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FREIGHT & TRADING WEEKLY
For import / export decision-makers FRIDAY 2 August 2019 NO. 2355
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Call for cool heads ahead of a ‘BoJo Brexit’
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Eugene Goddard
A picture of border bureaucracy, technical inefficiencies and resulting backlogs of trucks queueing for days to pass through key SADC transit points has once more emerged, with the regular congested crossing of Kasumbalesa yet again at the centre of road haulage holdups.
In a message sent to FTW over the weekend, Mike Fitzmaurice of the Federation of East and Southern African Road Transport Associations
(Fesarta), sketched a scene of logistical snags right across the region, stressing that the worst problems were being experienced in Zimbabwe and the Democratic Republic of the Congo (DRC).
Referring to the crossing between Zambia and the DRC – which has regularly made headlines for all the wrong reasons – the Fesarta CEO said at Kasumbalesa hundreds of tankers, including acid and fuel, were parked due to the DRC authorities starting to introduce seals – the
electronic tracking-and-locking devices attached to trucks and containers once they have been customs cleared.
He added though that the more critical reason for the backlog of trucks going north into the DRC was delays in the issuing of the necessary passes, known as Feri Certifiicates, to get into the DRC.
“Most trucks have been parked now for more than a week,” he said.
But another source, who preferred to remain anonymous, said the
certification issue could not be blamed on the DRC as it had been found at a meeting involving transporters and clearers last week that freight forwarders were not submitting the Feri applications on time.
“The DRC authorities have been very lenient to the benefit of hauliers and importers to allow for time to get their systems up and running and comply with Feri Certification.
“But a while ago the DRC decided that no trucks would be allowed in any more unless they had completed the necessary
certificates of destination.”The source said if it weren’t
for the lethargic attitude of those applying for certificates, and transporters thinking they could get through without the certificates, “we probably wouldn’t have had this situation”.
In apparent confirmation of the source’s views, Stefan Viljoen of Seguro Clearing said they didn’t have issues at the moment because they made sure that all necessary paperwork was in place by the
Fesarta flags capacity as congestion flares up at SADC transits
The Transported Asset Protection Association (Tapa) presented a compelling case for road hauliers to fight cargo crime through incident reporting and the intelligent advantages of big data accumulation during a well-attended conference at Emperors Palace last Friday.
The CEO and president
of Tapa’s Middle East and Africa region, Thorsten Neumann, said despite having the “biggest database of cargo crime” in the world, the organisation remained underrepresented in terms of local membership.
“South Africa is one of the hot spots of cargo crime in the world at the moment yet we only have eight members.”
Backed by a strong presentation and solid stats from Tapa’s Information Incident System (ISS), Neumann explained how in one region between Poland and Germany road freight pilferage had been brought down 80% thanks to collaborative work between law enforcement agencies
To page 8
Compelling case for harnessing big data to fight cargo crime
To page 8Tapa Middle East and Africa CEO, Thorsten Neumann.
2 | FRIDAY August 2 2019
DUTY CALLS Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY
These statements have been edited because of space constraints. For the full versions go to ftwonline.co.za. Note: This is a non-comprehensive statement of the law. No liability can be accepted for errors and omissions.
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Wire ropes and cables dumping - Comment dueOn 26 July the International Trade Administration Commission of South Africa (Itac) initiated a sunset review of the anti-dumping duties on wire ropes and cables of a diameter exceeding 32mm, originating in or imported from the United Kingdom and Germany, and on stranded wire of a diameter exceeding or equal to 12.7mm, originating in or imported from China, on which comment is due by 26 August.
Gypsum plasterboards dumping – Comment dueItac on 26 July initiated a sunset review of the anti-dumping duties on boards, sheets, panels, tiles and similar articles of plaster or of compositions based on plaster, not ornamented, faced or reinforced with paper or paperboard only,
not ornamented (commonly known as gypsum plasterboards) originating in or imported from Thailand and Indonesia, on which comment is due by 26 August.
Cooker hoods tariff – Comment dueOn 26 July Itac announced a reduction in the ‘general’ rate of customs duty on cooker hoods having a maximum horizontal side not exceeding 120 cm, domestic type from 15% ad valorem to free. Comment is due by 23 August.
Optic fibre cables tariff – Comment dueItac on 26 July announced the creation of a rebate item on “Optic fibre cables, classifiable in tariff subheading 8544.70, for use in international submarine optic fibre cable infrastructure, at such times and in such quantities and subject to such conditions as Itac may allow by specific permit, provided that
optic fibre cables are not available in the Sacu market; and electrical apparatus for making connections to or in electrical circuits, for a voltage not exceeding 1000 volts, other, classifiable in tariff subheading 8536.90.90, for use in international submarine optic fibre cable infrastructure, at such times and in such quantities and subject to such conditions as Itac may allow by specific permit, provided that optic fibre cables are not available in the Sacu market”.
Bolt ends and screw studs safeguard – Comment dueOn 26 July Itac initiated a call for public interest submissions on safeguards on threaded fasteners of iron or steel: bolt ends and screw studs, screw studding and other hexagon nuts (excluding those of stainless steel and those identifiable for aircraft).
Application for attendance at the public hearing of 28 August is due by 12 August.
Frozen potato chips dumping – Comment dueItac on 26 July announced the initiation of a sunset review of the anti-dumping duties on frozen potato chips originating in or imported from Belgium and the Netherlands, on which comment is due by 26 August.
Threaded fasteners safeguardOn 26 July the South African Revenue Service (Sars) imposed a 102.10% provisional safeguard on fasteners of iron or steel (excluding those of stainless steel and those identifiable for aircraft) from 26 July up to and including 10 February 2020..
FRIDAY August 2 2019 | 3
Eugene Goddard
South African exporters have been advised not to jump to alarmist conclusions now that principal Brexit proponent Boris Johnson has replaced Theresa May as prime minister of the UK.
Trade analyst Catherine Grant Makokera told FTW she was not 100% convinced that there would be a Brexit come October 31.
Moreover, she said for the time being only a handful of exports would be impacted by a hard Brexit. “The ideal of course is that we have a roll-over of the economic partnership agreement and trade goes on as normal. We’re pretty close to that.”
The type of exports that would definitely be affected,
were mainly from the agricultural and automotive sectors. She advised exporters to familiarise themselves with a list of 124 product types that the UK had released and that was available through the Department of Trade, Industry and Competition (dtic).
Makokera added that there were a number of chemical-related products that were also on the list for potential tariff-related increases.
In the longer term the list of possible tariff-subjected products could go up to as
many as 500 products, but that would mainly be niche exports like fertiliser.
She also mentioned that of the anticipated products that could finally be exposed to British tariffs,
only about 100 were exported from South Africa.
For now, though, and of immediate importance, is that exporters focus on the list of 124 definite product types
that will be affected by Brexit.
Makokera also advised exporters to consider “non-tariff-related issues like
standards and customs requirements. Exporters need to figure out whether they will still be able to use the same customs documentation system or whether there will be a whole new system.”
For the most part, she feels South African exporters shouldn’t be too worried.
“If you’re exporting a fairly straightforward product where you are not part of a complex supply chain that has technical rules of origin and requirements, then you can probably get good advice from the dtic.
“They have been engaging a lot with the UK and they have a lot of information to hand out about how the UK is intending to deal with Brexit.”
She also said that
provincial advisory bodies like Wesgro, in respect of the Western Cape, were a good call for proactive preparation ahead of Britain’s long-awaited separation from the EU.
And while Johnson has made it very clear that when Britain wakes up on November 1 it will no longer be part of the common market – deal or no deal – Makokera believes it’s easier said than done.
“I think once Boris Johnson realises how hard it is he’s going to back off.
“Unfortunately, for South Africa it also means more of the same – uncertainty! We don’t know where this is going right now.”
On the surer side, she added that there “isn’t too much of a prospect of too much shift”.
Consultant calls for cool heads ahead of a ‘BoJo Brexit’
For the time being only a handful of exports will be impacted by a hard Brexit.– Catherine Grant Makokera
“The Port of Cape Town will replace two of its tugs by 2022 as part of an ongoing strategy to upgrade its equipment.
According to Qamisa Tukani, Transnet National Ports Authority senior operations manager, procurement processes have already started for the two vessels that will replace the two oldest tugs in the port’s fleet.
“We are vey challenged with launches as two of our tugs have been operational for 39 years already, making their replacement a necessity,” she said.
The port has one new tug, the Usiba, which has been operational for only two years, while the Palmiet and
Enseleni tugs still have some years of work in them after 19 years of service.
“The Chardonnay and Merlot, however, need to be replaced. The plan is that both these tugs will be decommissioned as soon as the new tugs arrive in 2020.”
According to Tukani this is part of the port’s five-year fleet replacement strategy.
“We will also replace both our workboats by 2021. The current workboats, the Kestrel and Blue Jay, have both done 36 years of service. We should be replacing all floating craft after 35 years,” she said, indicating that TNPA was overdue with several vessels.
The port would also introduce a helicopter service in 2021, she said. One
helicopter would be purchased and would be used to service all the ports in the Western Cape, moving pilots to vessels particularly in rough sea conditions when it is difficult to operate the pilot boats.
“We have two pilot boats in Cape Town and both are fairly new at only five years old. We are very comfortable with these, but we struggle to berth vessels as we cannot get pilots onto the boats when there are heavy swells.”
She said the pilot boats simply could not withstand the swells being experienced in Cape Town – hence the helicopter initiative.
“We have run a helicopter trial and the results were very good,” said Tukani.– Liesl Venter
CT port spells out five-year fleet replacement strategy
Western Cape premier Alan Winde has prioritised the raising of the Brandvlei Dam wall as water security continues to top the province’s agenda.
He identified it as a key project to make the Winelands and Langeberg regions more water secure and provide much-needed irrigation for the agricultural sector.
Speaking in the provincial parliament recently, Winde said it could also unlock thousands of hectares of land for emerging black farmers.
“Raising the wall of the Brandvlei Dam feeder canal by only 30cm will increase the dam’s storage capacity and open up water rights for farming. At a cost of
R20 million, this project makes sound economic and ecological sense,” said Winde. “And yet it has travelled through 17 departments or entities – each with varying degrees of interest and enthusiasm – for the last five years. Quite simply, it is stuck in the mud of bureaucracy.”
He said while the dam fell squarely under the remit of the national government, the province was tired of the stalling.
“I have told President Ramaphosa this, and I am saying it here today: if this project does not break free from its muddy hold and get approval soon, we will go ahead and we will do it ourselves.” – Liesl Venter
Western Cape gets serious about water security
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4 | FRIDAY August 2 2019
In a move that will expand
warehouse capacity for CFR Freight’s
ZacPak division, the company is
set to move its Cape Town
warehousing premises from Epping to Montague Gardens.
The move to a vastly larger yard had been necessitated by a push for expanded capacity, CEO Martin Keck told FTW.
“The new premises are over 6000 sqm bigger than what we had in Epping – and safety, security, better road infrastructure and freer flow of traffic made the move a no-brainer,” he said.
“Although the warehouse at the new yard is similar in size to the one in Epping, it’s much higher, giving us racking capacity opportunities that equate to almost 3000 to 4000 sqm in extra space. Of our bigger clients who do their own groupage and consolidations
we handle about 85% of the unpacking on their behalf.”
The company is also expanding its route network with the imminent launch of a service from Hai Phong, Vietnam’s northern most port and one of that country’s biggest industrial metropoles.
CFR already handles consol cargo from Ho Chi Minh City, a service they launched about six months ago, and given the success of that route they now
also have Hai Phong in their sights.
“It’s what we have to do to remain dynamic in
times such as these,” Keck said.
“Business is slow and growth is minimal but we don’t sit and wait for better days. We have the will and the vision to grow and
we remain focused on always delivering a better service, knowing it drives sales.”– Eugene Goddard
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South African sugar producer associations are seeking government intervention as part of a larger strategy to develop a sustainable rescue plan for an industry in crisis.
“We dare not fail,” said Rex Talmage, South African Cane Growers’ Association chairman, pointing out that the interventions and government promises made last year had simply not been enough to stem the “crisis”.
This crisis had been further compounded by the introduction of the sugar tax (or Health Promotion Levy) and an inf lux of duty-free imports from Swaziland, he added.
“Industry experts
estimate that over 400 000 tons were displaced as a direct result of the Health Promotion Levy (HPL) over the 2018/19 season resulting in at least 600 000 tons being exported at record low prices to an over-supplied world market,” said Talmage.
The 600 000 tons had been exported at a R5 000 a ton loss, added managing director of Illovo Sugar, Mamongae Mahlare. She said that the real impact of the HPL on sugary drinks
was only just becoming evident.
“It has now become clear that the HPL is no small thing,” she said, and further pressure has come
from South Africa’s landlocked neighbour, Eswatini (formerly Swaziland), which is expected to produce about 743 000 tons of sugar this season.
“When Eswatini
lost its preferential access to the European Union, as any business would, it started looking around for profitable markets
– and South Africa was the natural target” said Mahlare.
Eswatini does not impose an HPL on soft drinks as is the case in South Africa, nor does it have an import tariff – and according to Mahlare, the price per ton it receives in SA is the highest compared with surplus export market prices.
Agreements reached at the National Economic Development and Labour Council (Nedlac) last year to mitigate the impact of the levy have also never materialised.
Despite “staggering under this tsunami” Mahlare is confident that “there are glimmers of hope, which could see the start of a turnaround within 18 months”.
Following discussions
with the new ministers and other key government stakeholders – including Minister of Trade and Industry, Ebrahim Patel –both Mahlare and Talmage are hopeful the sector will start seeing faster-paced policy development and support from the government.
“I am really comfortable that we have been engaging with the right people who can help us to precipitate even higher levels of engagement with senior leaders within the next 18 months,” Mahlare said.
According to the South African Sugar Association (SASA), the R14-billion South African sugar industry ranks in the top 15 out of approximately 120 sugar-producing countries worldwide.
Sugar industry battles for survival as sugar tax bites
Groupage operator expands Vietnam coverage
There are glimmers of hope, which could see the start of a turnaround within 18 months.– Jacques Viljoen
“
Business is slow and growth is minimal but we don’t sit and wait for better days.– Martin Keck“
FRIDAY August 2 2019 | 5
The latest revision of International Commercial Terms (Incoterms), due for launch within weeks, has attracted strong criticism over their relevance in South Africa and the sub-Saharan region’s trade landscape.
Pat Corbin, SA director of the International Chamber of Commerce (ICC), the world body responsible for updating Incoterms every 10 years, believes they are out of sync with local conditions.
“The cost implications of Incoterms are putting additional financial strain on South African importers,” he said.
At the heart of the problem is the fact that the ICC’s Commercial Law and Practice Commission, the drafting group responsible for devising the Incoterms, “is not familiar with our trading landscape”, in Corbin’s view.
“They don’t contend with the fact that sub-Saharan African has the most landlocked countries in the world.”
With the exception of Mali,
Niger, Chad and Burkina Faso, all of the remaining officially port-less countries in Africa, numbering 12 in total, are south of the Sahara.
Add the Democratic Republic of the Congo into the equation, because its Atlantic sea port of Matadi is mainly a low-volume transhipment
harbour, and technically speaking sub-Saharan intra-trade has 13 countries that are landlocked.
“It means the application of Incoterms in our region and import trade through our region is
at a significant disadvantage because of the prescriptive nature of the terms.”
Adding a finer point to the picture, he said on top of the insurance and incremental cost implications of the terms for traders in the region, sub-Saharan freight was already subjected to a variety of challenges, many being violently disruptive.
“You know what it already costs to transport goods in South Africa and further afield, not to even mention
all the other factors we have to contend with. It’s because logistics movement is so vital that we have to constantly consider trade costs and external factors that add to the expense of operating as a trader in this region.”
Corbin said he had been talking to the ICC about the matter for years, that technical issues around cargo ownership between exporters and importers and how this affected southern African freight should have been addressed long ago.
In a document he shared with FTW, Corbin showed that as far as the ICC was concerned, inbound cargo was the responsibility of an importer once goods had been delivered to a landside depot or terminal.
“It is especially in this respect, and the additional costs it saddles importers with, that sub-Saharan Africa should be given due consideration,” he said.
“But Incoterms are driven for the sake of exporters and when the ICC looks at the market they use Europe, which is a trade bloc without the issues we have, and they expect us to work according to terms that essentially suit their ports.”
Corbin said it was high time that the ICC’s Incoterms
drafting committee appointed more freight experts and fewer attorneys, particularly people familiar with southern Africa’s trade landscape, to accommodate sub-Saharan freight and the cost of trade in this part of the continent.
As an example of how out of touch the ICC is with the situation here, Corbin said they wanted to send a trainer from Singapore to South Africa “to come and tell us about Incoterms”.
“We don’t need someone from Singapore to come and tell
us what the books say. I don’t agree with what Incoterms is saying, it’s irrelevant for us.”• Last Tuesday Paris advised
that now ICCSA will be the only party authorised to accredit trainers on Incoterms in the name of the ICC. The process to qualify will involve satisfying ICCSA that the
applicants will be competent to combine South Africa’s present trade practices and legal requirements with the relevant Incoterms.
– Eugene Goddard
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Questions raised about revised Incoterms in African landscape
I don’t agree with what the book is saying, it’s irrelevant for us.– Patrick Corbin“
Customs agents have given the South African Revenue Service (Sars) the thumbs up for addressing concerns around tariff determinations (TDN) which were taking an extraordinarily long time to process.
FTW last year reported that TDNs were taking
anything from six months to a year due to a massive backlog at Sars.
“The general industry impression is that the situation has improved a lot,” an industry source told FTW. “We have no TDNs outstanding at our company any more.”
According to the customs and excise act, TDNs must be considered within 90 working days.
Another agent said complaints were down to a minimum after last year’s frustration.
Industry has also welcomed a decision by Sars
that tariff determinations will be published in the future. While it will take some time before this is implemented, most customs experts say it is a move in the right direction.
“The challenge facing Sars and industry lies in the inconsistent application
of tariff classification policy, with some traders enjoying unfair advantages due to Sars hiding behind “confidentiality”,” said a source. “This problem, however, should improve with the transparent publication of the tariff determinations.”– Liesl Venter
Significant progress in Sars tariff issue
12The number of
landlocked countries in sub-Saharan Africa.
Phot
o: E
ugen
e G
odda
rd
6 | FRIDAY August 2 2019
As shipping lines and shippers count the cost of current port congestion, a detailed dollar
breakdown brings into sharp relief the enormity of the impact on an already stressed industry.
“As an example,” says national commercial director of MSC, Glenn Delve, “the shipping line recompenses the owner a charter hire ranging between US$ 25000
to US$ 40000 per day, regardless of whether the
vessel has been engaged in cargo operations or is
awaiting a berth at anchorage.
“This delay in berthing
or sailing implies that the berthing windows in
the subsequent ports are jeopardised, which induces further delays in berthing, which will be afforded, subject to availability.”
As a result the vessel will have to steam at full speed, burning additional fuel bunkers, he explains.
Over a distance of 5000nm (10 days at full speed @ 21 knots), he estimates that the additional fuel expended is approximately 300 MT, costing
approximately US$ 130 000. And if lines are unable
to meet their schedule commitments, they have no option but to skip ports. “This means that cargo
destined for a particular port has to be discharged elsewhere and transhipped back to the original port of destination.
“Likewise, the containers intended for export out of the port
that is omitted must be shipped from another port. Considering an additional
exchange of 1000 units to be transhipped (both imports and exports) at an average cost of US$ 150 per unit, an additional spend of US$ 150 000 is necessitated for transhipment alone. This excludes the sea freight.”
And if schedule recovery is not possible, in order to maintain a weekly service an additional vessel must be injected into the fleet at huge cost.
The bottom line, says Delve, is that a small delay in one port has a multiplier effect, having huge cost implications. “There seems to be a disconnect in understanding the price a shipping line may have to pay as a consequence.”
Ed Richardson
There are some interesting anomalies in the share of container traffic of the major shipping lines at South African ports compared to their global market penetration.
Calculations by Linernet show that, while MSC vessels accounted for 33% of South African port calls in 2018, the line has a 15% share of the international container market, according to Alphaliner calculations.
APM-Maersk, which is
ranked as the world’s biggest shipping line, has a 26% share of berth calls and 18% global market penetration.
Closest to parity with its international footprint is CMA CGM, with around 13% of local port calls and a 12% global market share.
The Cosco Group which, according to Alphaliner had 12.5% share of global container traffic in July 2019, accounts for just 3.6% of South African calls.
“We calculated this based on publicly available berthing information,” says Lance
Pullan of Linernet.“One thing to bear in
mind is that the shipping line market shares we have calculated only factor in vessel sharing agreements (VSAs) and not slot chartering agreements (SCAs),” he says.
Statistical analysis reveals market share anomalies
A small delay in one port has a multiplier effect, having huge cost implications.– Glenn Delve
“Line spells out multiplier effect of port congestion
Prepared by: Lance Pullan Date: 09 Jul 2019
All data provided is the sole property of Linernet and onward use or distribution is not permitted.
Visit: linernet.net
Line 2017 2018 Change 2017 2018 Change Global RemarkMSC 33.6% 32.9% -0.7% 42.5% 40.5% -2.0% 14.9%MSK 25.5% 26.0% 0.5% 26.9% 27.6% 0.6% 18.0% Acquired HSD in 2018CMA 13.7% 12.8% -0.9% 11.1% 10.1% -1.1% 11.6%ONE 0.0% 5.2% 5.2% 0.0% 5.1% 5.1% 6.8% Formed by the merger of KLI, MOL & NYKCOS 1.4% 3.6% 2.2% 1.3% 3.0% 1.8% 12.6%PIL 4.6% 3.6% -1.1% 3.2% 2.9% -0.3% 1.7%DAL 1.6% 1.9% 0.2% 2.0% 2.6% 0.6% 0.1%MOL 5.4% 1.8% -3.6% 6.0% 2.1% -3.9% 0.0% Merged with KLI in 2018 to form ONEEMC 2.3% 2.6% 0.3% 1.7% 1.9% 0.3% 5.6%NDS 1.4% 2.6% 1.2% 0.9% 1.9% 1.0% 0.2%OAC 5.3% 4.7% -0.6% 1.1% 0.9% -0.2% 0.1% Regional feederKLI 1.9% 0.7% -1.2% 1.5% 0.5% -0.9% 0.0% Merged with MOL in 2018 to form ONEHSD 3.1% 0.7% -2.4% 1.9% 0.4% -1.5% 0.0% Acquired by MSK in 2018ZIM 0.0% 0.6% 0.6% 0.0% 0.4% 0.4% 1.3%HLC 0.0% 0.1% 0.1% 0.0% 0.1% 0.1% 7.4%
Port Calls Capacity
LINE 2017 2018 CHANGE 2017 2018 CHANGE GLOBAL REMARK
MSC 33.6% 32.9% -0.7% 42.5% 40.5% -2.0% 14.9%
Maersk 25.5% 26.0% 0.5% 26.9% 27.6% 0.6% 18.0% Acquired HSD IN 2018
CMA 13.7% 12.8% -0.9% 11.1% 10.1% -1.1% 11.6%
ONE 0.0% 5.2% 5.2% 0.0% 5.1% 5.1% 6.8% Formed by the merger of KLI, MOL & NYK
Cosco 1.4% 3.6% 2.2% 1.3% 3.0% 1.8% 12.6%
PIL 4.6% 3.6% -1.1% 3.2% 2.9% -0.3% 1.7%
DAL 1.6% 1.9% 0.2% 2.0% 2.6% 0.6% 0.1%
MOL 5.4% 1.8% -3.6% 6.0% 2.1% -3.9% 0.0% Merged with KLI in 2018 to form ONE
Evergreen 2.3% 2.6% 0.3% 1.7% 1.9% 0.3% 5.6%
NileDutch 1.4% 2.6% 1.2% 0.9% 1.9% 1.0% 0.2%
OAC 5.3% 4.7% -0.6% 1.1% 0.9% -0.2% 0.1% Regional feeder
K Line 1.9% 0.7% -1.2% 1.5% 0.5% -0.9% 0.0% Merged with MOL in 2018 to form ONE
Hamburg Süd 3.1% 0.7% -2.4% 1.9% 0.4% -1.5% 0.0% Acquired MSK IN 2018
ZIM 0.0% 0.6% 0.6% 0.0% 0.4% 0.4% 1.3%
Hapag-Lloyd 0.0% 0.1% 0.1% 0.0% 0.1% 0.1% 7.4%
PORT CALLS CAPACITY
FRIDAY August 2 2019 | 7
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The go-slow at South Africa’s ports has dealt the citrus export industry its biggest blow in 25 years, according to Hannes de Waal, CEO of the Sundays River Citrus Company.
Speaking to FTW after capacity issues, backlogs and throughput had been addressed to some extent, he said in their area alone, up to Patensie south-west of Nelson Mandela Bay, “there are roughly 2000-3000 boxes of fruit that should have been shipped by now.
“When they finally arrive in the markets they are destined for it’s going to be two to three weeks late and it will result in claims.
“In the 25-odd years that I have been in this industry the quantum of the impact of what is happening at the moment is unlike anything I have ever seen. We have to consider though that it’s going to take two to three months for this to play out.
“Fruit first has to arrive at markets and delayed delivery costs must be factored into shelf prices before we will know exactly what this strike is costing us.”
Admittedly, volumes processed through ports like Ngqura had substantially improved, De Waal said.
“But we are sitting with the extra logistical expense of having to ship crates to Cape Town and Durban.”
The bigger issue, he explained, was twofold.
“First of all, it’s playing havoc with our schedules. On a weekly basis our organisation has to report to leading retailers across the world what the delivery schedules are but the strike and the subsequent backlog of delayed shipments has completely ruined the schedules.”
Second of all, De Waal stressed, it had a massive ripple effect on the supply chain.
He said once freight flows were restored you suddenly found that fruit was over-supplied in an attempt to make up for time lost, leading to a separate set of issues.
“Let’s just say that it’s an absolute nightmare!”
And as for being fair to the relevant authorities for the inroads that have been made to resolve the strike, which is ongoing but diminished and that has resulted in 13 suspensions of crucial operational employees, De Waal was forthright in his condemnation of Transnet Port Terminals (TPT).
“You can’t just turn around and blame it on trouble-makers within your organisation. I used to work at the container terminals in Durban and noticed with alarm the changes that were made to the incentive bonus system.
“You simply can’t treat people like that. If our management treated its employees similarly they would most likely also go on strike.”
He also hit out at the lacklustre approach to asset maintenance and upkeep and the foot-dragging from on high when it came to waking up to the gravity of the situation.
De Waal said on a recent visit to the container piers in Durban he had seen for himself how poorly maintained the assets seemed and how dirty it was.
De Waal said it was only once they got Agbiz involved and started ventilating their frustration in the right circles of power that throughput issues at the ports of Ngqura, Durban and Cape Town seemed to improve.
“The fact of the matter is we have issues year on year. Last year it was a union that came into our area and intimidated our labourers into going on strike. Also, we are far from European markets, have to contend with closer exporting countries like Egypt and Spain, and are responsible for maintaining standards to secure the high-quality organic and chemical-free fruit we export.
“But unless the government does
something about TPT, which in my view is simply not doing its job, South Africa’s citrus industry could become unfeasible.”– Eugene Goddard
Unless the government does something about TPT, the citrus industry could become unfeasible.
“
Citrus executive lays into Transnet over ports go-slow
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Fesarta flags capacity
time trucks reached the border.“A lot of the backlog issues
are caused by transporters arriving at the border thinking they can sort out their paperwork there. It means that truckers carrying approved papers often have to wait in line as they are held up by others who didn’t get their affairs in order before leaving for the DRC.”
Not necessarily, said Fitzmaurice.
Responding to accusations that a lot of forwarders are guilty of dereliction in following due process, he said there were serious capacity issues in getting the certificates approved in time.
“It takes too long, sometimes up to a week.”
The company responsible for issuing the certificates, he said, “simply doesn’t have the capacity to deal with the volume of applications”.
Fitzmaurice added that major problems were also experienced in getting through Zimbabwe.
He said they simply did not
have enough electronic seals for the amount of road freight passing through the country’s borders like Beitbridge, Chirundu further to the north, and Forbes on the way to Mozambique’s Port of Beira.
He said around 900 trucks passed through these borders on a daily basis and, apart from the shortage of seals, sometimes
their on-board batteries ran out – and with Zimbabwe’s electricity issues at the moment, down to less than eight hours of power on a good day, it can take up to 12 hours to recharge the
seals before the necessary cargo clearing can be done.
Apparently calls have been made to dispense with seals in Zimbabwe due to the shortage issue but then trucks will have to be escorted, “and that will take even longer”, Fitzmaurice said.
He added that a significant part of the problem was the fact that SADC countries used different systems, with the exception of East African countries “being a little more farsighted”.
What we have at the moment is absolute chaos.– Mike Fitzmaurice“
From page 1
of both countries using insights gleaned from ISS.
Such has been Tapa’s success in providing a solid information service on cargo crime, its membership in Europe over the last 13 years has mushroomed to more than 410 companies, with its country tally going from 14 to 28.
Of the 24 big pharmaceutical companies of which Neumann is aware, 18 have joined Tapa, and that’s just one sector of high-value cargo.
Yet South African road hauliers, despite the violent environment in which they operate, appear to be dithering when it comes to joining an organisation that
has become a world leader in providing its members with useful information.
“On average R30 million is lost through cargo crime in South Africa annually. This year alone 3000 incidents were reported in the first quarter alone. Currently we’re standing on around 3900 incidents in total.”
And that picture, Neumann emphasised,
was not a true ref lection of what was really happening because a lot of local
cargo crime was under-reported.
“I’m in South Africa,” he said, “to convince local law enforcement authorities to work with us in gathering information – to form a data
front to road freight theft that’s already used in the Netherlands, with countries like Denmark and Sweden also cottoning on.”
Compelling case for harnessing big data From page 1
I’m in South Africa to convince local law enforcement authorities to work with us.– Thorsten Neumann
“
Liesl Venter
Truck operators and port authorities are at loggerheads over turnaround times at the Port of Cape Town’s truck staging area.
Whilst truckers complain about the congestion, the long queues and slow turnaround times to get in and out of the port, port authorities have raised concern about the illegal parking of trucks.
According to Qamisa Tukani, Transnet National Ports Authority senior operations manager, the truck staging area is a major pain point for both port
users and port authorities.“The illegal parking
of trucks is a problem and a challenge to the port, especially when the container terminal is wind bound,” she said.
Port users, in return, told Tukani the congestion being experienced at present was just as challenging. “It can take up to 13 hours to process a single truck at the port,” said one transporter.
Tukani acknowledged that work needed to be done by both sides. Calling on industry to enter into dialogue with the port authority, she said as part of a medium-term solution a task team had been
formed – comprising the port authority, Transnet Port Terminals (TPT) and the City of Cape Town – to identify land to develop a staging facility. “We have a meeting scheduled for August 5,” she said.
This staging area would, however, be outside the port. “All of the pockets of land inside the port are not available because of the high voltage power lines under the ground,” said Tukani. “As part of our long-term plan we will develop a truck staging facility that will be able to accommodate 1.4m TEUs per annum. This project will be realised in the next five years.”
Task team to address CT truck staging area
