FREIGHT & TRADING WEEKLY FOR IMPORT / EXPORT DECISION-MAKERS FRIDAY 21 April 2017 NO. 2243 SMS costs R1.50 SUBSCRIBE SMS ‘now’ to 45633 Special feature – Technology in Freight PAGE 4 FTW7913 www.leebotti.co.za email: [email protected]OPERATIONS MANAGER CAPE TOWN R960k CTC per annum Dynamic and internationally recognised freight forwarder seeks driven leader to oversee their thriving operation! Multimodal expertise & sound technical skill coupled with the ability to lead & motivate an energetic team essential. Tel: Malika (021) 418-1084 COUNTRY MANAGER GAUTENG Senior Package Seasoned General Manager with 8 – 10 years industry experience coupled with proven business development skills sought to assume responsibility & ensure growth. Driven, dynamic and client centric key ingredients for this senior role. Tel: Kim (011) 452-0204 SALES DIRECTOR GAUTENG Senior Package Executive level role requires proven sales background, strategic planning, execution and delivery. Oversee national operation with your previous experience on EXCO, drive and determination to succeed. Solid freight background and sales drive highly sought. Tel: Kim (011) 452-0204 SEAFREIGHT MANAGER GAUTENG R480,000 – R600,000 Exciting role for hands on manager who has a passion for operations and ability to lead a small team. Focus on client service delivery, negotiate rates, ensure optimal success and profit for division and reap the rewards. Tel: Kim (011) 452-0204 OPERATIONS / SYSTEMS MGR GAUTENG R540,000 Your solid Clearing & Forwarding multimodal technical know-how, customs expertise and passion for systems sought to play a lead role, overseeing an operational team relying on your expertise. Provide guidance, insight and empower a willing and eager team. Tel: Kim (011) 452-0204 REGIONAL COMMERCIAL MGR DURBAN Senior Package Represent & promote the Africa trade for the East & South Africa trade regions for this global shipping line. Develop commercial activity, & co-ordinate pricing & cargo flow. Tertiary Degree ess, plus senior mgmnt & leadership exp within a liner environ. Tel: Jill (031) 265-8474 FTW2197SD Alan Peat The seminal concept behind the government’s “Draft Comprehensive Maritime Transport Policy” (CMTP) is a dream likely shared by many in the SA shipping industry – that a significant proportion of SA’s international, along with all its coastwise, cargoes should be carried by SA-registered ships. But just how this is going to be legislatively achieved is not clear in the 120- page policy document, nor whether it is going to be encouraged by incentives or exerted by penalties. Cabinet approved the draft CMTP for public comment earlier this year. On behalf of the SA Association of Ship Operators and Agents (Saasoa), Tony Norton, maritime legal specialist and director of law firm ENS, said the draft document had to be seen as being purely for comment – which, in its turn, could be expected to influence the eventual legislation. “But there’s one thing you can be sure of,” said Norton. “This will eventually become part of SA life.” Edmund Greiner, partner in Shepstone & Wylie, head of its international trade and shipping department in Cape Town, and current president of the Maritime Law Association (MLA), also felt that interpretation at this stage was hindered by lack of detail. “The problem is that this document is policy, but with no clear indication of how this would be implemented by legislation. Until this happens, it’s difficult for us to comment." However, he did point to two areas which, unless the current legislation is amended, will hinder the policy’s basic intent. The first was related to something which, for shipowners, is the most vital selling point of any ship’s register – just how beneficial is its tax regime. But, according to Greiner, given the present tax laws in this country, the policy’s stress on all coastwise shipments being by SA-flagged vessels, Carrot or stick approach to SA’s maritime transport policy? To page 16 Minister of Finance Malusi Gigaba will embark on an international road show to the United States (US) this week to “restore investment confidence” in South Africa. He is scheduled to attend the annual Spring Bank Meetings which kick off in Washington this Friday. Delegates from the World Bank and the International Monetary Fund are among the attendees. Following this, Gigaba is scheduled to meet investors in Boston and New York and will also meet ratings agency Moody’s in an attempt to avoid a third credit downgrade. Controversially, this road show bucks the trend by excluding the large contingent of high-profile civic and business leaders that traditionally accompany the finance minister. National Treasury spokesperson, Mayihlome Tshwete, confirmed that the minister would be travelling with Treasury officials only. Democratic Alliance Shadow Minister of Finance, David Maynier, said this raised “serious questions” over Gigaba’s ability to convince banks, ratings agencies and investors that there would be no policy uncertainty. Gigaba flies solo on first investor road show Minister of Finance, Malusi Gigaba.
Transcript
FREIGHT & TRADING WEEKLY
For import / export decision-makers FRIDAY 21 April 2017 NO. 2243
R960k CTC per annumDynamic and internationally recognised freight forwarder seeks
driven leader to oversee their thriving operation! Multimodal expertise & sound technical skill coupled with the ability to lead
& motivate an energetic team essential.Tel: Malika (021) 418-1084
COUNTRY MANAGER GAUTENG
Senior Package Seasoned General Manager with 8 – 10 years industry experience
coupled with proven business development skills sought to assume responsibility & ensure growth. Driven, dynamic and
client centric key ingredients for this senior role. Tel: Kim (011) 452-0204
SALES DIRECTOR GAUTENG
Senior Package Executive level role requires proven sales background, strategic planning, execution and delivery. Oversee national operation with
your previous experience on EXCO, drive and determination to succeed. Solid freight background and sales drive highly sought.
Tel: Kim (011) 452-0204
SEAFREIGHT MANAGER GAUTENG
R480,000 – R600,000Exciting role for hands on manager who has a passion for operations and ability to lead a small team. Focus on client
service delivery, negotiate rates, ensure optimal success and profit for division and reap the rewards.
Tel: Kim (011) 452-0204
OPERATIONS / SYSTEMS MGR GAUTENG R540,000
Your solid Clearing & Forwarding multimodal technical know-how, customs expertise and passion for systems
sought to play a lead role, overseeing an operational team relying on your expertise. Provide guidance,
insight and empower a willing and eager team. Tel: Kim (011) 452-0204
REGIONAL COMMERCIAL MGRDURBAN
Senior PackageRepresent & promote the Africa trade for the East & South Africa trade regions for this global shipping line. Develop commercial activity, & co-ordinate pricing & cargo flow. Tertiary Degree ess,
plus senior mgmnt & leadership exp within a liner environ.Tel: Jill (031) 265-8474
FTW2197SD
Alan Peat
The seminal concept behind the government’s “Draft Comprehensive Maritime Transport Policy” (CMTP) is a dream likely shared by many in the SA shipping industry – that a significant proportion of SA’s international, along with all its coastwise, cargoes should be carried by SA-registered ships.
But just how this is going
to be legislatively achieved is not clear in the 120-page policy document, nor whether it is going to be encouraged by incentives or exerted by penalties.
Cabinet approved the draft CMTP for public comment earlier this year.
On behalf of the SA Association of Ship Operators and Agents (Saasoa), Tony Norton, maritime legal specialist and director of law firm
ENS, said the draft document had to be seen as being purely for comment – which, in its turn, could be expected to inf luence the eventual legislation.
“But there’s one thing you can be sure of,” said Norton. “This will eventually become part of SA life.”
Edmund Greiner, partner in Shepstone & Wylie, head of its international trade and shipping department in Cape Town, and current
president of the Maritime Law Association (MLA), also felt that interpretation at this stage was hindered by lack of detail.
“The problem is that this document is policy, but with no clear indication of how this would be implemented by legislation. Until this happens, it’s difficult for us to comment."
However, he did point to two areas which, unless the current legislation is
amended, will hinder the policy’s basic intent.
The first was related to something which, for shipowners, is the most vital selling point of any ship’s register – just how beneficial is its tax regime.
But, according to Greiner, given the present tax laws in this country, the policy’s stress on all coastwise shipments being by SA-f lagged vessels,
Carrot or stick approach to SA’s maritime transport policy?
To page 16
Minister of Finance Malusi Gigaba will embark on an international road show to the United States (US) this week to “restore investment confidence” in South Africa.
He is scheduled to attend the annual Spring Bank Meetings which kick off in Washington this Friday. Delegates from the World Bank and the International Monetary Fund are among the attendees.
Following this, Gigaba is scheduled to meet investors in Boston and New York and will also meet ratings agency Moody’s in an attempt to avoid a third credit downgrade.
Controversially, this road show bucks the trend by excluding the large contingent of high-profile civic and business leaders that traditionally accompany the finance minister. National
Treasury spokesperson, Mayihlome Tshwete, confirmed that the minister would be travelling with Treasury officials only.
Democratic Alliance Shadow Minister of Finance, David Maynier, said this raised “serious questions” over Gigaba’s ability to convince banks, ratings agencies and investors that there would be no policy uncertainty.
Gigaba flies solo on first investor road show
Minister of Finance, Malusi Gigaba.
2 | FRIDAY April 21 2017
DUTY CALLS Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY
Publisher Anton Marsh
EditorialEditor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterDeputy Editor Adele MackenzieEditorial Assistant Nicole JacobsPhotographer Shannon Van Zyl
CorrespondentsAfrica/ Port Elizabeth Ed Richardson Tel: (041) 582 3750Swaziland James Hall
Problem solved.Supply Chain Solutions | Dedicated Contract Carriage | Transportation Management and Broking | Less-than-Truckload Distribution Courier/Express Parcel | Short Haul Shared and Dedicated Warehousing Line Haul | Mining Supplies | Freight Distribution | Bulk Mining Transportation Fuel Distribution
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FTW7770
• Transport and Cabotage• Container Surveying• Container Sales, Rentals and Leasing• Clearing and Forwarding
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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Special and Extra AttendanceThe South African Revenue Service (Sars) has released its Customs External Policy for Special and Extra Attendance, which is effective from 06 April. To summarise: (a) Clients are required to apply to Customs where special or extra attendance is required in the supervision of: (i) Receipt of sight bill of entry; (ii) Export under customs supervision for: (A) Unpack and repack at the request of the client; (B) Temporary imports; and (C) Examination without prejudice; (iii) Destruction of goods; and (iv) Embargo release. Also included in this document are (b) the charges levied for special and extra attendance.
Manage Diesel Refund CalculationsSars has released its Excise External Policy to Manage Diesel Refund Calculations, which is effective from 05 April. To summarise, it applies to diesel refund registrants claiming a refund
in terms of rebate item 670.04 of schedule 6 to the Customs and Excise Act 91 of 1964.
2017 WCO Knowledge AcademyThe World Customs Organisation (WCO) has announced that its Knowledge Academy for Customs and Trade will, for 2017, host a week-intensive academy from June 19-25, focusing on the development of technical skills for customs and trade practitioners at its headquarters in Brussels, Belgium.
The WCO expects to bring together the foremost experts in Customs matters to meet the demands of a complex international and cross-border trading system. Business professionals, customs managers and administrators, border agency officials, international organisation representatives, and academia will benefit from the intensive interactive discussions of the most pertinent topics in the customs environment today.
The courses will be
led by technical experts widely respected in their various fields and will also include instructors from private sector companies, government institutions, and academia. The primary objective of the academy is to provide intense training for customs and business practitioners and is open to all interested participants.
Registration is free for one participant from each WCO member administration. A fee applies for additional participants from WCO member administrations and for non-WCO members. The public sector learning track will have interpretation in English and in French.
Kuwait 109th RKC partyOn 13 April Kuwait became the 109th contracting party to the International Convention on the Simplification and Harmonisation of Customs Procedures (Revised Kyoto Convention or RKC) and the 69th contracting party to the Convention on Temporary Admission (Istanbul Convention).
The RKC entered into force on 03 February 2006, and the Istanbul Convention on 27 November 1993.
2017/18 Trade recovery expectedAccording to the World Trade Organisation (WTO), growth in the volume of world merchandise trade is expected to rebound from its tepid performance in 2016 to 2.4% in 2017.
Duty Calls Watch ListComment on the Sunset Review of anti-dumping duties on frozen bone-in portions of chickens (fowls of species gallus domesticus), is due by 24 April; and on National Treasury’s diesel fuel tax refund system by 15 May.
FRIDAY April 21 2017 | 3
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Air & Seafreight Forwarding - Customs Clearing - WarehousingLogistics Services - Air Charter Services - Express Services
Johannesburg T: + 27 (0) 11 409 9700Cape Town T: + 27 (0) 21 385 0205Durban T: + 27 (0) 31 581 0000 East London T: + 27 (0) 43 736 6851Port Elizabeth T: + 27 (0) 41 582 3500
The problem of lengthy container stoppages and examinations by the SAPS border police in both Gauteng and the Port of Durban appears to have eased off after being headlined by FTW last September.
Our switchboard had been
inundated with complaints from importers, agents and shipping companies who were disturbed that these time- and
money-consuming examinations
were being “unnecessarily” and “wastefully” added to those
already conducted by both the SA
Revenue Service (Sars) customs and
the National
Regulator for Compulsory Specifications (NRCS).
As we reported at the time, this had led to a host of container delivery delays, dissatisfied importers and their seriously inconvenienced customers. Complainants also pointed to the fact that they were having to lay out considerable amounts for container transport and depot stowage, and also losing out because of order cancellations or late-delivery fees.
It all got so bad that some sort of legal class action was hinted at.
But before it got to that stage, complaints were registered directly with SAPS in Durban, and in Gauteng tabled by the SA Association of Freight Forwarders (Saaff) before
the Border Control Operational Coordinating Committee (BCOCC) – which involves government institutions in the border control and security framework, including
SAPS, Sars and the NRCS. And these tactics appear
to have succeeded. According to Carl Webb, MD of Project Logistics Management in
Durban and a member of both Saaff and the Road Freight Association (RFA), the fast-accelerating border police stoppages suddenly had the brakes applied.
“We registered a number of complaints and queries with SAPS about the frequency of the stoppages and the worrying length of time the examinations consumed,” he told FTW. “And these seem to have got through. We haven’t seen any unjustified stoppages for quite a while.”
The high-level complaint from Saaff also had an effect, according to CEO, Dave Logan. “We had meetings with the BCOCC in Gauteng,” he said. “And, while SAPS is still stopping containers, the turnaround time is most definitely much quicker. Also, our relationship with the authorities has improved.”
Some respite from border police stoppages
MBABANE – Swaziland’s parliament is calling for an inquiry into the non-starting Swazi Airways, which was to be the last immediate hope of salvaging the country’s expensive but hardly utilised King Mswati III International Airport (KM3 Airport).
“Based on the promises made by the airline, which is fully financed by government, I advised clients that the airport would be fully functioning for direct air freight deliveries from Europe by this time. It’s not happening, and I don’t see it happening,” Sandile Nxumalo, a Manzini-based business consultant, told FTW.
Since the airport’s
opening, only Swaziland Airlink has operated there, with one route to and from Johannesburg.
The good news is that Swaziland Airlink has remained solvent. The airline released to FTW a memo in 2013 predicting bankruptcy because its core client base, business travellers, would find it less time consuming to drive from Mbabane to Johannesburg than across Swaziland to the remote KM3.
After the airport was opened, Swaziland government officials hired consultants to find out why international air carriers were shunning the facility. Requesting money from parliament to build a
new airline from scratch, government officials told parliament that because Swaziland was not a primary destination for people f lying into Africa, a feeder airline was required to ferry passengers to their destinations throughout southern Africa. Swazi Airways was created to be that regional air carrier. The process began of creating a new airline out of the government budget.
In February 2016, the month Swazi Airways announced f lights would commence to Cape Town, Durban Harare and Mumbai, the firm leased a B737-500 jet from Star Air in South Africa. An inaugural f light for the
media was scrubbed at the last minute and no passenger f lights to any destinations ever took place. This year the company pulled out of the lease agreement with Star Air at a cost of about R500 000 due to Global Hub, the agency that arranged the deal.
Confused by mixed signals
that the airline was on one hand about to purchase rather than lease an aircraft and, on the other hand, that the company was requesting new monies to pay staff as operations wound down in preparation for closure, parliamentarians want an investigation. – James Hall
Call for inquiry into grounded Swazi Airways
Non starter ... Swazi Airways was to be the last immediate hope of salvaging the country’s hardly utilised King Mswati III International Airport (KM3 Airport).
While SAPS is still stopping containers, the turnaround time is most definitely much quicker. – Dave Logan
“
TECHNOLOGY
4 | FRIDAY April 21 2017
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Tristan Wiggill
W hile fuel has had the most overbearing inf luence on
assets and f leets, data is set to be the most far-reaching element in future changes to the supply chain.
How we use data will determine how markets evolve. It will facilitate better decision making, which is becoming increasingly complex. It will help make decisions in shipping, forecasting and demand and shape our responses to customer feedback.
The biggest change we’ll see will be the integration of huge amounts of unstructured data which will be used to make important commercial decisions.
Data will help us become
less reactive and more predictive in our analysis of our businesses. Companies will anticipate change better and be equipped to respond earlier.
However, the move towards predictive applications can only be possible through the provision of real-time data
flows, from material f lows to driver monitoring to inventory.
Data will allow service providers to adjust to changes in demand and create end-to-end visibility,
while assisting with risk mitigation.
Amazon is taking predictive analytics to the next level. It now wants to ship products before people even order them, patenting what it calls ‘anticipatory logistics’, where packages will wait with shippers or sit in transit on trucks until the orders arrive.
The company plans to box and ship products it expects customers within specific areas to want, based on a number of factors. These include previous orders, product searches, wish lists, shopping cart items, returns, and even how long your mouse cursor hovers over particular items on its website.
Online market places and mobile-based services will continue to be highly disruptive to middle men and brokerage firms.
Companies will continue to combine different aspects within entire eco-systems. For example, Flexport, which describes itself as a “freight forwarder for the internet age”, collaborates with credible freight forwarding companies that need sea and land freight fulfilment.
By providing a web-based app, it offers real-time visibility of shipments, so they can be considered a cloud-based global control tower that
provides access to a network of global logistics players.
The app allows people to book shipments, while providing real-time tracking of freight movements. And it manages all the product data as well.
Transportation visualisers like TransViz and Uber Freight are further examples that fall under mobile-based service models.
Uber Freight is a mobile app designed to match truck drivers to shipper needs while calculating factors like rates, routes and schedules.
Applications like Uber Freight will fulfil a number of processes within transactions, including delivery status, despatch load finding, driver payments as well as critical real-time information on consignment, from pickup to delivery.
In North America alone $20 billion is lost on empty miles and excess capacity on trucks annually.
The pay-off from business models like this is pretty obvious when we look at improved asset utilisation and fuel efficiency across company f leets.
Data – the new oil
Amazon is patenting what it calls ‘anticipatory logistics’.“
The industry is holding its breath for the long-anticipated new Customs Control Act and Customs Duty Act, which will bring the benefits of better technology and predictable processes, says Easyclear general manager Michael Henning.
“This will facilitate improved efficiencies for trade, reducing the cost of doing business.”
According to Henning, some of the mechanisms in the Control Act have already been implemented – such as the cargo reporting processes –
and have resulted in improvements in cargo reporting for air, road and sea modalities.
“The registration and licensing of entities appears to be high on SA Revenue Service’s agenda and is expected to be achieved in 2017.
“It is anticipated to secure the supply chain from a Sars perspective, but it’s a huge task and requires all currently registered entities to re-register – which has been cause for some trepidation from the industry.”
Industry braces for new Customs acts
FTW7985
Where technology disruptors in emerging markets are changing the way you do business, let EASYCLEAR enable your business
Contact our sales team for an obligation free demonstration.
6 | FRIDAY April 21 2017
TECHNOLOGY
Shifting Your World Through Innovative Technology SolutionsReal Time Global Tracking | Self-Service Through EON | Automated Documentation Sending | EDI
Intergration | Client Portal | Other IT Solutions
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FTW7962 FTW7863
Domestic and Cross-Border transport by road and rail
Make way for freight’s autonomous futureTristan Wiggill
The supply chain of the future will be leaner and faster, but most importantly,
it will move towards self-orchestration or become completely autonomous.
The current poster child of autonomisation is drone delivery, with a lot of the conversation driven by Amazon after it made public its last mile plans.
This was followed by Parcelcopter from DHL, which has been tested successfully in Germany, delivering medication in remote areas.
Australian start-up Flirtey recently conducted the first FAA-approved drone deliveries in North America and Amazon has gone a step further,
defining airspace regulations for drone deployment. These have been accepted across many countries and today, commercial drone delivery is quite well regulated across the world.
According to drone regulations, airspace up to 200 feet is reserved for low-speed aircraft, video inspection drones and localised traffic drones to survey traffic conditions and performance.
Meanwhile, delivery drones will soon operate within a high-speed transit corridor, between 200 and 400 feet. No-fly zones will separate unmanned aircraft from manned passenger aircraft, which will be used for emergency deliveries.
Back on the ground, delivery vehicles are expected to become
partly or fully autonomous in the next 15 years.
We have already seen the full autonomisation of forklift trucks, with companies like Toyota deploying numerous automated warehouse solutions around the world.
It is not surprising as human travel within warehouses is the most unproductive movement in the supply chain. And by taking humans out of forklifts, we can reduce picking process time by 400%.
By 2030, truck platooning – where trucks are managed by state-of-the-art driver assistance technology – will be mainstream. It is envisioned that truck platooning alone will offer a saving of 20% on operational fuel costs.
Trucks will travel together in very close proximity,
communicating wirelessly with each other. Not only will they have better fuel efficiency, they’ll be safer too. These platoons will help improve traffic flow by travelling at constant speeds and will boast drastically reduced braking response times.
Autonomous ships are on the horizon, too. In October last year, the Norwegian Maritime Authority and the Norwegian Coastal Administration signed an agreement allowing for testing of autonomous ships in the Trondheim fjord in central Norway.
With collaborators from across the spectrum of maritime and technology, this project is a world first, bringing innovative partners together in what is effectively a huge
natural ‘laboratory’ to develop and pilot ideas that could transform the very nature of shipping.
Rolls Royce announced it would be launching autonomous ships in 2030. These ‘ghost ships’ will set sail without crews, governed by a captain who sits in a simulator on shore.
Big fuel savings will be achieved by dividing non-urgent cargo on autonomous ships and, by reducing travelling speed by 30%, companies in the future will save around 50% on their fuel costs.
FRIDAY April 21 2017 | 7
TECHNOLOGY
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There is no denying that the game is changing for the freight forwarder who needs to embrace industry disruptors that improve visibility and collaboration with industry stakeholders to remain competitive and offer value.
That’s the view of Easyclear general manager Michael Henning who believes that transparency, digitalisation and innovation through the use of technology are the way to go.
“The likes of Uber Freight and driverless trucks are innovations that are creating a new market and value network,” says Henning.
“The model will effectively eliminate the middleman and offer the shipper real-time pricing for the movement of goods based on supply and demand. It will leverage off technology to share data automatically, providing smarter transport
solutions in the marketplace – and ultimately a more cost-efficient model for the business and clients.”
While it may be uncomfortable for traditional operators, in the software environment in particular it’s all about innovation and keeping ahead of the curve.
At Easyclear there are several innovations in the pipeline, says Henning.
“We are writing a web version of our current application, with the aim of offering both a locally hosted or cloud hosted service. Our long-term vision is to have Easyclear running on the web for all our clients, accessible through any device and with
the ability to connect to the internet from anywhere in the world.”
And while the software solutions space has attracted several new players, Henning
believes Easyclear is one of a handful of software service providers that offers a suite of products catering to the customs broker, managing all aspects of the supply chain
across all modalities and incorporating accounts or financial modules.
“Many new software solution companies are focusing on niche markets and do not offer a comprehensive software suite that integrates
with third party software solutions.”
But quality digital solutions are only part of the equation – equally important is the human interface.
“We believe in partnering with our clients and our customer-centric approach to software has resulted in many innovative solutions, leveraged off technological advances, to provide smarter solutions that embrace the disruptors that are currently trending in the industry – leading to a changing industry that will be sustainable and cost efficient in the future.”
'Embrace industry disruptors to remain competitive'
Easyclear is one of a handful of software service providers that offers a suite of products.– Michael Henning
“
TECHNOLOGY
8 | FRIDAY April 21 2017
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Joy Orlek
T his month sees the launch of a new road freight app that will enable customers
to book a truck, get a quote, track the cargo and receive proof of delivery at the touch of a button.
Developed for Teralco Logistics in response to customer requests for a system that offers transparency and clear communication lines, the app bridges the gap between transporters and their customers, says Teralco managing director Terence Odendaal.
“Customers need real-time information flow,” says Odendaal, “and that’s what the app provides.
“At the push of a button, the app picks up the customer’s location. All he needs to do is enter the date and time of collection, details of the load, click submit and he’ll get an immediate quote. If he accepts the quote, the truck will be on its way. And from the moment the truck is despatched the customer will have full visibility of its location and estimated time of arrival at its
destination.”And while it may
appear to be the ‘Uber’ of logistics,
there’s an important differentiator,
says Odendaal – and that’s the human interface.
“You can’t fully automate a logistics system. You have to have experienced manpower on the back end who fundamentally understand the intricacies of logistics. We have a qualified and experienced operator sitting in the background who is linked to the system at all times and can provide input to the system and chat with the customer online within the app.
“A lot of customer requirements are highly bespoke and can’t be automated. Our expertise adds that extra dimension to the system.”
And as it drives up efficiencies, so it drives down costs.
“Logistics costs in South Africa are far too high – and the main reason is inefficiencies. We believe this app will eliminate a lot of those inefficiencies. For example, if a customer needs to move cargo from Durban
to Johannesburg most service providers will quote a shuttle rate because they don’t have a truck in Durban. This app can join the dots between one of our contractors or our own trucks that may already be in Durban, looking to come back to Johannesburg. It’s a win win for the customer – who pays a much lower rate – as well as the transporter who sweats his assets more effectively.”
In terms of routing and scheduling, the app provides directions to the driver and allows the customer to see where the truck is and to interact over the app to make sure the driver is on time. As
soon as the load is collected the customer gets the update.
And instead of signing the proof of delivery
electronically, the transporter will take a photograph of the signed POD and upload it to the system so that it’s instantly available and the customer can be invoiced immediately.
The app, which will initially be
used on domestic routes, will be rolled out in phases across the country.
Teralco Logistics specialises in road freight logistics domestically and over-border, using its own f leet of trucks as well as subcontractors.
Quote, track and receive POD at the touch of a button
All the customer needs to do is enter the date and time of collection, details of the load, click submit and he’ll get an immediate quote.– Terence Odendaal
“
A fully automated reefer container monitoring system has moved into action at the Port of Hamburg's C Steinweg multi-purpose terminal.
“As a rule, reefer containers are manually checked by staff at cargo handling terminals at
specific intervals, usually of between four and eight hours, for normal functioning, temperature, humidity and other parameters,” a port spokesman said.
The new system, developed by Austrian technology group Identec
Solutions, records, notifies and processes all data automatically.
“Since the end of 2016, a monitoring device tag has been attached magnetically to every incoming reefer container at C Steinweg as an automatic link with the container’s controller – and
the system is compatible with all current reefer manufacturers," the spokesman said.
Once connected, the tag relays relevant reefer data every 15 minutes by radio signal. Should any discrepancies occur, these generate an automatic
alarm signal facilitating an immediate response.
When the box leaves the terminal, the tag is removed and used for the next container that arrives.
All data handled remain archived in the system and can be retrieved in the event of enquiries or insurance cases.
Reefer monitoring goes digital
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TECHNOLOGY
10 | FRIDAY April 21 2017
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Anticipating market requirements while moving more quickly to deliver solutions is the only way to succeed, says Stephen Knott, executive of systems developer GoSolutions, part of the GoGlobal group of companies.
“The pressure to innovate and deliver better integrated services that allow for more efficiency and cost savings is increasing,” he says. “Technology within our company now plays a key strategic role that we are continuously investing in as well as developing.”
As part of its ongoing online initiatives, GoSolutions has developed a mobile application for GoReefers Logistics that can be accessed on any smartphone or tablet regardless of where in the world or what time of the day.
“This enables our clients to access their data and cargo information online in real time, ensuring the decisions they take are not only informed but also immediate. Ultimately it allows for greater control over their bottom line,” says Michael Goosen, GoReefers IT manager.
The app allows for the advanced tracking of freight through integrated EDI systems anywhere in the world, while live container
and shipment bookings can be made. It is also integrated with online tracking software so cargo can be tracked at all times. This feature is enhanced with customisable push-notifications which provide information on arrivals or delays in transhipment.
“A search function to indicate whether a PUC is
blackspot listed or not has been incorporated as well. This is updated daily as the list gets updated,” says Knott. “It also allows the user to view sailing schedules and container packing lists, both of which can be emailed to the user via the app.”
It also notifies of bookings with stacks closing or SI cut-offs.
“It is about delivering meaningful information to the client that they can access where it suits them best - ultimately allowing for more efficiency.”
The app is available online at no cost and involves a short registration process. The user-friendly tool increases client engagement, allowing them more control and insight, says Goosen.
“Industry is demanding more efficiency throughout the supply chain and technology allows us to do just that.”– Liesl Venter
T echnology in freight is not new. What is new is how we use it, says TSI
Central Station CEO Clifford Blackburn.
“There is a revolution in the freight industry. First to market with one view, connected to multiple platforms, with the ability to use dashboards to change or make decisions, order or re-direct goods is the only way clients will operate,” says Blackburn who believes that embracing technology is non-negotiable.
It’s a far cry from the technology of the past few decades.
“Every client wants a ‘portal’ so that they can log in and see where their shipment is. As South Africans we are either too busy or lazy to go and look for our goods. We want to be told and we want to be told in the format we want.
“We want one platform that allows us to plan, execute and monitor. Virtual warehouses are a reality. Whether the client’s goods are in a warehouse, container, truck, train or bakkie, they are part of their inventory and need to
be reflected as such. The luxury of having excessive stock holdings is over – gone are the days of keeping a warehouse full of stock in the hopes of selling it. Shop fronts have changed to websites, deliveries are expected in hours instead of days or weeks," says Blackburn.
“Trucks are smarter (they drive themselves), ships have greater intelligence than before, and systems are smarter too; they can tell you when to order and how to order. Reporting is live. Clients want the information and they want it live and now.”
For the past ten years, TSI has been developing a system that does exactly what
the industry requires today, says Blackburn.
And while one of the biggest fears is that technology will replace people, this could not be further than the truth, in his view.
“You need smart people to drive the systems – people with experience to get the programmers
to write the systems. The success of our business over the past ten years has been the combination of experienced people and a system that acts like their personal assistant, telling them what to do and when.”
These instructions are currently relayed in text format – but that’s also about to change.
“Iphones have Siri, and TSI hopes to deliver something similar when it comes to freight. We may have to wait a year or so but soon you will be able to ask your device for a costing, a rate and an expected delivery time – and your device will let you know
when it is on the way, just like the food apps do today.”
‘You need smart people to drive systems’
Iphones have Siri, and TSI hopes to deliver something similar when it comes to freight.– Clifford Blackburn
“
A mobile application for GoReefers Logistics can be accessed on any smartphone regardless of where in the world or what time of the day.
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T he recent launch by neutral consolidator CFR Freight of a third party airfreight
rates management system is gaining traction in an information-hungry industry.
“We spent a large part of last year developing, integrating and launching the WebCargoNet system which helps the customer capture all of their promo, contract and market tariffs for all of their carriers around the country
into an online platform,” says CFR airfreight general manager, Stephen Bishop.
“By using the system, the forwarder is able to quote, find the closest airport for the shipment, have a centralised track and trace
portal, and view all the airline schedules around the world for PAX and CAO needs. And the
portal can be used on a mobile device or laptop.”
WebCargoNet is currently working on integrating it into several operational systems to create seamless pricing and invoicing.
CFR has worked in concert with the WebCargoNet team to tailor the system for the local market, says Bishop, “and we have secured the local agency to sell the platform – which we believe can provide a
competitive edge – in South Africa.
“We know the industry is not just about price – and
often the first person able to quote puts themselves in the best position to secure the freight, as long as their client knows they are getting a market-related tariff. Speed to react is paramount – and that’s what this system offers.”
A demo video can be accessed on the CFR Freight website.
The forwarder is able to quote, find the closest airport, have a centralised track and trace portal, and view all the airline schedules.– Stephen Bishop
“A Zimbabwean inter-ministerial task force set up to probe issues around the influx of illegal imports has come up with and approved recommendations to resolve the problem.
The Zimbabwean government is deploying technological interventions at border posts to crack down further on illegal imports.
This was announced last week by the country’s Minister of Industry and Commerce, Mike Bihma, who pointed out that interventions would include the use of high-tech gadgets at ports of entry to detect illicit or banned goods more efficiently.
Surveillance equipment to monitor border posts would also be deployed, he added.
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Global manifest system enables users to track EDI messages on a web-based platform.– Ridwaan Mohammed
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ACS Software Solutions has implemented a global manifest system that enables users to track EDI messages on a web-based platform, says general manager Ridwaan Mohammed.
“It’s a first of its kind system,” says Mohammed, “and allows for full transparency between stakeholders as well as accurate information upload and viewing by all parties.
“This, together with integration into customs programmes of neighbouring countries, makes life easier for our clients and their clients as well as transporters – with all systems acting as one through smart integration and live, up-to-date
information on any specific shipment.”
Technology is key to mitigating delays – and delays attract costs, says Mohammed. “Additional costs increase prices of goods and in the current environment everyone
is trying to keep costs down wherever possible.
“Newer technologies should always be about saving time and money – which is the end goal of every business.
ACS’s customs clearing software solutions – backed by clever system validations and integration into other systems – help customers to achieve this goal.”
In the technology space, keeping ahead of
the curve is critical, says Mohammed.
“With the upcoming implementation of the new customs acts and procedures that go with it, we are ready to implement solutions to problems that may occur during their implementation.
“We believe that training and communication together with advanced technology and support will ensure that ACS clients are always up to speed with the latest changes implemented by Sars.”
And in an increasingly competitive environment, Mohammed believes that the company’s track
record speaks for itself.“There is only enough
room for companies that offer the best solutions. We’ve seen a significant increase in our client base – and in client retention – with many clients who have been with the company since inception.
“We believe our support service levels have
also played a key role
in our growing market share.”
System facilitates full transparency between stakeholders
A fast-track approach to digitalisation is essential to the ongoing survival of the airfreight industry in an environment still plagued by overcapacity.
“Air cargo carriers and their clients must reinvent themselves and become more efficient, cost-effective and transparent to help prevent competitors from gaining additional market share,” said Gareth Joyce, president: cargo at Delta Airlines, adding that there was “lots of scope” for airlines to innovate.
“Instead of viewing other freight transportation modes as rivals, carriers should look to adopt their technologies and processes to improve their competitiveness,” he commented.
He believes partnerships with freight forwarders – who have experience with other modes of transport – could also lead to new solutions that would help modernise the air cargo industry’s processes. – Adele Mackenzie
‘Leverage existing technology’
14 | FRIDAY April 21 2017
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FREIGHT & TRADING WEEKLY
40 YEARS of containerisation
Snapshot of FTW readership latest figures
Industry distribution Importers, exporters, manufacturers Cargo services Airport lounges Other
What lies ahead?This special feature will examine in-depth the evolution of the freight industry – and the disruptors that are reshaping it at a rate of knots.
July 2017
Adele Mackenzie
The state road fund administrator, Zimbabwe National Roads Authority (Zinara), has agreed to a three-month grace period – from the date of implementation on April 1 this year – for transport operators to switch to the prepaid electronic transit coupon system.
Transit fees are charged on all foreign-registered trucks, buses and vehicles that use the Zimbabwe road network – and are currently collected manually at the border post.
The grace period was agreed at a meeting between representatives of the Cross
Border Road Transport Agency (CBRTA), Zinara and the Zimbabwean Ministry of Transport and Infrastructural Development (TID) late last month.
CBRTA senior manager for operations, Victor Dladla, told FTW that the transport agency had called for the grace period as certain operators needed more clarity on how the process worked.
Operators were concerned by the
application of the transit fees collected and administration of the revenue collected, especially in light of the current condition of Zimbabwe’s roads.
Permanent secretary at the TID ministry, Munesu
Munodawafa, attributed the road damage to incessant rains caused by Cyclone Dineo earlier this year. He said the ministry of finance and economic development had, to date, raised US$14.5 million of the US$100 million that was required for the emergency road repair programme.
“Zinara is also contributing to this mobilisation of financing and has to date funded repairs of strategic routes in Harare,” said Munodawafa.
He said the road fund agency – which took over the collection of road access and transit fees from the Zimbabwe Revenue Authority (Zimra) in 2013 – collected around $130 million annually from road access fees, vehicle licensing fees, transit fees and the fuel levy, among other revenue streams, for routine maintenance of roads.
Munodawafa added that the government would, in these three months, embark on a widespread awareness
campaign to educate transporters on the new system, its benefits and security features.
“We will possibly offer training to users of the system should there be a need for it,” he said.
The benefits of the prepaid e-coupon included improved security and reduced border congestion, he added. “If the
transit fee is paid up front, over a secure electronic platform, this could fast-track clearance at border posts.”
Dladla told FTW that questions and concerns received to date had been answered by the government. “The grace period will allow operators to continue using manual coupons until June 30,” he said.
Zim allows grace period for switch to electronic transit fee payment
Transit fees will help pay for damaged road infrastructure such as the Nkankezi Bridge on the Bulawayo-Masvingo highway.
If the transit fee is paid up front, over a secure electronic platform, this could fast-track clearance at border posts.– Munesu Munodawafa
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FRIDAY April 21 2017 | 15
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ABJ - AbidjanABU - Abu DhabiANT - Antwerp, Belgium BAR - BarcelonaBRH - B’HavenCAS - CasablancaCON - ConakryDAK - Dakar DAM - Damman, Saudi ArabiaDAR - Dar Es SalaamDBN - Durban DES - Dar es Salaam DOH - Doha, QatarELS - East London, SAGUN - Gunsan, KoreaHAM - Hambantota, Sri LankaHAR - Le Harve, France HUA - Huangpu, ChinaIMM - ImminghamJEB - Jebel Ali JED - Jeddah, Saudi ArabiaJPN - Japan
KIS - Kisarazu, Japan KOB - Kobe, JapanKOR - KoreaKUW - KuwaitKWA - Kwanngyang, KoreaLAS - Las Palmas LAG - Lagos LIB - Libreville LOB - Lobito, Angola LUA - Luanda MAP - Maputo MEL - Melbourne, Australia MDV - Montevideo MOM - Mombasa NAG - Nagoya NAM - NamibePDG - Pointe des GaletsPE - Port Elizabeth, SA PKG - Port Kelang POI - Pointe Noire, CongoPOR - PortugalPYU - Pyaungtaek, Korea
QNG - QingdaoREC - Recife, BrazilROT - Rotterdam SAL - Salvadore, BrazilSAN - SantosSAV - Savannah, GA SHA - Shanghai China SNR - Sheerness, UKSIN - Singapore SOH - Sohar, OmanSOU - Southhammpton, UKSRI - Sri Lanka TAM - Tamatave TEA - Tema, GhanaTIL - Tilbury, UK ULS - Ulsan, KoreaVIT - Vitoria, BrazilWVS - Walvis Bay, NamibiaYAN - Yangon, Myanmar YOK - Yokohama XIN - Xingang, ChinaZAR - Zarate
VESSEL VOY JPN SHA SIN DBN SAN MDV ZAR VIT ABJ TEA BRHASIAN MAJESTY 149 sld 12/04 20/04 02/05 12/05 17/05 18/05 25/05 - - 06/09
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EUKOR - AFRICA / ASIAVESSEL VOY XIN SIN MOM DAR DBN SIN NAM LUA TEA DAK ANTGRAND RACE 117 - 05/04 16/04 19/04 24/04 07/05 - - - - -MORNING CALM 113 17/04 24/04 06/05 08/05 14/05 - 20/05 22/05 26/05 30/05 06/06MORNING CROWN 115 - 11/05 23/05 25/05 31/05 - - 07/06 12/06 - 24/06
With the population of Africa expected to reach two billion by 2050 – more than China and India combined – the productive capacity of the continent needs to grow in order to find jobs for all the young people coming into the labour market, says David Luke, trade
expert and co-ordinator of the African Trade Policy Centre at the UN Economic Commission for Africa.
“And trade has a big role to play.
“Most successful trading countries are those that trade with their neighbours, but that has not been
happening to the full potential that it could in Africa,” he says.
Intra Africa trade amounts to 17% while in Europe this figure is over 60%.
“There is room for growth – and African leaders need to understand this.”
Although both the country and Transnet have suffered a credit downgrading, the parastatal seems little concerned.
Indeed, when FTW enquired about what this meant to them, Transnet spokesman Molatwane Likhethe sent us a statement headed: “Transnet well positioned to withstand downgrade”
“The company’s adequate liquidity levels,” it added, “will enable it to pursue its funding plan, thanks to management’s sharp risk management framework and sound relationships with financial institutions.”
Which means that Transnet’s multi-billion rand market demand strategy (MDS) – aimed primarily at port redevelopment and now well under way in its fifth year since its 2012 inception – will not grind to a halt.
The statement released to FTW included Transnet quoting the ratings agency, S&P Global Ratings.
“S&P,” it said, “maintained Transnet’s stand-alone
credit profile at BBB- (still considered investment grade in S&P terms), ref lecting the company’s strong financial metrics as it executes its multi-billion rand infrastructure investment programme.”
It also pointed out that: “Transnet continues to raise funds on the strength of its own balance sheet and receives no funding or guarantees from the national government.” So SA’s sovereign downgrading to “ junk” status plays no part in Transnet’s
development plans.This, as FTW expected,
encouraged Transnet group CE, Siyabonga Gama, to pat his management team on the back.
He said: “S&P’s affirmation and acknowledgement of the critical role that Transnet plays in SA’s economy as a provider of essential infrastructure services, is testament to the strong and agile manner in which Transnet management is navigating the tough macro-economic challenges.”
It was also pointed out that about 26% of Transnet’s debt portfolio had a credit rating clause with a trigger below sub-investment grade. “Between May and November 2016,” the Transnet statement added, “management proactively and successfully negotiated with its lenders to lower and relax the credit rating default triggers to below sub-investment grade.”
Group chief financial officer, Garry Pita, also released what, on the surface, are encouraging-looking financial figures.
He said: “The company has strong liquidity and has secured more than R16 billion in unused short-term credit facilities that are available within 24 hours, as well as long-term specific committed funding in excess of R15 billion. Furthermore, the company has access to the domestic and global capital markets through the domestic medium-term note and global medium-term note programmes amounting to R93 billion to meet its funding commitments.”
In its statement, Transnet reiterated that its “financial fundamentals remain strong” and its “stand-alone profile at investment grade” was a strong indication of that.– Alan Peat
Transnet continues to raise funds on the strength of its own balance sheet and receives no funding or guarantees from the national government.
“
MDS won’t grind to a halt – Transnet
Intra-Africa trade the solution
LAST WEEK’S TOP STORIES ON
Investigation under way following Customs stop of SA table grapes in ChinaInvestigations are under way into the circumstances surrounding the stoppage by Chinese Customs officials of a consignment of South African table grapes.
Drop in import and export containers through SA’s portsThe seven commercial ports in the SA ports system handled a lower volume of import and export containers (measured in numbers of TEUs) in March than in February.
Concern over fate of renewable energy programmeThe fate of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is one of the biggest concerns in the energy domain following President Jacob Zuma’s decision to reshuff le his cabinet and appoint Mmamoloko Kubayi as the new minister of energy.
Biggest ever container ship deliveredMaersk Line has taken delivery of its latest container ship – the largest in the world at 20 568 TEUS.
Calls to investigate SOEs’ advertising and sponsorship spendParastatals and government departments reportedly spent close to R13.9 million on sponsorships and promotions between 2014 and 2017, prompting calls for an investigation.
Global mining major sells off Eskom-tied assets in SAGlobal mining company Anglo American has announced plans to sell off its Eskom-tied thermal coal operations in South Africa.
Cape agri-sector reveals extent of fire damage lossesFire damage to the agricultural sector in the Western Cape amounted to just short of R200 million, according to the Western Cape Department of Agriculture.
MEDITERRANEAN SHIPPING COMPANY SA THE DEPENDABLE INDEPENDENT GENEVA SWITZERLAND
Alan Peat
Only a week after the SA Competition Commission (CC) handed over the Japan-based shipping company Kawasaki Kisen Kaisha (K-Line) to the Competition Tribunal for prosecution, the CC has now slapped another 10 charges on the K-Line table.
The initial case referred to what the CC termed “collusive tendering, price fixing and market division” by four lines in a cartel transporting Toyota vehicles by sea to and from SA between 2002 and 2013.
Of the other three – Mitsui OSK Lines (MOL), Nippon Yusen Kubushiki (NYK) and Wallenius Wilhelmsen Logistics (WWL) – MOL got off scot-free because it was the whistleblower. Then, in 2015 and 2016, NYK and WWL, along with Eukor Car Carriers, in which WWL has an 80% holding, settled with the CC to the tune of R215
million in administrative penalties. They also all agreed to cooperate in prosecuting K-Line.
The 10 new charges involve the same “collusive activities” and/or “prohibited practices” surrounding car-carrier transport of Toyota, Ford, BMW, Mercedes-Benz, Honda, Mitsubishi, Nissan and Suzuki motor vehicles on other sea routes to or from SA and different dates.
The commission is seeking administrative penalties of 10% of the company’s yearly turnover for each of the charges.
With the line faced with being caught between a rock and a hard place, and possibly subjected to multi-million rand administrative fines, FTW approached K-Line’s SA managing executive, Lance Pullan, for comments.
But he said he was unable to make any local statements on the matter. However, he did supply us with answers from
head office to a number of questions on our list.
Unfortunately, a large number of these answers were: “We would like to refrain from making any comments in this regard” or “K-Line is not in a position to comment”.
However, one answer was an explanation of CC’s media statement that it was prosecuting K-Line for collusion in respect of tenders for transportation of motor vehicles.
“The Commission has, since 2012, been investigating alleged collusive conduct in respect of the maritime transportation of certain motor vehicles to and from various jurisdictions," said the line. “K-Line has offered complete co-operation to the Commission throughout its very long investigation. The conduct that the Commission was investigating is the same conduct which the Japan Fair Trade Commission, European
Commission and American Department of Justice previously investigated.”
As to why the CC was only prosecuting K-Line, the answer read: “According to the media statement released by the Commission, NYK and WWL settled the investigation against them with the Commission during 2015 and MOL seems to be the leniency applicant.”
It also noted that the prosecution was aimed purely
at the line as a company, not individuals within it.
The other questions – Why it did not settle the matter with the CC; whether it intended arguing the case in court; whether it had engaged in collusive practices; whether it would pay compensation to the motor manufacturers; or how it felt about the potential 10% of annual turnover in administrative penalties – all went unanswered.
Carrot or stick approachFrom page 1
meets with a discouraging restriction.
“The tax relief given to vessels on SA’s bare-boat register (where the people who charter the vessel from the owner are responsible for taking care of such things as crew or provisions) only applies to international vessels,” he said, “not coastwise.
“Also SA labour laws are not attractive to foreign shipowners.
“It’s a great policy, but it’s too vague. Yes, we want more SA-flagged vessels and local crews. But only if the legislation is beneficial.”
Maritime lawyer Andrew Robinson, director of Norton Rose SA, also took a critical stance. “It’s very definitely a misguided policy,” he told FTW.
“You’ve also got to ask yourself: Is it going to give exporters an incentive to use SA-flagged ships? Or,
conversely, will it penalise them for not using locally registered vessels?”
He also suggested that, if he was a journalist, he’d be wondering how the government would get all the departments working together. “What is in that comprehensive plan to give us hope that the government will be able to get departments working together to unleash the potential of the ocean economy?”
K-Line largely non-committal over competition charges
