL AGENTS JOHANNESBURG DURBAN CAPE TOWN PORT ELIZABETH RICHARDS BAY SALDANHA BAY www.diamondship.co.za (011) 883-1561 (031) 570-7800 (021) 419-2734 (041) 373-1187/373-1399 (035) 789-0437 (022) 714-3449
EUKOR – FAR EAST / MIDDLE EAST / AFRICA
EUKOR – FAR EAST / WEST AFRICA
EUKOR - SOUTH AMERICA / AFRICA / FAR EAST
VESSEL VOY SHA HUA SIN DBN LUA LAG DOU TEA ABI SIN ULSGRAND HERO 003 SLD SLD 14/05 27/05 02/06 08/06 14/06 16/06 18/06 09/07 16/07
VESSEL VOY TOY SIN DBN VTO SAN MVD DBN SIN CHB PYU ULSGRAND SAPPHIRE 001 SLD SLD SLD SLD SLD SLD 24/05 06/06 13/06 17/06 -ASIA KING 089 - SLD - 05/06 08/06 12/06 23/06 07/07 15/07 18/07 20/07
EUKOR – FAR EAST / AFRICA / FAR EASTVESSEL VOY PYU ULS XIN SHA SIN DBN MOM DAR MAP SIN ULSCSS SHANGHAI 003 - 17/05 22/05 25/05 01/06 15/06 - - - 30/06 07/07
VESSEL VOY YOK JEB DOH DAM BAN SHJ OMN MOM DAR DBN SINTAI SHAN 062 SLD SLD SLD SLD SLD SLD SLD 15/05 17/05 23/05 06/06
Grim weather plagues Cape townBy Ray Smuts
Howling winds, angry seas and pelting rain turned a usually welcoming Cape Town the grimmest of the grim last week, as the weather hit shipping – those few ships that were moving, that is.
The first inkling of what was to come dawned on May 10 when a meteorologist warned of eight-metre ocean swells and more; a pattern that was to repeat itself for the entire week.
The ageing tanker, Hector, in ballast with sea water, experienced engine trouble in choppy seas ten nautical miles off Cape Point and when no suitable tug could be found for a tow, managed to make her own way to the relatively safe waters of False Bay to await spare parts from Durban.
Also seeking refuge in False Bay were the small reefer ship, Ice Fern, and the handysize bulker, Island Star.
A yacht, aptly named Cape Storm, was sailing from Mossel Bay to Cape Town when it was hit by the storm had to be towed to safety in Simon’s Town.
Heavy seas necessitated a helicopter airlift of Smit Amandla salvors from the grounded Turkish bulk carrier, Seli 1, where about 9 000 of the original 30 000 tonne cargo of coal still remains on board.
SA Maritime Safety Authority regional manager, Captain Dave Colly, says the bad weather substantially damaged equipment used to discharge the coal and that the operation will not be resumed as the cost of reinstating the
equipment will be far too expensive for the return on cost.
Colly says the team is intent on working toward the eventual removal of the wreck, aground off Blouberg beach since September. A decision is to be taken whether or not to suspend operations until summer.
There is no telling what sort of delays ships in the Mother City port are experiencing due to the Transnet strike, now in its second week, with usually up-to-date daily data not emanating.
To this correspondent’s surprise, a container ship was seen sailing from Cape Town on Sunday afternoon, whether it was from within the port itself or simply tired of waiting at anchor for a berth, an unknown factor.
Whether the timing of Transnet’s national worker strike is by design or otherwise, it has badly knocked the fruit export sector, with fears growing the R12 billion-a-year industry could be severely compromised without a speedy resolve.
Just how much the unrest is costing the economy, not to mention the impact on the looming FIFA Soccer World Cup, has yet to be determined but it’s safe to assume any ongoing deadlock will cost billions of rand in lost imports and exports, with fruit only one commodity to suffer.
Containerised shipping and all other elements in the supply chain are at a near standstill, port terminals remain closed, leaving hundreds of hauliers without work and many containers stranded on the quayside, so to speak.
The only terminals fully operational at major ports are those operated by Capespan subsidiary, FPT.
Safmarine, with a number of vessels waiting outside ports and unable to move any containers by rail since the strike took effect on May 10, has set up a special team to make alternative plans for short-shipping cargo as well as deciding which vessels will have to omit their port of call or continue to wait outside port for a berth.
“All stakeholders are aware of the strike’s impact on the economy and the cost of doing business in South Africa and while there is an element of urgency in resolving this
matter (the strike), it is not possible to say when it is likely to be called off and the wage dispute settled,” says Safmarine South African corporate affairs executive, Fred Jacobs.
Capespan, the country’s major fruit exporter with around 20% of market share, has resorted to opening contract stores earlier to absorb initial fruit volumes, mainly citrus, of which the export estimate is around 90 million cartons this season, and to a lesser extent, pome fruit.
It has also lined up at least three conventional ships to date to move fruit to Europe and the Middle East over the next two-odd weeks, due to the inability of container liner shipping to provide the service.
Deon Joubert, general manager operations, for Capespan Exports, estimates the impasse could cost the country’s growers some
R6 million a week in storage costs alone.
“For us, the strike could not have come at a worse time, other markets filling the gap which could make it very difficult for us to regain.”
Speaking in a personal capacity about the “horrific” current scenario, Joubert says it places huge financial pressure on all involved; furthermore he cannot foresee how Transnet can accommodate a 15% across the board union wage demand, given South Africa’s current economic climate.
Stuart Symington CEO of the Fresh Produce Exporters’ Forum (FPEF), says the country ships roughly 200 000 tonnes of fruit a month (peak seasons excluded), to overseas markets via Cape Town, Port Elizabeth, Durban and Maputo.
“The inability to move our fruit is not good for customer relations.”
Backlog looms
measured in volume or mass) of SA’s trade has ground to a halt.
Shipping lines are having to conduct an almost impossible sleight-of-hand with ship movements – and to make daily updates of scheduling of their fleets working the SA trades. Some ships are stuck in SA ports, some anchored outside, some still loading SA cargo overseas, and some missing out on SA calls and sailing on directly to the next in line in their port rotation. But there are no viable ports for them to divert to and offload SA-bound cargo, and being in its second week, the strike makes this ship and port juggling exercise even more difficult.
At the end of the first week, for example, the story at Durban was that six vessels were berthed alongside the container berths, 10 were waiting in the roads, and 25 were scheduled to arrive in the following eight days.
That could mean anything up to 50 ships stuck off or in Durban, returning to home
base or sailing on to the next port of call on their schedule. A typical statement was one issued by Safmarine. It said it cannot ship containers by rail to or from any SA port.
The statement added: “Our options are limited; there are no transhipment ports serving this region. Shipping services to SA are direct. The best contingency plan we could make was to adjust schedules so ships left ports earlier than scheduled.”
With the likes of Safmarine transporting high volumes of reefer cargo and time-sensitive auto parts, a long strike would be exceptionally damaging for the company and the SA economy, said London’s Containerisation International.
A large proportion of what is held up is destined for the World Cup (starting June 10), and retailers and wholesalers waiting for it look as though they’ll have bare shelves.
Rail freight is obviously a no-no with the strike in place, while forwarders, road transporters and allied industries are also facing a drastic cut-back.
From page 1
COMPILED AND PRINTED IN ONE DAYOutbound
Updated until 11am Updated daily on Cargo Info Africa – www.cargoinfo.co.za
Name of Ship/Voy/Line WBAY CT PE EL DBN RBAY Loading for
To: The Far East and South East Asia Updated daily on http://www.cargoinfo.co.za
OUTBOUND BY DATE - Dates for sailing: 24/05/2010 - 07/06/2010