FTW 22 Januray 2010

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Freight & Trading Weekly

Transcript of FTW 22 Januray 2010

  • The Freight Communitys Weekly Newspaper for Import / Export decision makers on subscriptionFRIDAY 22 January 2010 NO. 1894


    By Alan Peat

    The need for shipping lines to take preventative measures against pirate attacks is now costing shippers extra on their freight charges.

    And several shipping lines are taking action.

    As part of its move to protect against pirate attacks in the north-western Indian Ocean, MSC has imposed a piracy surcharge on cargoes bound from the Indian sub-continent to East and South Africa.

    While the early official notification from MSC head office indicated the surcharge being levied on the southbound sailings, Glen Delve, Durban-based marketing manager for the line, is certain that it will also apply to outbound cargoes from SA.

    The US$95/TEU surcharge, he told FTW, is to help cover the cost of diverting the ships to a course further out to sea, primarily in the piracy-prone area off the coast of Somalia and the eastern entrance

    to the Gulf.We are now steaming

    outside the recognised piracy hot spots, Delve said. And the diversion of these vessels obviously costs us more in bunker fuel costs and additional fast-steaming time to maintain our scheduled sailings.

    The surcharge, he added, will help to compensate for this deviation cost.

    Similar information has been released to FTW from the AP Mller Group which includes the two shipping lines Maersk and Safmarine.

    We have been constantly monitoring the situation in the Gulf of Aden and the area off the Somali coast, said Maersk SA MD, David Williams.

    Preventing piracy attacks is at the forefront of our considerations, to ensure the safety and security of our crew, vessels and our customers cargo.

    And, with the increased piracy activity in the area, his line has been forced to further increase the safety

    measures taken by the vessels sailing in this region.

    According to Williams these measures included: Several smaller vessels

    having been replaced by larger and faster vessels to reduce the risk of successful boardings and hijackings; Sailing distance having been increased again and

    vessels now sailing even further away from the Somalia coast line; Additional security precautions having been


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    Piracy scourge hits shippers pocketsSurcharges introduced to cover cost of diverting ships

    South-easter batters Cape Town terminal schedule

    To page 20

    Quieter times in Cape Town harbour A howling south-easter thwarted business for almost ten hours last week, resulting in a delay of 105 to one of the arriving vessels. See full story on page 17.


    Editor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterAdvertising Carmel Levinrad (Manager)

    Yolande Langenhoven Jodi Haigh

    Divisional Head Anton MarshManaging Editor David Marsh

    CorrespondentsDurban Terry Hutson

    Tel: (031) 466 1683Cape Town Ray Smuts

    Tel: (021) 434 1636 Carrie Curzon Tel: 072 674 9410Port Elizabeth Ed Richardson

    Tel: (041) 582 3750Swaziland James Hall

    [email protected]

    Advertising Co-ordinators Tracie Barnett, Paula SnellLayout & design Dirk VoorneveldCirculation [email protected] by JUKA Printing (Pty) Ltd

    Annual subscriptions RSA R465.00 (full price)

    R800.00 (Africa neighbouring)R1065.00 (foreign).

    Publisher: NOW MEDIAPhone + 27 11 327 4062

    Fax + 27 11 327 4094E-mail [email protected]

    Web www.cargoinfo.co.za

    Now Media Centre 32 Fricker Road, Illovo Boulevard,

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    2 | FRIDAY January 22 2010

    Airport Charges 01 April 2010In a December 2009 Government Gazette the Airports Company of South Africa Limited (Acsa) announced the airport charges that it will levy from 01 April 2010.

    Air Traffic Charges 01 April 2010In a December 2009 Government Gazette the Air Traffic and Navigation Services Company Limited announced the air traffic service charges that it will levy from 01 April 2010.

    Trade Statistics November 2009On 30 December 2009 the South African Revenue Service (Sars) published November 2009 trade statistics detailing a trade deficit (imports exceeding exports) of R2.5 billion.

    This brought the trade

    deficit for the year, 01 January 2009 to 30 November 2009, to R29.18bn compared to R62.89bn for the same period in 2008.

    With only the December 2009 trade statistics to be published, there is one certainty that the trade deficit will be lower than that of 2008, but there will be a trade deficit nonetheless.

    Rule Amendments SADC Origin ProtocolIn a Government Gazette notice dated 31 December 2009, Sars announced an amendment to Rules 49B to the Customs and Excise Act which relate to the Southern African Development Community (SADC).

    Rule 49B relates to the Treaty of the South African Development Community and Protocols Concluded under Article 22 thereof. The amendments relate

    to the issue of origin.

    Draft Customs Control & Customs Duty Bill 35 DaysToday, 22 January 2010, there are only 35 days left for you to comment on the Draft Customs Control Bill, and the Draft Customs Duty Bill, which were first published on 30 October 2009.

    You will recall that the two draft Bills form the legislative platform for changes to people, policy, processes and technology which will be delivered under the Customs Modernisation programme.

    Action Required Your ReminderAt the request of readers we will remind you of those issues on which comment is due. For ease of reference the issue in which the original notice was published is provided in brackets. Tariff applications relating to (i) the proposed reduction in the rate of customs duty

    on self-copy paper; (ii) the proposed increase in the rate of customs duty on glycerol; and (iii) the proposed increase in the dollar-based reference price for wheat, in respect of which comment is due by 29 January 2010 (Duty Calls 15 January 2010). The amendment of the Rules to the Customs and Excise Act relating to form DA90. Form DA90 is titled Claim in respect of Excise Duty and Fuel Levy on Motor Fuel used by Diplomatic and Other Foreign Representatives in terms of Items 602.01, 602.02 and 640.1 of Schedule No. 6 to the Customs and Excise Act, No.91 of 1964, on which comment is due by 29 January 2010. (Duty Calls 15 January 2010).

    Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.

    A weekLY summary of the main changes to the South African tariff dispensation and amendments to customs and excise legislation. email [email protected]


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  • FRIDAY January 22 2010 | 3

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    Customs puts single bond on the agendaLarger customers stand to benefit more than smaller players

    By Joy Orlek

    In the interests of streamlining Customs procedures in South Africa, theres a big initiative from Customs to introduce a single bond rather than the variety of bonds required for different purposes.

    Currently, if a customer wants to move goods within each port, they need to open up an account at each port and have a deferment bond.

    The idea now is to introduce a system that would cut down the need for a different guarantee

    in each port and each customer would now hold one national bond.

    This single bond would encompass warehouse guarantees, road bonds and others.

    And while this would be advantageous for Customs, practically speaking there are different views.

    The feeling is that this may benefit larger players while smaller players would come unstuck because it would affect their cash flow capability.

    At the moment they have different accounts at different ports, which means they have different

    payment dates and can therefore use the money as it comes in to pay other accounts. With only one national bond it could affect their cash flow, says Lombard Insurances Dean Burscough.

    If they miss a payment date there are strict penalties.

    Customs has been talking about the proposal for a few years. Practi