FRDA 6 October 2017 O. 2266 New Zim transit regulations...

FREIGHT & TRADING WEEKLY

For import / export decision-makers FRIDAY 6 October 2017 NO. 2266

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Air / Sea / Road Freight Multimodal TransportCustoms Clearance Warehousing & DistributionContainer Depot Corridors Logistics

Walvis Bay’s vision of becoming a gateway for neighbouring SADC countries has been given a boost with the addition of a new service by Pacific International Lines (PIL) and COSCO Shipping lines.

The 31-day service out of Shanghai will call every eight days on average.

“We look forward to regular shipments through the port of Walvis Bay

as Namport continues to persevere during this current economic climate,” says Namport commercial executive Immanuel !Hanabeb.

News of the introduction of the joint service will fuel speculation that China COSCO Shipping has plans to take over Singapore-based PIL following the July US$6.3-billion sale of Hong Kong’s OOCL to COSCO. The 260-metre COSCO Kawasaki docking in Walvis Bay on Saturday, September 30.

New line for Walvis Bay

Adele Mackenzie

Following “major delays and total border chaos”, the Federation of East and Southern African Road Transport Associations (Fesarta) is engaging with the Southern African Development Community (SADC) to “insist on a review” of the procedure by Zimbabwe Revenue Authority (Zimra) to implement new transit cargo regulations.

Last month Zimra

implemented its new Statutory Instrument (SI) 113 to “improve the management of transit cargo”, according to a statement by the revenue authority. The new legislative amendment – to Section 60 of the Customs and Excise Regulations – requires that “all road vehicles conveying goods through Zimbabwe shall have electronic seals placed on their cargo” at port of entry at a cost of US$30.

The seals are reportedly

to be paid for by transporters in US dollars and vehicles transporting bulk cargo and the like which cannot be sealed are to be escorted in convoys, organised by the Zimra commissioner. A transport operator, who spoke to FTW on condition of anonymity, said this was causing delays of up to five days.

“The costs of the seals and penalties add to the cost of crossing the Zimbabwean borders. In

addition, the increased delays caused by stops related to the new regulations are major barriers to effective trade,” he said.

Fesarta has lodged a non-tariff barrier (NTB) complaint highlighting that Zimra is not adhering to the new procedures for handling transit cargo.

The NTB complaint reads: “All transit cargo is being fitted with seals, despite the cargo already being sealed by the client at

loading point. Information from drivers indicates that currently only five trucks are being sealed per day.”

According to the complaint, trucks are then added to a list for transit escort. This is despite the official communication stipulating that only trucks carrying cargo that is not covered by a suitable tent/tarpaulin that cannot be sealed will be considered by authorities to be escorted. One incident reported to

New Zim transit regulations cause border chaos

To page 12

2 | FRIDAY October 6 2017

DUTY CALLS Riaan de Lange ([email protected])FREIGHT & TRADING WEEKLY

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of South Africatransparency you can see

Cold-rolled Steel Products Safeguard On 29 September the International Trade Administration Commission of South Africa (Itac) advised that the Trade and Industry Minister had approved its recommendation for the termination of the safeguard investigation into cold-rolled steel products.

The investigation was initiated on 29 July 2016, following an application lodged by the South African Iron and Steel Institute (SAISI), a non-governmental representative organisation serving the collective interests of the primary steel industry in South Africa. SAISI did so on behalf of ArcelorMittal South Africa (Amsa), the major producer of cold-rolled steel products in the Southern African Customs Union (Sacu).

Itac issued its Report No 537 containing its preliminary determination, and invited interested parties to comment on its

preliminary determination. On 29 November 2016 a public hearing was held where interested parties addressed Itac on whether a safeguard duty would be in the public interest. Taking all the information available to it into account, including all comments received during the investigation, Itac made a final determination that there had been a surge in the volume of imports of cold-rolled steel products into the Sacu market as a result of unforeseen circumstances, and further that the increase in imports was causing serious material injury to the Sacu industry. However, in calculating the possible duty to be imposed, Itac determined that Amsa was not experiencing a price disadvantage when comparing Amsa’s unsuppressed selling price with the landed price of the imports.

Itac’s reasoning is contained in its Report No 555 (final determination report).

Wheat and Wheaten Flour DutyThe South African Revenue Service (Sars) on 29 September announced an increase in the rates of customs duty, except for the Southern African Development Community (SADC), on wheat and wheaten flour.

The rate of customs duty on tariff subheadings 1001.91 (Seed) and 1001.99 (Other) increased from 37.93c/kg to 75.24c/kg, and on tariff subheadings 1101.00.10 (Brown wheaten meal produced by the milling of whole grains (the bran, germ and endosperm) (excluding separated wheat bran, separated wheat germ or separated wheat semolina or endosperm)) and 1101.00.90 (other) from 56.90c/kg to 112.85c/kg.

The reasoning is contained in Itac Minute 10/2017.

Phosphoric 8-digit TariffOn 27 September Sars

called for comment on the proposed insertion of tariff subheadings 2809.20.10 (of a phosphorous content of 78 per cent or more), and 2809.20.90 (Other) to distinguish between the acids used in the food industry and those used in the fertiliser industry.

Comment is due by 13 October.

Duty Calls’ WatchlistComment is due by 20 October on (i) Rebate items for flat-rolled iron or non-alloy steel products, (ii) the reduction in the rate of duty on canola/rape seed, (iii) Rebate items for I and H sections, of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded.

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Restrictions here to stay as drought hits Cape agri-exportersLiesl Venter

Western Cape exports are under threat as provincial officials search for solutions for the ongoing water crisis.

New restrictions introduced several weeks ago require all commercial water users to reduce consumption by 20% with immediate effect while all residents in Cape Town are restricted to only 87 litres of water per day.

The agricultural sector has been heavily affected by the ongoing drought and concerns are rising – especially with winter in the Cape officially over and 50% less rainfall recorded than was expected.

According to Helen Davies, chief director: green economy at the department

of economic development & tourism, the current drought can only be broken by three to four years of good rainfall.

“Projections at this point are that we will not be getting that. Rainfall in the Western Cape has systematically been reducing since around 1993, but it has now reached a level far worse than what has ever been experienced,” she said. “The effects of this drought are going to be long term and business is going to have to adapt to a new normal. The restrictions are here to stay.”

She said there were no projections for significant rainfall next year – and even if the province made it through the summer it would require good rains to see it through winter 2018.

“A lot of the focus has

been on Cape Town, but the drought is making an impact across the province,” she said.

The Western Cape was heavily reliant on its agricultural exports and the economic impact of the drought was a major consideration at present, said Davies.

Water is now regarded as a provincial risk as it becomes clearer that the crisis has only just begun and the worst is probably yet to come.

“There is understandably a lot of uncertainty at present,”

said Davies. “Low water supply, the quality of water, the curtailment of water and also the knock-on effect of higher water costs will have

an economic impact.”

She said the province was actively involved in looking at the impact of restrictions on water-dependent economic activity – including agriculture – and the impact

it would have on goods and services manufactured and produced in the province.

“Government has been

focusing on high intensive users in the agriculture and agri processing, construction and manufacturing sectors and the impact has been severe. Several farms are under threat of closing down, not to mention the impact on the quality of what farms produce as well as productivity,” said Davies. “There are concerns not only around the increase in prices of goods and services, but also that we might have to import products previously sourced locally and also the impact on our exports.”

She said reputational loss and decreased competitiveness were very real threats of the drought and much effort was going into planning and strategy to develop a long-term approach.

Several farms are under threat of closing down, not to mention the impact on produce quality.– Helen Davies

“

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While South Africa has continued to meet the criteria to benefit under

the United States African Growth and Opportunity Act (Agoa) – despite its current internal political and economic turmoil – it’s possible the country’s inclusion under the legislation could be terminated earlier than 2025.

This is the view of Virusha Subban, customs and excise and international trade specialist and partner at law firm Bowman Gilfillan, who said the country should not seek to remain a beneficiary to the detriment of the local economy. This after the imposition of conditions regarding US meat imports to SA which have devastated the local poultry industry and could be just the beginning of additional trade conditions.

SA is currently a beneficiary of Agoa which extends duty-free access across 6000 tariff lines to 38 African countries, although the country only

exports products on 400 of those lines. Key exports include cars, transport equipment, metal and chemical products, agricultural products and minerals.

“The current state of affairs regarding SA-US trade relations appears to be stable. These benefits are expected to remain in place in 2018,” she said.

“As things currently stand, it is likely that Agoa will come to an end in 2026, and will not be passed again. However, under the Trump administration, South Africa may be disqualified much earlier than 2025, particularly where other politics come into play, relating to the importation of chicken from the US and the impact this has on the domestic market,” she said.

“If South Africa does not

have access to benefits under Agoa, many jobs will be lost, and the economic growth from these exports will suffer.”

However, there had not been any official announcement regarding early termination and it appeared that the issues regarding the three meats (US chicken, beef and pork) exports

had been resolved, at least for now, she added.

“We are aware, however, that SA’s eligibility under Agoa for 2018 is being reviewed. Although the US views Africa as a continent of trading allies and partners,

if SA does not agree to make certain economic adjustments, such as with the American chicken exports, it does risk being disqualified,” Subban said.

“From an SA-US negotiations standpoint, it would appear that the issues

have been resolved. However, the negative impact on local chicken farmers and with a few leading supermarkets boycotting American chicken, it is too soon to say that the issues will remain resolved.”

Subban said the country was still meeting the political, socio-economic and other stringent conditions of Agoa.

“There have been many submissions by industries in SA made in support of SA’s eligibility for 2018. However, having regard to the negative impact on the domestic market, following the decision by SA to accommodate American chicken exports, it is unclear whether SA will continue to permit the elimination of the previously imposed barriers for the sake of participating under Agoa,” she said.

But in the interests of jobs and economic growth in other sectors she said the country might very well agree to continue with US chicken imports.

“However, to continue to blindly and ‘obediently’ adhere to US trade policies, is not what

was originally envisioned under Agoa. As much as it may be unilateral and non-reciprocal, it does provide African exporters an extra advantage and is good for the economy. However, SA should not seek to benefit under Agoa to a point that it is a disadvantage to the country.”

Subban added that it was also likely that the US could ask for further trade concessions under the 2018 review as the Trump administration was committed to aggressively breaking down all trade barriers on US exports which it considered unfair.

SA warned of possible early termination of Agoa

SA should not seek to benefit under Agoa to a point that it is a disadvantage to the country.– Virusha Subban

“

Vanguard has an expansive network of 15 owned offices, six owned container freight stations and 24 receiving stations.– Raymond Cutts

“

Agoa to end in 2026

SA may be disqualified earlier

Without Agoa many jobs will be lost

SA's eligibility for 2018 being reviewed

One of the key challenges for a consolidator importing from the United States is the major distances that need to be covered from supply source to place of receipt or port of loading.

It is critical to manage the movement of goods in the most effective way to deliver lead time advantage and pricing efficiency, in the view of Raymond Cutts, marketing

director of Vanguard Logistics Services (VLS).

“In order to do that, one needs a comprehensive infrastructure of container freight and receiving stations, a strong transport network and web tool solutions that allow complete visibility across the supply chain,” he said, adding that VL S delivered all of this.

He pointed out that the

company had an expansive network of 15 owned offices, six owned container freight stations, and 24 receiving stations. “This, coupled with four owned offices and four container freight stations in South Africa, delivers complete online visibility and control from end to end,” said Cutts.

He explained that the VLS web tools allowed visibility

in a number of ways, from quoting and ocean sailing schedules to visibility of bills of lading, shipping instructions, warehouse receipts and photos amongst others.

Cutts said the US continued to be a “significant trading partner”, with VLS offering weekly sailings between Los Angeles, New York, Atlanta and Chicago.

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Significant growth on the South Africa-South America route

will see the launch of additional frequencies by LATAM Airlines on the Johannesburg-Sao Paulo route from November 17.

“Since the introduction of direct f lights we’ve seen growing support from the cargo market – hence the increase to five frequencies per week from November,” Bryn Woolley, managing director of Aircross, the local general sales agent for

LATAM Cargo, told FTW.Woolley believes that the

introduction of direct f lights to all the major destinations via the airline’s Sao Paulo hub has been the catalyst for improved growth. “We offer daily wide-body and narrow-body capacity to almost all of the major destinations within South America via Sao Paulo. Those destinations not served directly via Sao Paulo can be serviced via one of our other main stations on the continent that have daily flights from the hub. We can

offer a very quick transit to all the major cities.”

Woolley says that until recently the South American market has been a “grey area” – a minefield for the uninitiated.

“Customs procedures must be 100% correct or your cargo will be held until the problems are rectified – which can incur extra costs and delays,” says Woolley, who is convinced that LATAM has played a key role in facilitating smooth transit of cargo.

“We pre-alert all of our

shipments to our customer service department, who in turn pre-alert the customs departments at Sao Paulo. Any discrepancies that are noted are reported back to our office and our staff can inform the customer prior to the cargo departing Johannesburg. This has alleviated a large percentage of the documentation delays that were experienced in the past.”

And while the entire network has seen volume growth, Woolley has

identified Chile, Mexico and Brazil as the star performers.

Additional frequency supports S America trade growth

The introduction of direct flights to all the major destinations via LATAM’s Sao Paulo hub has been the catalyst for improved trade growth.– Bryn Woolley

“South America offers significant untapped trade potential – and local exporters should be driving hard to break into the market.

That’s the view of Donald MacKay, director at XA International Trade Advisors, who told FTW that South America did not feature in the same way the US, Europe or even China did with South African exporters, even though the ability of South American markets to consume South African products was significant.

“I don’t think we think about South America much. We forget just how many people live in countries like Brazil – an astonishingly large country with a

population of around 200 million,” he said.

“Even though there are good wines produced in South America, there is probably a space on the shelves of many a Latin American country for us to increase our wine exports, for example.”

While SACU’s preferential trade agreement with Mercosur (Brazil, Argentina, Paraguay and Uruguay) – signed in November 2016 – provides improved access for certain product lines, South African exporters have made little to no in-roads.

He believes that few people are putting real effort into trying to sell their goods into South America, and are instead

waiting for someone to opportunistically pick up the phone.

“If you look at chicken, the Brazilians have put proper effort into getting their chicken into the world market, including ours. The same can’t be said of South African goods into that region.”

According to the Department of Trade and Industry report ‘Increasing Trade with Latin America: Preferences, Challenges and Remedies’, exports to Latin American countries have

stagnated at between one and two percent of South Africa’s

total export volumes.Brazil, Argentina, Chile and

Mexico account for 77% of

this country’s South American exports, which are dominated by minerals and base metals. It says Latin American countries are major commodity exporters and generally compete with us in world markets. – Tristan Wiggill

Exporters urged to explore S America’s untapped potential

Even though there are good wines produced in South America, there is probably a space on the shelves of many a Latin American country for us to increase our wine exports.– Donald MacKay

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Brazilian interest in using Walvis Bay as a gateway to trade with the Southern

African Development Community (SADC) has grown since the Walvis Bay Corridor Group (WBCG) has opened an office in the South American country.

A recent visit by three Brazilian companies is to be followed by another business delegation in November this year, according to Ricardo Latkani, WBCG business development representative in Sao Paulo.

“As Walvis Bay provides the shortest link to connect the massive Brazilian economy to the Southern African market, it is logical that economic partnerships are on the horizon,” he said

after meetings between representatives of three Brazilian companies and their Namibian counterparts.

“With Brazil being the closest and most industrialised international market by sea to the SADC region, it offers a lot of opportunities for our logistics hub initiative,” adds WBCG CEO, Johny Smith.

Brazil’s main container port Santos is seven days' sailing from Walvis Bay.

The WBCG is working with shipping companies and importers and exporters to establish regular direct services.

“As we pick up traction on the Namibian logistics hub concept, international interest in this gateway into

southern Africa continues to build,” says Smith.

The Brazilian companies are looking at both exports and imports.

Zaltana Pescados is interested in importing Namibian hake to Brazil and exporting fresh water fish to SADC, according to Latkani.

“The second Brazilian company, Enaex Britanite, is looking into possibilities to set up warehousing for mining detonators and explosives and investing in infrastructure projects. The third company, Teccoil, expressed an interest in establishing assembly lines for alternators and engine starter motors respectively,” says Smith.

These opportunities are aligned with a regional

industrial value chain initiative that WBCG is working on through

a Namibian Spatial Development Initiative (SDI), according to Smith.

Brazilians on a fact-finding mission to Walvis Bay: Bruno Leite – CEO of Zaltana Pescados, Ricardo Latkani – WBCG business development representative in Brazil, Uilson Oliveira – owner of Teccoil, and Carlos Duque – general director of Enaex Britanite.

Brazilian interest in using Walvis Bay as SADC gateway grows

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Global Presence

South Africa stands at a crossroads in its trade relationship with the United States since the new Trump administration is showing a strong preference for bilateral trade deals that favour (or at least are not ‘unfair to’) American companies, says Tigers managing director Paul Lawrence.

“In its current form the African Growth and Opportunity Act (Agoa) is viewed in the US as an aid programme as opposed to a trade programme and is not facilitating two way trade,” says Lawrence.

The question is whether South Africa should continue to rely mainly on its GSP and

Agoa preferences (although Agoa is scheduled to expire in 2025) – or whether it should be exploring the prospects of negotiating a Free Trade Agreement (FTA) with the

United States. “This would bring greater balance to the relationship and ensure that South Africa sets its sights more on trade competitiveness than trade concessions,” says Lawrence.

“But these are political issues

that we cannot answer – we can only speculate.”

Lawrence is upbeat about growth on the route. “For Tigers this is one of our stronger regions with good office coverage and the benefit of operating on one global platform,” he says.

“We are looking at growing Tiger Fresh, Tigers’ forwarding perishables division, for the export of South African wines in particular to the US.”

E-Commerce solutions are at the heart of Tigers’ value proposition, according to Lawrence. “We operate 15 omni-channel fulfilment centres in the USA and Canada – and as an enterprise solutions company our solutions are scalable and replicable.

“Average annual growth of the e-Commerce product for Tigers in North America has exceeded 70% per year,” he adds.

The company sees considerable opportunity and potential in the South African market – and opportunities to fast forward South Africa’s e-Commerce development based on expertise gained in other markets is already a reality, says Lawrence.

Wine exports to the US high on the agenda

We operate 15 omni-channel fulfilment centres in the USA and Canada.–Paul Lawrence“

A strong partnership in the United States with non-vessel operating common carrier (NVOCC) Shipco Transport has helped neutral consolidation company, CFR Freight, to grow its inbound products out of the US into South Africa.

“We have a great relationship with Shipco and this has probably been the biggest factor in growing the route. It helps to have a partner who will work with you to provide a good solution at a competitive price,” said airfreight general manager for CFR, Stephen Bishop.

He added that the increased demand out of the US had seen the company recently

handling a 67-tonne import consignment. “Our export lane has also seen healthy numbers which are up significantly over the last quarter,” said Bishop.

Managing director of CFR Freight, Martin Keck, said North America

had always been and would continue to be an important trading partner for South Africa, offering numerous

opportunities for both sea and air consolidations.

He pointed out that while South America had never been a very strong trading partner to SA, CFR Freight’s services from Argentina and Brazil were “well-established” and that the company did see some moderate growth opportunities there as well.

Consolidator records steady growth from US

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Congestion at the Port of Durban and the subsequent knock-on effect on other ports remains a concern despite Durban Container Terminal’s (DCT) adoption of a multi-pronged approach to alleviate the situation.

While shippers around the country are reeling from the effects of the congestion and the subsequent delays and increased costs, Cape Town shippers are still finding vessels being rerouted or bypassing the port altogether as shipping lines attempt to make up time lost waiting in Durban.

With the lack of equipment both land and waterside being blamed for the fiasco, Transnet Port Terminals has told stakeholders

that a maintenance team has been working in overdrive to ensure there is increased availability of equipment in Durban. But industry says the situation remains dire.

According to Terry Gale, chairman of the Exporters’ Club Western Cape, the impact of interventions has yet to be felt.

“The fact is that Durban affects the

entire country’s port operations,”

he said. “And the situation is definitely

not improving as yet.”

Mike Walwyn,

chairman of the Cape’s Port Liaison

Forum (PLF), agreed saying Durban remained under severe pressure.

“Vessels are waiting outside, queues of trucks are waiting to enter the terminal, and vessels are now bypassing Durban in an attempt to maintain schedule integrity,” he said. “We are hearing of vessels

being delayed by up to five days in Durban at present. What is interesting and concerning is that in Dakar they are experiencing five-day delays and as a result MSC has just announced a $250/TEU congestion surcharge there.”

He said there were questions over how long it would take before something like that happened in Durban.

The last time shipping lines introduced a surcharge in Durban it was withdrawn after a huge local outcry.

“Perhaps we won’t always be so lucky!” said Walwyn.

A shipping line source agreed, saying the entire situation in Durban at present reminded him of the nineties when similar circumstances had arisen. Repeated requests were made to the authorities to

rectify a drastic situation and purchase more equipment. “Basically that fell on deaf ears and in desperation lines sought compensation through the compilation of a schedule of expenses incurred waiting

at anchorage – as is the case now for 5 to 6 days at a time – but this was f latly rejected by the authorities resulting in a penalty being prescribed. The same as now in order

to recoup some of their losses. I would say the wheel has once again turned 360 degrees.”

He said the multi-pronged approach to alleviate congestion was by all accounts too little, too late.

“This is an uphill battle that looks likely to worsen as we near Christmas and more and more vessels arrive.”

Industry fears congestion surcharge as delays persist

We are hearing of vessels being delayed by up to five days in Durban at present.– Mike Walwyn

“

With R1.5 billion in investment secured to date, the Durban-based logistics and manufacturing hub, Dube TradePort Special Economic Zone (SEZ), has launched a one-stop shop (OSS) facility to assist investors.

CEO of DubeTradePort, Hamish Erskine, said the OSS – which is expected to be operational within this month – would serve as a single point of contact for investors.

Assistance will be provided with, amongst others, the investor application processes; municipal building plan approval processes; SEZ tax incentive application processes, including dti applicable incentives; Customs Controlled Area (CCA) application processes; work permit and other related migration processes; and investor after-care services.

Erskine said Dube TradeZone 1 was now fully operational and fully let, bringing the next phase, Dube TradeZone 2, on stream. “This will certainly open up further attractive investment opportunities within the precinct,” he said.

Dube launches one-stop shop

FRIDAY October 6 2017 | 11

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ABJ - AbidjanABU - Abu DhabiANT - Antwerp, BelgiumASI - AsiaBAR - BarcelonaBRH - B’HavenCON - ConakryDAK - Dakar DAR - Dar Es SalaamDBN - Durban DES - Dar es SalaamDJI - Djibouti DOH - Doha, QatarELS - East London, SAEU - EuropeGUN - Gunsan, KoreaHAR - Le Harve, France HUA - Huangpu, ChinaIMM - ImminghamJEB - Jebel AliJED - Jeddah JPN - Japan

KLG - Keelung 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 MUM - Mumbai NAG - Nagoya NAM - NamibePDG - Pointe des GaletsPE - Port Elizabeth, SA PKG - Port Kelang POI - Pointe Noire, CongoPOR - Portugal

PYG - PyungtaekPYU - Pyaungtaek, KoreaQNG - QingdaoROT - Rotterdam SAL - Salvadore, BrazilSAN - SantosSHA - 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 EUASIAN EMPIRE 160 sld sld sld 08/10 19/10 23/10 25/10 31/10 14/11ASIAN CAPTAIN 160 03/10 15/10 21/10 02/11 13/11 17/11 18/11 24/11 08/12

EUKOR - ASIA / SOUTH AMERICA / EUROPE

VESSEL VOY ASI MOM DAR DBN LUA TEA ABJ DAK CON BRH ANTASIAN TRUST 150 sld sld sld 06/10 - 16/10 17/10 23/10 20/10 03/11 06/11GRAND QUEST 096 14/09 20/10 22/10 27/10 RETURN TO ASIAMORNING CELLO 097 23/09 23/10 25/10 30/10 07/11 11/11 13/11 17/11 - 25/11 TBA

EUKOR - ASIA / AFRICA

EUKOR - SA / EUROPE / MIDDLE EASTVESSEL VOY DBN BRH ANT SOU DJI KLG SHA XIN PYGASIAN TRUST 150 06/10 03/11 06/11 08/11 21/11 08/12 09/12 12/12 14/12MORNING CELLO 097 30/10 25/11 - - - - - - -

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Expert advice

Ten global food companies have teamed up with IBM to use blockchain technology in order to reduce losses and to improve food safety.

One in 10 people around the world suffer from food poisoning every year – and 420 000 of them die, according to the World Health Organisation.

The UN Food and Agriculture Organisation (FAO) estimates that up to one third of all food (or 1.3 billion tons) is spoiled or squandered before it is consumed by people.

Put in monetary terms, food losses and waste amount to roughly US$680 billion in industrialised countries and US$310 billion in developing countries.

The companies that are collaborating in developing a blockchain logistics network are

Dole, Driscoll’s, Golden State Foods, Kroger, McCormick and Company, McLane Company, Nestlé, Tyson Foods, Unilever and Walmart.

Walmart has been trialling the use of blockchain to monitor pork from China and mangoes from the United States since the beginning of the year.

“Blockchain provides a permanent record of transactions which are then

grouped in blocks that cannot be altered,” says Shanker Ramamurthy, general manager of strategy and market development at IBM Global Business Services.

“When applied to the food supply chain, digital product information such as farm origination details, batch numbers, factory and processing data, expiration dates, storage temperatures and shipping detail are digitally connected to food items and the information is entered into the blockchain along every step of the process.

“The information captured in each transaction is agreed upon by all members of the business network. Once there is a consensus, it becomes a permanent record that can’t be altered.

“Each piece of information provides critical data that could potentially reveal food safety issues with the product.

“The record created by the blockchain can also help retailers better manage the shelf-life of products in individual stores, and further strengthen safeguards related to food authenticity,” he says.

Blockchain technology may also help identify logistics bottlenecks in developing regions such as Africa.

According to the FAO, 40% of losses in developing countries occur at post-harvest and processing stages, while in industrialised countries more than 40% of losses occur at the retail and consumer levels.

A recent IBM Institute for Business Value (IBV) study on blockchain in the supply chain found that the digital tracking of the provenance and movement of food throughout the entire supply chain helped improve quality and safety levels.

Ready-to-eat foods pose some of the biggest challenges from a logistics

perspective.Once processed

there may be a number of transporters and warehouses involved before the product is placed on the shelf of a supermarket.

“That’s not only expensive, but maintaining the quality standards set by regulators to keep perishable products safe is also a challenge, particularly when the product contains frozen meat, vegetables or milk products,” says Bridget van Kralingen, IBM senior vice president, global industry platforms and blockchain.– Ed Richardson

Putting food logistics chains on the block

LAST WEEK’S TOP STORIES

With heads rolling almost daily amid new state capture scandals in state-owned entities (SOEs) and in the private sector, analysts believe this will prompt other corporates to focus more keenly on corporate governance. But this is contingent on greater protection of public and private sector whistleblowers.

The inaugural Ethical

Practices Survey – conducted by the Anti-Intimidation and Ethical Practices Forum (AEPF) and launched by Corruption Watch late last month – highlighted that professionals working in the auditing and accounting fields in South Africa were generally open to reporting unethical behaviour within their fields.

“But there are risks involved

in exposing corruption or unethical behaviour, and if companies and professional bodies do not curb incidents of intimidation, the situation will not improve,” said executive director of Corruption Watch, David Lewis

The survey found that private professionals sector were more likely to report unethical behaviour anonymously.

‘Whistleblowers need more protection’

How much do your drivers keep on hand to fast-track goods at borders?Over the past 50 years Africa has lost out on more than $1 trillion in revenue due to corruption, according to the Institute for Security Studies (ISS).

Transnet speaks out on BLSA suspensionTransnet has labelled as “inaccurate and misleading” the statement by Business Leadership South Africa (BLSA) that it has suspended Transnet’s membership.

DCT reveals ‘multi-pronged approach’The Durban Container Terminal (DCT) has unveiled its “multi-pronged approach” to alleviate congestion issues at the terminal.

TFR introduces bi-directional trains In an effort to help alleviate congestion at the Durban Container Terminal (DCT), Transnet Freight Rail (TFR) has introduced several interventions.

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BUNKER WATCH (FUEL PRICES)

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Zim transit regulations

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Local is lekker... ... Get ShipShape!

FTW involved a tautliner truck – which could easily have been sealed – where the driver was told that his vehicle needed to be escorted. He was informed that only five trucks per day could be escorted to the Chirundu border post and he was number 48 on the list – which meant a delay of five days.

A report on the Fesarta website highlighted that all Zimbabwean borders had been hit by chaos and delays, noting that that two weeks ago, at the Forbes-Machipanda border post between Zimbabwe and Mozambique, there had been an up to 10-kilometres-long queue of vehicles waiting up to 72 hours to cross into Zimbabwe – often including fuel tankers and fertiliser trucks.

This is a dangerous cocktail of chemicals

which could cause a serious accident similar to the explosion at the Kasumbalesa border post three years ago in which five drivers burnt to death after drivers had made a fire to cook a meal. A leak from a petrol tanker reached the fire and caused a massive explosion affecting over 100 trucks.

Mike Fitzmaurice, CEO of Fesarta, said the congestion issues had claimed the first casualty about three weeks ago when a child playing under a fuel tanker had been run over by a truck when

the 10-kilometre queue had suddenly started moving.

He said he hoped that the “regrettable” tragedy would highlight the dangers of staging large numbers of vehicles in uncontrolled areas with no security or facilities for extended periods of time.

Zimra could not be reached for comment.

The costs of the seals and penalties add to the cost of crossing the Zimbabwean borders.– Mike Fitzmaurice

“Countless studies from across the world show how corruption has the potential to restrict trade.– Mavuso Msimang

“

From page 1

Adele Mackenzie

Corruption occurs most frequently with the South African Police Service (SAPS), traffic departments and licensing centres, according the 2017 Analysis of Corruption Trends (ACT) report released recently by anti-corruption watchdog, Corruption Watch.

This has prompted Corruption Watch and the Institute for Security Studies (ISS) to launch a campaign focusing on the “crisis of leadership” within the criminal justice system, said Corruption Watch executive director, David Lewis.

He said the two organisations were currently running a survey to determine what skills and attributes were needed from leaders of the criminal justice system.

Lewis pointed out that bribery remained the most prevalent form of abuse of power but that embezzlement of funds, irregularities in procurement and irregularities in employment had also been highlighted as the most common types of corruption

Corruption Watch chairperson, Mavuso Msimang, said that one of the key drivers of corruption within the public sector was incompetence by people who occupied key positions but did not have a full understanding of their jobs.

“Countless studies from across the world show how corruption has the potential to restrict trade, interrupt investment, reduce economic growth and distort the facts and figures associated with government expenditure,” he

commented.Msimang

added that where there was rampant public sector corruption investors could not be sure that their contracts would be honoured. He pointed to South

Africa losing its top African investment destination status to Egypt – highlighted in last week’s Rand Merchant Bank report, ‘Where to invest in Africa’ – as being “testament to the negative impact institutionalised corruption can have on a country”.

Individuals involved in state capture should be put in prison, asserted

Msimang, to serve as a strong deterrent for future corruption and to ensure they don’t pay their fines with money they have stolen.

Study shows police, traffic officers the most corrupt

Resistance to

corruption grows

According to Corruption Watch, there has been a 9.5% increase in corruption complaints for the first six months of 2017, over the same period last year, with 37.3% of the total 2 744 complaints originating in Gauteng.

Corruption Watch executive director David Lewis said that while it was clear that corruption remained “alarmingly high”, the determination of people to expose corruption highlighted the important role played by whistleblowers in holding corrupt companies and individuals to account.

FRDA 6 October 2017 O. 2266 New Zim transit regulations...

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