The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription FRIDAY 3 April 2009 NO. 1856 FREIGHT & TRADING WEEKLY Truckers set strike date Jobs market implodes BY Alan Peat The truckers’ strike is set for April 7. A notice dated March 27, and sent to the Road Freight Association (RFA) by Tabudi Ramakgolo, sector co-ordinator of the SA Transport & Allied Workers Union (Satawu), reads: “Satawu and its members hereby give notice of their intention to embark on an industry-wide strike in pursuit of their demands. “The strike will commence on April 7 at 01:00-hours.” According to information released to FTW by Magretia Brown, labour relations manager of the RFA, the only possible saving grace could be a meeting planned for March 30 (after FTW’s printing deadline) – when further negotiations between the Road Freight Employers’ Association (RFEA) and the four unions involved will take place. Both employers and unions have expressed their commitment to negotiations. “The RFEA negotiations team has been, and still is, committed to the negotiation process,” said Brown. “But, while we will always try to avoid a strike, we will be prepared for one – and we will stand our ground.” Said Ramakgolo: “We remain committed to resolving the dispute, and ask that you (the RFEA) make every effort during the next 10 days to meet our demands.” The negotiation option is also being encouraged by the Commission for Conciliation, Mediation, and Arbitration (CCMA). But settlement of the dispute depends on both employers’ and workers’ bodies bringing their offers and demands closer together – with a yawning gap currently between the two figures. Said Brown: “The RFEA has offered 11%, which we believe is more than reasonable under the current economic conditions. In the event of a strike this will revert to the original 10.5%.” The four unions – led by Satawu – are still insisting on a massive 37% hike on the minimum wages and a 15% increase across-the-board. “In addition they want four-months’ fully paid maternity leave and a number of allowances that will also result in a huge on-cost for employers,” Brown added. “That is all economically unrealistic.” And, although employers intended that the new increases be implemented from March 1, this has now been delayed – and workers likely won’t see more pay (whatever is finally decided) until after mid-year. “And it will even be more delayed in view of the upcoming elections,” said Brown. “The department of labour has indicated that they will be under pressure to promulgate the agreement if it is submitted to them beyond the first week of April since they will no doubt be affected by the dissolution of parliament in early April. “They have advised the National Bargaining Council of the Road Freight Industry (NBCRFI) that any further delay in securing an agreement may very well result in promulgation being delayed until as late as July.” FTW1058SD FTW1613SD Kim Botti ... Some companies are cutting salaries by as much as 20% in order to avoid retrenching staff. (See story on page 12.) Photo: Tijana Huysamen.
Transcript
The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscriptionFRIDAY 3 April 2009 NO. 1856
FREIGHT & TRADING WEEKLY
Truckers set strike date
Jobs market implodes
BY Alan Peat
The truckers’ strike is set for April 7.
A notice dated March 27, and sent to the Road Freight Association (RFA) by Tabudi Ramakgolo, sector co-ordinator of the SA Transport & Allied Workers Union (Satawu), reads: “Satawu and its members hereby give notice of their intention to embark on an industry-wide strike in pursuit of their demands.
“The strike will commence on April 7 at 01:00-hours.”
According to information released to FTW by Magretia Brown, labour relations manager of the RFA, the only possible saving grace could be a meeting planned for March 30 (after FTW’s printing deadline) – when further negotiations between the Road Freight Employers’ Association (RFEA) and the four unions involved will take place.
Both employers and unions have expressed their commitment to negotiations.
“The RFEA negotiations team has been, and still is, committed to the negotiation
process,” said Brown. “But, while we will always try to avoid a strike, we will be prepared for one – and we will stand our ground.”
Said Ramakgolo: “We remain committed to resolving the dispute, and ask that you (the RFEA) make every effort during the next 10 days to meet our demands.”
The negotiation option is also being encouraged by the Commission for Conciliation, Mediation, and Arbitration (CCMA).
But settlement of the dispute depends on both employers’ and workers’ bodies bringing their offers and demands closer together – with a yawning gap currently between the two figures.
Said Brown: “The RFEA has offered 11%, which we believe is more than reasonable under the current economic conditions. In the event of a strike this will revert to the original 10.5%.”
The four unions – led by Satawu – are still insisting on a massive 37% hike on the minimum wages and a 15% increase across-the-board.
“In addition they want
four-months’ fully paid maternity leave and a number of allowances that will also result in a huge on-cost for employers,” Brown added.
“That is all economically unrealistic.”
And, although employers intended that the new increases be implemented from March 1, this has now been delayed – and workers likely won’t see more pay (whatever is finally decided) until after mid-year.
“And it will even be more delayed in view of the upcoming elections,” said Brown.
“The department of labour has indicated that they will be under pressure to promulgate the agreement if it is submitted to them beyond the first week of April since they will no doubt be affected by the dissolution of parliament in early April.
“They have advised the National Bargaining Council of the Road Freight Industry (NBCRFI) that any further delay in securing an agreement may very well result in promulgation being delayed until as late as July.”
FTW
1058
SD
FTW1613SD
Kim Botti ... Some companies are cutting salaries by as much as 20% in order to avoid retrenching staff. (See story on page 12.)Photo: Tijana Huysamen.
2 | FRIDAY April 3 2009
FREIGHT & TRADING WEEKLY DUTY CALLS
Editor Joy OrlekConsulting Editor Alan PeatContributors Liesl VenterAdvertising Carmel Levinrad (Manager)
Now Media Centre 32 Fricker Road, Illovo Boulevard,
Illovo, Johannesburg. PO Box 55251, Northlands,
2116, South Africa.
Trade Remedy Duty CorrectedSars has announced the correction of the anti-dumping duty on ropes and cables of iron or steel, not electrically insulate, of a diameter exceeding 8 mm (excluding that of wire of stainless steel, wire plated, coated or clad with copper and identifiable as conveyor belt cord) excluding that imported from Bridon International Gmbh and Pfeifer Drako).
Withdrawal of Anti-Dumping Notice – Tall Oil Fatty AcidIn a Government Gazette notice dated 25 March 2009, the International Trade Administration of South Africa (Itac) announced the withdrawal of its notice dated 20 March 2009.The notice of 20 March 2009 relates to Itac’s finalisation of its investigation into the alleged dumping of tall oil fatty acid, which originated in or was imported from Sweden. This is the first instance of which I am aware where Itac has withdrawn a notice at this stage
of an investigation. The reason for its decision is unknown. Once we have more information, we will let you know.
Also of interest is the fact that the South African Revenue Service (Sars) published no notice in the Government Gazette of 20 March 2009 announcing the imposition of final anti-dumping duties on tall oil fatty acid, originating in or imported from Sweden.
Safeguard Duties on Lysine SubstitutedSars has announced the substitution of safeguard duties on feed supplements containing by mass 40% or more lysine, whether or not containing added antibiotics or added melengestrol acetate.
Security Policy – Reduction in SecuritySars issued a letter dated 02 March 2009: Securities – Review of Risk Associated with Reduction in Security.
According to Sars, its Security Policy makes provision for customs to reduce security from
the standard amount. Sars noted that companies were finding it more and more difficult to fulfil their financial obligations and hence there appeared to be a greater frequency of Customs clients going into liquidation as well as defaulting on their deferment schemes.
Sars offices have therefore been advised to re-evaluate the security amounts where deemed necessary. Sars reiterates in its letter that security amounts on bonds lodged will not be summarily increased and that Sars offices will apply their minds on the levels of reduction previously afforded and establish if such levels are relevant to the compliance levels of the client.
Correction Notice of Check DigitsSars has announced the correction of a number of check digits relating to feed supplements.
Competition Commission – SAA ExemptionThe Competition Commission has announced the receipt of an Application for Exemption from
South African Airways. SAA’s application is in respect
of a new joint Star Alliance product called the Meeting Plus Programme. The product is similar to two other Star Alliance products called the Convention Plus and the Corporate Plus Programmes.
All interested parties are invited to submit their written comments to the Commission by 28 April 2009.
National Agricultural Marketing CouncilThe term of office of the five members of the National Agricultural Marketing Council (NAMC) is set to expire on 30 June 2009.
Nominations for members to serve for a period not exceeding four years are invited by no later than 03 April 2009.
A WEEkLY summary of the main changes to the South African tariff dispensation and amendments to customs and
excise legislation. Compiled by Riaan de Lange of Tariff & Trade Intelligence. E-mail: [email protected]
Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.
FTW0016SP
FRIDAY April 3 2009 | 3
By James Hall
Gaborone – It will be Valhalla at border crossings if there is implementation of some novel recommendations arising from a stakeholders’ meeting for the Southern African Customs Union (Sacu) last week.
Sponsored by the Botswana Ministry of Trade, the talks involved public and private sector players from Sacu member states Botswana, Lesotho, Namibia, Swaziland and SA, although government representatives from SA did not attend. The agenda was non-tariff barriers to trade.
One innovation to emerge from lively internal discussions held by road transport firms was separate lanes at border posts for different cargoes.
“You can’t get behind a truck with a large load at a border post. You’ll be there
all day. There should be a lane for courier service trucks, a lane for perishables, and other specialised lanes. The customs staff would be trained to specialise in one type of cargo. This would speed things along and save money,” one of the participants Jabu Vilakati, co-director of Sharp Freight which plies the Botswana/Lesotho/Swaziland routes through SA, told FTW.
Documents and the bonding of goods were key issues raised, and other practices that contradict Sacu’s role as a means to unify and simplify regional shipping.
“Companies have to post bonds in each country. There should be one bond posted, a Sacu bond,” said Muzi Dube of the Swaziland Federation of Employers.
Recommendations, which delegates will take to their
respective trade ministries in preparation of the next Sacu ministerial meeting, include the need for a single customs document for use in all countries, instead of forms that differ from place to place.
“Sacu countries cannot impose tariffs on member states’ goods, but this goes on. There are also the electronic data filing system
incompatibility issues. The systems need to talk to each other,” said Dube.
The ultimate transport grail – Sacu-wide 24/7 border post operations – was also promoted.
“Trucks want to drive at night when there is less traffic and less heat for better tyre wear. The stakeholders are pushing for this,” said Dube.
FTW1639SD
F&C subject experts wantedThe Forwarding & Clearing Chamber of TETA (Transport Education & Training Authority) in association with the SA Association of Freight Forwarders will be developing curricula for the Freight Forwarding & Customs Compliance Qualifications from Level 2 through to Level 4.
“In order for this project to be successful, we urgently require the assistance of subject matter experts in the field of freight forwarding and customs compliance,” says Teta’s Ingrid Du Buisson.
In a major deal, Transnet and the Japan Bank for International Co-operation (JBIC) have signed an untied loan agreement for about R4-billion – as part of funding Transnet’s R80-bn capital investment programme.
One immediate target for part of the loan monies is to reimburse the amount already spent on the widening and deepening of the entrance to the Durban harbour, with the
rest destined for the remaining cost of completing the project.
It’s a vital project in Transnet’s development programme – primarily intended to accommodate larger vessels in Africa’s busiest and largest port.
It includes dredging to deepen the new, wider entrance channel, which will improve navigation for vessels using the port and accommodate larger vessels of the post-Panamax and super post-Panamax categories.
The project is to be completed by March next year.
Transnet spokesman, John Dludlu, listed the benefits of the exercise.
It will include significant improvement in safety standards, he told FTW. “The increased availability of the channel will reduce waiting times for vessels – enabling shipping lines to reduce their tariffs for cargo to and from Durban. This will lower the cost of doing business.”
He also stressed that the
deployment of larger vessels would allow operators to achieve economies of scale, and that the big ships would enable the Port of Durban to accommodate the projected growth in container volumes.
“It will help Durban to develop as a hub port for the southern Africa region,” Dludlu said.
The R80-bn five-year capex programme is aimed at revamping and extending Transnet’s rail, pipeline and port infrastructure network,
according to Chris Wells, acting group CE.
This, he told FTW, included buying a significant number of new and “like-new” locomotives for the rail freight division; building and expanding ports infrastructure; and building the new multi-product pipeline between Durban and Gauteng. This is to replace the existing pipeline – which is now more than 40-years old – and significantly increase pipeline capacity.
Emirates Airline plans to grow the number of flights across its network by 14% in 2009, increasing cargo capacity by 17%.
That’s the word from Ram Menen, divisional senior vice president cargo, who hopes to see some stability returning to the industry in the coming months after a difficult two years.
“ For Emirates SkyCargo, 2009 will be a year of consolidation.
“In the next 12 months we will take delivery of two new, state-of-the-art Boeing 777 freighters, the largest twin-engine aircraft in the world. They will have a maximum payload of 103 tonnes. In addition, 18 new wide-bodied passenger aircraft will be added to the Emirates fleet, enabling Emirates SkyCargo to increase frequencies and capacity on many existing routes.”
Emirates currently has a fleet of 129 wide-bodied aircraft, including eight freighters. By the end of the 2008-09 financial
year that figure will stand at 132, including one Boeing 777 freighter. The carrier will take delivery of another Boeing 777 freighter in the 2009-10 fiscal year.
“We will bolster our presence in markets where we have a greater demand from our
customers, such as China and Africa,” he said.
Emirates SkyCargo recently launched a weekly Boeing 747-400 freighter flight to Lagos. A second daily passenger service to the Nigerian capital, with 18 tonnes of bellyhold cargo capacity, was started on February 1.
FTW1635SD
Japanese loan funds Transnet’s port and rail developments
Airfreight customers get access to additional capacity … In the next 12 months Emirates will take delivery of two new state-of-the-art Boeing 777 freighters, the largest twin-engine aircraft in the world.
Marine insurance offers no cost-cutting optionsIf you’re looking for belt-tightening measures, cutting your marine insurance premiums is not an option.
The reason, said Susan Bester, marine marketing manager of Prestmarine, is that you only have two choices. Either insure at the quoted premium for your goods, or don’t insure – the latter being an ill-advised move with the risks attached to the international movement of cargo.
Any attempt to save on quoted premiums by lessening the sum insured is not feasible the way the marine
insurance industry works, said Dave Keeling, joint MD of UMS and committee member of the Association of Marine Underwriters of SA.
“Unlike with car insurance, where you can insure the vehicle for whatever amount you want – and pay for that – marine insurance quotes are worked out to a very strict formula,” he told FTW.
“In very basic terms, we will write an annual, open policy which would include a basis of valuation – effectively a formula for calculating the sum insured."
FRIDAY April 3 2009 | 5
Transnet Port Terminals has hinted at a rethink of investment decisions in light of the economic downturn.
While the transport utility has set itself bold productivity targets for the financial year ahead – beginning April 1 – chief operating officer Solly Letsoalo says it may have to relook at its cost base. “We need to align it with demand without sacrificing the ability to grow when the volume comes back.”
Letsoalo wants to see all the terminals averaging 28 container moves per crane hour. “On the bulk side our target is 6000 tonnes loaded per hour.”
The challenge, says Letsoalo, is keeping costs down when volumes and activity are low and the number of employees exceeds the requirements.
“We have very high expenditure that was put in place whereas very little revenue is coming from the
additional expenditure, so there is a need to relook at the whole investment plan.
“We must ensure that we prioritise the investments that will deliver growth in the short term as well as those that we need to have in place when the economy turns – and making that choice is a major challenge.”
Managing cash flows, managing costs and then keeping employees motivated are the priorities, he said.
FTW1637SDFTW1643SD
TPT hints at investments ‘rethink’
Dealing with staff expectations in a downturn
NYK suspends Durban calls on FE-S America serviceNYK Line will suspend Durban calls on its New Horizon Express Service between the Far East and South America from April 24, according to information released last week.
The service will continue to operate on the Far East-South America route, bypassing Durban.
The line’s planned
Far East-SA-West Africa service has in the meantime been delayed due to heavy congestion in West African ports.
The schedule will cover the Far East-SA-West Africa, returning to South Africa and then back to the Far East.
Proposed launch date is mid-May.
Meeting the salary expectations of staff in tight economic circumstances will be a major challenge for Transnet Port Terminals in coming months, says chief operating officer Solly Letsoalo.
In the good times, overtime pay was the norm – and it’s something on which some employees have come to
rely. He acknowledges that meeting the expectations of staff in a downturn will be a fine balancing act.
“When overtime pay falls away and they’re affected personally, it creates a lot of conflict between the employees and management.
“These issues need a lot of thought and we are not as experienced as we need to
be in handling these kind of situations – but we have to learn very quickly.”
And transparency will be key.
“We need the cooperation of every single employee in dealing with the downturn.
“The bottom line is that we need to be prepared to put together a very clear communiqué that will make
people understand what’s happening around the world and how it impacts on us and what we need to do together to deal with it – that will be the cornerstone of our success in dealing with this economic downturn.”
Solly Letsoalo ... ‘We need the cooperation of every single employee in dealing with the downturn’
6 | FRIDAY April 3 2009
By Joy Orlek
Transnet Port Terminals used the TOC Asia 2009 Conference and Exhibition in Shenzhen, China earlier this month to punt its hub strategy to the global maritime industry.
“Shipping lines and cargo owners can gain a cost advantage by consolidating traffic in South Africa for distribution to East and West Africa,” general manager of strategy, safety, health, environment and quality, Mervin Chetty, told delegates. “Already container lines are beginning to rationalise port calls globally due to the financial crisis.”
Chetty argued that a container hub or relay strategy in sub-Saharan Africa could lower the cost of trade for shipping lines and cargo owners.
“This would entail the move of sub-Saharan Africa away from its current multiple gateway system of medium sized ports, towards the model
of a transhipment hub with large gateway feeder ports. A hub in South Africa should offer large transhipment volumes as well as gateway volume to feed cargo to other destinations in Africa,” he said.
He believes the Port of Ngqura (Coega), fits the bill. The terminal will have an initial capacity of 800 000 TEUs when it starts commercial operations in early 2010 and will ramp up to two million TEUs eventually.
“This is expected to decrease pressure on other busy South African container terminals in Durban, Pier 1 and Cape Town where Transnet has already seen a large increase in transhipment traffic as a result of vessels diverting from the Suez Canal,” he said.
Elsewhere in Africa, the Port of Djibouti is creating an additional three million TEUs to achieve a total capacity of 3.4 million TEUs, while in Dakar, Senegal an additional 1.5 million TEUs would bring total capacity to 1.75 million
TEUs. Similar investments are being made throughout Sub-Saharan Africa in ports like Port Louis in Mauritius, Mombasa in Kenya, Lagos in Nigeria, Walvis Bay in Namibia and Maputo in Mozambique.
Chetty markets SA’s hub benefits at China expo
FTW3837b
Mervin Chetty ... Lines need to ditch ‘milk run’ model.
New arrangement on FE-South America tradeFour major shipping lines have formed an operational alliance on the Far East-East Coast of South America (Ecsa) trade, which includes a call at Cape Town on the eastbound leg, according to Ivan Naik, Durban-based MD of PIL South Africa.
The joint container service is to be operated by NYK, K-Line, PIL (Pacific International Lines) and HMM (Hyundai Merchant Marine) as from mid-June, he told FTW.
“Ten ships – each of around 4 250-TEU capacity – are being deployed on a 70-day rotation,” he added. “This will enable a weekly service to be maintained on the port rotation: Shanghai, Ningbo, Hong Kong, Shekou, Singapore, Santos, Buenos Aires, Montevideo, Navegantes, Paranagua, Santos, Rio de Janeiro, Cape Town, Singapore, Hong Kong and Shanghai.”
Only PIL and K-Line ships – each have three vessels in the fleet – will call at Cape Town.
NYK is also a three vessel contributor to the overall service, while HMM provides one ship.
This four-line alliance, said Naik, replaces the original plan made at the end of last year.
This was the end of the joint service between PIL and Mitsui OSK Line at the end of December, with both lines having separate plans for their new services on the trade.
What PIL originally intended, according to Naik, was to run independently until June, then to enter a joint service with K-Line on the route – operated by 10 vessels of 2 800-to-3500 TEU capacity, five from each line.
But this has now been substituted by the four-line ship-sharing agreement, which, Naik stressed, will provide excellent economies of scale – with the fleet being serviced with cargoes from four separate line streams.
The increased capacity is clearly a sign that growth on the route is expected, he added.
FRIDAY April 3 2009 | 7
AIRFREIGHT EXPRESS
By Liesl Venter
Global coverage and reach to almost any destination you can think of is now a reality for South Africa’s small and medium-sized freight forwarders with the move by CFR Freight to join a neutral network of international airfreight wholesalers.
One of South Africa’s leading neutral sea freight non-vessel operating common carriers (NVOCCs), the company has in the past four years steadily increased its air freight services since adding it to its portfolio. By joining the AirCargoGroup (ACG) they have upped their game once again.
“We have been very export orientated until now, but by joining ACG we can offer a comprehensive import service
to our clients,” says newly appointed director Peter Schmidt-Löffler.
Taking a leaf from the sea freight portfolio, which saw the company become a member of the WorldWideAlliance – allowing it to offer global coverage to its customers – the move to join ACG has been well received, says Schmidt-Löffler.
“This is essentially a gateway for the smaller company into the world. Not every clearing and forwarding company has a network of agents available at their fingertips and they can now use our network and literally deliver or collect to and from any place in the world, even the remotest parts of Africa.”
ACG is an organisation of airfreight wholesalers offering a global platform and service
tools for freight forwarders and giving them access to special airfreight consolidation rates, air cargo charters and specialised
air transport handling. It offers its services exclusively to freight forwarders and logistics operators acting as a completely
neutral intermediary worldwide.“Neutrality is very important
to us,” says CFR Freight managing director Martin Keck. “We pride ourselves on our clients being able to trust us 100%. Neutrality is something we look for in the organisations we become members of. Looking at ACG all the members are reputable and established, and our clients can only gain from this move.”
With offices in Johannesburg, Port Elizabeth, Durban and Cape Town not only does CFR have national reach, but by joining ACG it has an international arm of note, says Keck “It has definitely been the right time for us to grow this portfolio. With the global coverage and reach we now have, our clients can export or import to and from anywhere in the world,” he said.
Airfreight network adds muscle to CFR Freight portfolioProviding a gateway to the world
Martin Keck (left) and Peter Schmidt-Löffler … ‘Using our network agents can literally deliver or collect to and from any place in the world, even the remotest parts of Africa.’
FRIDAY February 6 2009 | 88 | FRIDAY April 3 2009
AIRFREIGHT EXPRESS
Although air cargo rates on the SA air routes are definitely dropping, there has been no significant switch from sea to air transport because of this, according to FTW commentators.
This followed an FTW investigation of the local airfreight market following a report in UK trade journal reported that air freight rates in Europe were “plummeting” – and smaller orders and the need to speed cash-flow were prompting some manufacturers of high-value finished products to switch from sea to air, especially on Asia-Europe routes.
Was that the case here? That was obviously the question to ask. But in this case the answers were of the yes-and-no variety.
Yes, said Tommy Reddy, an airfreight specialist at Röhlig Grindrod, rates were dropping. “But there has been no noticeable switch to airfreight from sea because of this – yet.”
An airline, which is a major cargo carrier in and out of SA, said that rates were down. But not “plummeting”. And, although
generally worldwide volumes were also dropping, this was not the case ex Johannesburg, where “we’re still flying fairly full”.
Anthony Dawe, CEO of Bidfreight, was brief and to the point when quizzed about any sea-to-air switch. “Nothing I’ve noticed,” he told FTW.
At Safcor Panalpina, another brief answer was forthcoming.
Safcor executive, Charles Speed-Andrews, disagreed with that earlier airline feeling. “The volumes of air cargo in SA have dropped dramatically,” he said, while also noting that there were a number of companies that were not in too much of a hurry for cargo, and seafreight was their favoured option.
Speed-Andrews is currently getting his team to work out some figures on rates and volumes, hoping to feed FTW with some sort of numerically-backed information on the situation.
Airfreight rates down – but no switch from sea
FTW1583SD
Clearing and Forwarding SoftwareTaking your business to a new level
When software specialist Parcel Perfect opened its doors in Cape Town 11 years ago, its objective was to provide a technology platform for small to medium-sized courier companies that would enable them to compete on an equal footing with bigger operators.
And it’s an objective that has been achieved, says director Rod Bracher.
The system is designed to cover the full spectrum – from upstream CRM right through to the operational process, including collections, tracking, delivery management, document imaging, debtor accounts and analysis of margins.
It also offers features like an online booking system and a range of mobile solutions. “For guys on the road it starts with simple features like receiving collection or sending POD data via SMS through to mobile scanning devices which achieve complete end to end tracking.
“Immediate tracking and POD feedback can be critical
in the high-end courier express market where an hour can make a big difference.”
Customers are traditionally courier-type operations, says Bracher, “but we’ve moved a lot into fulfilment and logistics and are seeing more and more requirements in warehousing and distribution.”
The system is however completely modular and customers can tailor-make based on their needs.
So sure is the company of the effectiveness of the system that installation comes with no contractual obligation – and so far it’s never failed to meet expectation.
One of the system originators, John Henderson, was involved in the courier industry and knew the shortfalls of available solutions.
“Most systems available today have spun out of a custom-developed solution for a particular company. We designed our system as a generic option without a specific customer in mind – to be as configurable as possible. We wanted to ensure that there was an operability between
related companies in different parts of the world, making it totally seamless.”
Henderson believes that Parcel Perfect solves the real problems – with a consultancy element providing the edge.
And when it comes to costs,
he believes the value of the software becomes apparent down the line.
“It’s not a purchased option so it’s very low risk for the customer who doesn’t have to commit funds upfront. It’s a transactional-based system
with the company charging a percentage of what they process.”
Providing a mix of computer and courier industry expertise, Parcel Perfect is constantly refining the product which was first launched in 1998.
Software solution adds competitive edge for courier companies
FTW
4329
To promote your services contact CARMEL LEVINRAD on Tel:+27 11 214 7303
Upcoming FeaturesFREIGHT & TRADING WEEKLY
Zambia24 July 2009
Booking deadline: 12 June 2009
Project Cargo29 May 2009
Booking deadline: 17 April 2009
Durban/Richards Bay26 June 2009
Booking deadline: 15 May 2009
Logistics10 July 2009
Booking deadline: 29 May 2009
Cargo General Sales and Service AgentsContact details: Tel: (011) 390 3132/3/8 Fax: (011) 390 3139e-mail: [email protected]
FTW
4125
Moving into fulfilment and logistics
The ‘Perfect’ team … Simon Welsh, John Henderson, David Hollings and Rod Bracher.
10 | FRIDAY April 3 2009
E-commerce platform for the ocean freight industry, INTTRA, has signed long-term agreements with Maersk Line, MSC, CMA CGM, Hapag-Lloyd and Hamburg Sud for e-commerce and professional services worth more than $100 million (R942m) over the next three years.
The new contracts are part of a longer term strategy to expand INTTRA’s e-commerce services and products for carriers and their shipping partners, says chief executive officer Ken
Bloom.“Since INTTRA
launched eight years ago, it has lowered the average cost of key business processes for carriers by 60%. Today more than 260 000 container orders are initiated on the INTTRA platform each week, representing more than 10% of global ocean container trade.
“INTTRA has logged increased year-on-year volumes and has grown in the last quarter by 12% as carriers seek to gain more cost savings from their business processes.”
Major new carriers sign up with INTTRA
WE make the complex simple
Your supply chain solution partnerSpecialising in China
The Internal Administrative Appeal ("IAA") procedure came into effect some time ago, but is still giving rise to a few unexpected anomalies.
You may recall that the settlement and appeal procedure was first published under section 93A of the Customs & Excise Act (the Act) in 2001, but was repealed a short while later. It then reappeared in Chapter XA, which is divided into Part A, B and C. This now provides for IAA, Alternate Dispute Resolution (ADR) and settlements.
The IAA process allows a right of appeal against any decision, including: ● Anydeterminationorotheract of an administrative nature for the purposes of the Act; ● Anyamendmentorwithdrawal or making of a decision; and● Anyrefusaltotakeadecision.
Section 91 is an entirely separate section that provides for administrative penalties. In short, it allows someone who has failed to comply with the Act to be dealt with administratively if they agree to abide by the Commissioner's decision and deposit whatever sum may be required by Customs. The idea is that the Commissioner will deal with the matter summarily and then order forfeiture in full or in part of the sum that was deposited by way of a penalty.
Section 93(2) of the Act goes on to provide that the Commissioner may on good cause shown mitigate or remit any penalty.
Logically, section 91 read with section 93 provides for a procedure in respect of penalties that is entirely separate to the IAA procedure provided for in section 77A to 77HA. This notion is supported by the fact
that neither section 91 nor section 93 make any reference to the IAA sections and vice versa.
That said, Customs has interpreted the sections in such a way that any application for mitigation of section 91 must be done by following the IAA process. In other words, you will have to lodge a DA51 and grounds of appeal against any decision taken in terms of section 91.
It is very important to remember that the procedure is formalistic and that an appellant must comply with the specified time periods. Should you require any further information in this regard, do not hesitate to contact us.
We are also pleased to advise that in the event that your appeal in terms of the IAA procedure is unsuccessful, you will have further recourse under the ADR process. We will, however, discuss ADR in our next article.
Custom MadeYour regular specialist column on
customs-related issues by Taryn Hunkin
Does IAA render section 91 meaningless?
April 22 terminal closureTransnet Port Terminals will close all 15 of its terminals in six commercial ports along South Africa’s coastline
on voting day, April 22.Operations will cease
at 06:00 on April 22 and reopen at 06h00 on April 23.
FRIDAY April 3 2009 | 11
13 transport sector companies go bust in first two monthsIn a special release to Cargo Info News, Luke Doig, senior manager of investments and economic services at Credit Guarantee Insurance Corporation (CGIC), revealed that 13 business enterprises in the transport, storage and communication sector had closed their doors in the first two months of 2009, only marginally above commensurate 2008 levels of 12.
“This pales in comparison with the near 70% uptick in overall recorded liquidations in the first two months of 2009,” he added. “However, there is broad acceptance that the economy may well enter a recession in Q1of ‘09 and that gross domestic product (GDP) growth will be barely positive in 2009.
Gloomier and gloomier …The International Air Transport Association’s revised 2009 performance forecast for the global airline industry paints an even gloomier picture than
initially expected. Africa’s airlines are expected to lose US$600m in 2009 – six times more than they did in 2008 Global losses are now estimated at US$4.7billion for 2009, much worse than the previous (December 2008) prediction of US$2.5bn. Industry revenues are set to fall by 12%, which is worse than post 9/11, while cargo demand is expected to drop by 13%. The only good news is lower fuel prices.
All you need to know about F178The Durban branch of the Exporters' Club is to follow its Johannesburg counterparts with an official presentation by Queen Mogane, senior manager of the SA Reserve Bank (SARB) foreign exchange department, of the concept and application of the customs F178 document. This will be held at a function at the Point Yacht Club on April 23.
War of words erupts over appointment of Transnet CEOA war of words has erupted
between the ANC and DA over the appointment of a new Transnet CEO. This follows comments by the opposition earlier this week that the delay favoured the ANC’s wishes at the expense of public interest proving they could not distinguish between their role as political party and that of government.
"Despite the board of Transnet recommending Pravin Gordhan as the CEO-designate to the minister of public enterprises, Luthuli House has overruled this decision as the ANC leadership is reported to favour an alternative candidate, Siyabonga Gama," said DA spokesman for transport Manie van Dyk.
Durban-bound truckers take noteThe N3 Toll Concession (N3TC) has advised users of the N3 that as of today (26 March) vehicles travelling in a southerly direction from Johannesburg towards Durban will not be able to turn right into the Truck Stop or the Shell Ultra City at Balmoral.
A problem expressed to FTW last year about the SA broad-based black economic empowerment (BBBEE) scheme has now gone a long way to being solved, according to Murray Chabang, of BEE consultants, Besa.
The question asked at that
time by a ship’s agent, who didn’t want to do in-house self-rating, was: “How do you get a rating if no accredited verification agencies are appointed yet?”
But the SA National Accreditation System (Sanas) is the body recognised by
the government to officially give formal recognition that laboratories, certification bodies, inspection bodies, proficiency testing scheme providers and good laboratory practice (GLP) test facilities are competent to carry out specific tasks for BEE.
And, Chabang told FTW, February marked the start of the listing of accredited agencies on its website – with BEE Matrix; BEE Empowered and Labour Consultancy; BEE Verification Agency; Empowerdex; EmpowerLogic; Honeycomb BEE Ratings; National
Empowerment Rating Agency (NERA) – Gauteng; NERA KwaZulu Natal; NERA Western Cape the first to appear.
“But more are being added each month,” said Chabang, “with more than 11 agencies now waiting for Sanas to update their web page.”
12 | FRIDAY April 3 2009
By Alan Peat
The bottom has fallen out of the freight industry job market.
According to two of the country’s leading freight recruitment specialists, the market has done a complete reversal on last year – when a skills shortage was providing the tears – to an oversupply of candidates looking for too-few available jobs.
In a snap survey of her national records, Kim Botti, director of Lee Botti & Associates, noted that there had been an increase in redundancies within the industry in just the past couple of weeks.
“Initially,” she told FTW, “companies spent the first two months of the year waiting to see what would happen. But they have now taken action with retrenchments. Some companies are cutting salaries by as much as 20%
in order to avoid retrenching staff while others are working “short-time” or a four-day week.”
Dr Lynn Ribton-Turner, head of Ribton-Turner Recruitment, noted the same turnaround timing.
“Go back to last September,” she said, “when the turbulence in world markets eventually filtered down to the freight industry, and shipping lines watched volumes dropping dramatically – particularly the SA exports.
“Freight forwarders were still buoyed by orders being processed in their systems, and this ran through into the New Year. So January was a wait-and-see month.”
But in the meantime, global freight forwarding organisations placed an embargo on recruitment worldwide – except, for critical positions.
This has been met in SA
with a massive drop in job vacancies, she added, in what is normally the peak season for employment. “But few positions are available this year,” she said.
Botti’s figure check agreed.“Nationally,” she said,
“we have had a number of unemployed candidates register with us – and there certainly is an abundance of candidates in relation to the number of positions available. This is the complete opposite of last year and the massive skills shortage experienced.”
It has also seen some hesitancy amongst freight industry staff to think of a move in this lean period.
Said Botti: “Employed candidates are hesitant to move. Should they join a company that may later retrench, they could be hit with the Lifo principle (last-in, first-out).
“We have also learned that some companies have advised
their staff no increases or bonuses will be considered this year due to the economic downturn.”
But there’s possible light on the horizon, according to Ribton-Turner.
“A brighter note,” she told FTW, “is that shipping has reported that they are picking up cargoes again, and forwarders that they have
indents flowing through their systems – an indicator of increasing volumes to come.”
As yet unclear, she added, is whether this is a bubble, or not.
Both recruitment specialists noted that sales staff were still in demand – which, Botti said, “reflects companies’ needs to increase their business and volumes”.
The Safmarine Benguela, the second of two new 3100 teu containerships to be delivered to Safmarine in 2009, was named in Korea last week.
The name of the vessel – to be deployed on the Europe-South America service – was inspired by the Benguela current which flows along southern Africa's West Coast.
The Safmarine Benguela ... to be deployed between Europe and South America.
COMPILED AND PRINTED IN ONE DAY
30Updated until 11am March 2009
Updated daily on Cargo Info Africa – www.cargoinfo.co.za
INBOUND BY DATE - Dates for sailing: 06/04/2009 - 20/04/2009
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)ESL Ethiopian Shipping Lines (Diamond Shipping)EMC Evergreen Line (Green Africa Ship.)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
