October 2005 Edition

 

The hand signifies purpose and strength, it expresses creativity and innovation, allowing humankind to overcome any challenge.  Your total shipping and freight handling solutions are in our hands.   - Jacob Bronowski 

Welcome

Dear Business Partner

We hope you find our October 2005 newsletter to be insightful and helpful to your business as our valued customer. 

Also, please let us know if there is any way in which we can improve this newsletter in the future for you.  You can use contact form at the bottom of this newsletter to send us your feedback.



BAF Increase effective 1 October 2005

We would like to remind you that, due to the ever-increasing price of crude oil, the shipping lines have had no choice but to implement an increase in the bunker adjustment factor (BAF) surcharge for all imports/exports to/from the Far East with effect from 1 October 2005 (bill of lading issue date):

US$ 193 per 20' container

US$ 386 per 40' and 40' HC container

Please do not hesitate contact us if you have any queries or comments concerning the above.


New Orleans traffic redirected to Houston

The recent Hurricane Katrina has devastated the Mississippi area of the Gulf of Mexico - leaving thousands dead, a conservative estimate of US$25-billion in damage, the port of New Orleans shut down with the city still flooded at the end of the week, and the transport industry in the region thrown into chaos.

News from the US Embassy in Pretoria was limited, with much of the communication network in the Gulf area out of action. "If you've been watching CNN, you know as much as we do," said a spokeswoman for the Embassy.

However, FTW has been able to gather more solid information from Gulf Africa Line (GAL), the MACS operation which is believed to be the only direct service between SA and the Mexican Gulf.

Although still patchy, on-going news was released to us by GAL's Markus Popken.

In the middle of last week all Popken could tell FTW was that the GAL New Orleans operations office had been closed until further notice, and the staff relocated to the line's office in Houstin, Texas - now acting as an alternative for traffic originally destined for New Orleans.

Assessing impact

"We will spend the next two days assessing Katrina's impact to navigation at the Mississippi River and the GAL's liner berth at Globalplex," Popken said on Wednesday.

"Regretfully at this time it is believed the US Coast Guard service is heavily involved in search and rescue operations and the US Army Corps of Engineers is solely focused on fixing the levee breaches which are drowning New Orleans."

Even by Friday, firm news about port damage was still sparse.

"We have been unable to contact anyone from Associated Stevedores in New Orleans," said the short message from the GAL representative in the US.

"I was told all their cranes had survived - but were afloat.  I know that many of their operations personnel are from St. Bernard and Chalmette - so they have all lost their homes due to flooding.  I assume Associated will have to provide temporary housing for their workers.  If the New Orleans region is to get back on its feet this is going to be a major issue - where to house the work force?"

It was also understood that coastal cargo at New Orleans City Dock was down for 3-4 weeks - and the port's labour force was looking for work in the Houston area.

River barging was also an area of great concern - with damage assessments by the barge fleets still not completed.

However, information received by FTW overnight last Thursday revealed that there were reports from the barge operators that the river north of New Orleans, above Mile 98, appeared to be navigable without obstructions.

Barges sunk

But there was also unconfirmed reports that in the vicinity of Mile 55, barges had sunk - and, if there are barges on the bottom, it may be sometime before their impact on the deep draft channel is known.

There were also reports of three ships aground; one in Algiers and two at AMA Anchorage, though these vessels are not impacting the channel.

"If the reports are true," FTW was told, "it appeared that the channel might be close to being opened to some of the shallower draft vessels."

It was also confirmed that the Coast Guard had conducted a flyover of the channel and viewed some obstructions - but with no details as to where.

And, according to the Coast Guard, it will prioritise vessel movements based on facility availability and other factors.

"Once vessel movements resume there will be one way traffic and daylight-only restrictions in place," they told FTW.

At the same time, it was noted that some terminals low on the river were gone - with the IMTT large coal / ferros terminal being named as one.

What was certain was that numerous steel vessels had diverted to Houston, this also being the alternative port for discharge of New Orleans-bound general cargo, and Mobile being named (but not confirmed) as the port of bulk cargoes.

Air transport was also badly disrupted.  "Because parts of the Gulf Coast are likely to remain badly damaged for an extended period, there will be an ongoing loss of revenues to airlines serving that region," Standard & Poor's said on Tuesday.

Source: Alan Peat, FTW


Fuel price breakdown in a nutshell

The rising fuel price has raised many voices of concern over how it is calculated.

Wayne Bateman of the SA Chamber of Business has provided the following breakdown as per the Department of Minerals and Energy:

  • The basic fuel price is R 3,23 a litre of the total R 5,91 (this is the amount received by oil refiners and is calculated by the state Central Energy Fund)

  • The road accident fund levy is 34,4c a litre

  • The retail margin is about 40c a litre

  • The wholesale margin is about 40c per litre

  • The zone differentials are about 14c a litre

  • The service costs recovery is 7c a litre

  • Customs and Excise take 4c a litre

  • The state levy is 10c a litre


Customs won't enforce proof of delivery clause

There's been further confirmation that proof of final delivery of exports for VAT purposes is "on hold".  This follows a reader query regarding a recent FTW article quoting the SA Association of Freight Forwarders (SAAFF) on the subject.

Although a demand for proof of delivery is still part of the legislative content of the recently-promulgated VAT practice note 30, it is not being enforced until this legislation can be appropriately changed, according to Brian Olwage, owner of Airground Freight Management and SAAFF director for customs.

There were loud wails from the freight forwarding and export industries when the new rules were announced - with the sheer impossibility of getting proof of delivery (particularly from African countries) being explained to customs.

"They have agreed it is impossible," said Olwage.  "But it is in the legislation, and will remain there until the practice note can be legally changed."

However, he added, customs have agreed that - until this correction procedures is complete - the proof of delivery clause will not be enforced.

"This document is being rewritten at the moment," said Olwage, "after a workshop between SAAFF and customs.

"We have accepted the draft, with certain recommended changes, and expect to see the final rewrite in mid-September."

Source: Alan Peat, FTW



Customs begins accreditation blitz in KZN

More rigorous nationwide screening process begins

The SA Revenue Service (SARS) is currently conducting an auditing blitz of all its current accredited clients in Pietermaritzburg in Kwa-Zulu Natal - the start of a nationwide review of all those companies already accredited, according to trade and customs consultants Deloitte.

This, Deloitte told FTW, follows various communications from SARS over the last few months that the accreditation initiative is under review and the process will be revamped.

"Companies need to be aware that they could potentially lose their accredited status should SARS discover that they have misrepresented disclosures on their initial application," said a Durban-based spokesperson for the company.

"In addition to the potential penal provisions it will be difficult for these companies to regain their accredited status."

The warning at this stage - now that the newly revived audit initiative ha started - is that accredited companies need to have a re-look at their initial applications to ensure that there are no potential problems lurking there which could create exposure.

The next step by SARS, the spokesperson added, is to be a self-assessment document - which is likely to be available very soon.

The draft was issued only to those who attended the recent stakeholders' meeting.  Responses to this first document are currently being analysed by customs after which the final document will be released.

"There is now a lot more focus on compliance and auditing," said the Deloitte source, "and - looking forward - all new applications for accreditation will undergo a more rigorous screening process by SARS."

Source: Alan Peat, FTW
 


SA gets high marks in ISPS audit

The costs of the SA port network complying with the International Ships and Port Security (ISPS) code have all been absorbed by the National Ports Authority (NPA), according to Allister Donald, GM of Grindrod Ships Agency and chairman of Durban's port liaison committee (DPLC).

"It must have been a very costly exercise," he said, "but it has not been passed on to port users in any way."

SA ports overall received high marks from the International Maritime Organisation (IMO) audit team that visited this country to inspect the systems brought into play to comply with the demands of ISPS.

In Durban, the whole exercise has been a co-operative effort between the private sector and the port authorities, Donald added.

"Although the NPA were the nominal heads of the exercise under the auspices of the department of transport," he said, "SA Port Operations (SAPO) - with their own terminals to take care of - also had to put their shoulders to the wheel.  And not only the port authorities, but also the shipping lines themselves and their landside shipping line and agency operations, all had roles to play."

The work on ISPS compliance has gone on for well over a year now, but the last part of the port to be completed - the shipyard area - has now been signed off as ready.

Source: Alan Peat, FTW


Quotas won't solve cheap Chinese imports

In the long run, the dispute over imports of low-price Chinese textiles and clothing cannot be solved by subsidies or quotas, according to London's newspaper, the Independent.

The trend is towards globalisation, and industrialised countries must embrace the so-called "knowledge economy" while manufacturing is left to cheap-labour economies, said the report.

"To be competitive, advanced economies must concentrate on style and design, high technology and high quality."

Attempted controls on imports of cheap Chinese textiles and clothing in the European Union (EU) have only pushed up consumer costs, plus put upward pressure on inflation.

Source: Alan Peat, FTW


SA and Portugal sign co-operation agreement

Chambers of commerce and industry in SA and Portugal have signed up a programme of co-operation - valid for the next two years and automatically renewable thereafter.

The Associacao Industrial Portuguesa/Camara de Comercio e Industria (AIP/CCI) and the Johannesburg-based Nafcoc/JCCI have signed an agreement on developing the economic contacts between both countries.

This focuses on trade, investment, training of economic staff, technology transfer, as well as the more comprehensive understanding of both economic systems.

A primary concentration for the two chambers will be Angola and Mozambique - which, said JCCI, are strategic destinations for Portuguese and SA private investment.

"New foreign direct investment (FDI) and technology are crucial for the development of Angola and Mozambique," said the JCCI.

To increase FDI and the conditions for success, the capacities for FDI support need to be centralised, according to the chamber.

As an aid to this, the combined chambers intend to establish a network of selected companies and professionals - essentially from Portugal, SA, Angola and Mozambique- and accessible to small and medium companies.

These contacts, said JCCI, will be made available through an Internet website - with the two chambers responsible for the development of the network.

The network and its website are to be publicised in a conference using video conference capabilities in Lisbon and Johannesburg in the first week of November.

Source: Alan Peat, FTW


Management tips:
personal time management

What is Personal Time Management?

PTM is about controlling the use of your most valuable (and undervalued) resource.

 

The absence of PTM is characterised by last minute rushes to meet dead-lines, meetings which are either double booked or achieve nothing, days which seem somehow to slip unproductively by, crises which loom unexpected from nowhere. This sort of environment leads to inordinate stress and degradation of performance: it must be stopped.

 

Poor PTM is often a symptom of over confidence: techniques, which used to work with small projects and workloads, are simply reused with large ones. But inefficiencies, which were insignificant in the small role, are ludicrous in the large. You cannot drive a motorbike like a bicycle, nor can you manage a supermarket-chain like a market stall. The demands, the problems and the payoffs for increased efficiency are all larger as your responsibility grows; you must learn to apply proper techniques or be bettered by those who do. Possibly, the reason PTM is poorly practiced is that it so seldom forms a measured part of appraisal and performance review; what many fail to foresee, however, is how intimately it is connected to aspects, which do.

 

PTM has many facets. Most managers recognize a few, but few recognize them all. There is the simple concept of keeping a well-ordered diary and the related idea of planned activity. But beyond these, it is a tool for the systematic ordering of your influence on events; it underpins many other managerial skills such as Effective Delegation and Project Planning.

PTM is a set of tools, which allow you to:

Ø        eliminate wastage

Ø        be prepared for meetings

Ø        refuse excessive workloads

Ø        monitor project progress

Ø        allocate resource (time) appropriate to a task's importance

Ø        ensure that long term projects are not neglected

Ø        plan each day efficiently

Ø        plan each week effectively

Ø        do so simply with a little self-discipline

Since PTM is a management process just like any other, it must be planned, monitored and regularly reviewed.

PTM skills are essential for successful people - these are the practical techniques, which have helped the leading people in business, sport and public service reach the pinnacles of their careers.


Health:
how to stop that hacking cough

Has your bout with a cold or the flu left you with a nagging cough? Try soothing your cough with these tips from Lehigh University Health Center in Pennsylvania:

  • Drink plenty of clear fluids.
     

  • Inhale steam. Sit in a steamy bathroom or use a vaporizer.
     

  • Take one teaspoon of honey-lemon mixture as needed.
     

  • Rest with two or more pillows under your head to help control your coughing.

    If after several days, you're still coughing, see your doctor.

Source: http://www.4woman.gov/news/english/527793.htm


 

Export groupage sailings

 

DESTINATION VESSEL
VOY
EST. PACKING
ETD
     
NORTH WEST CONTINENT      
Rotterdam (28) MSC MARTINA

163R

29/09/05

02/10/05

     
Hamburg (25) MSC MARTINA

163R

29/09/05

02/10/05

         
Antwerp (21) MSC MARTINA

163R

29/09/05

02/10/05

         
Via NWC: We can transship to Intra Europe, Central America, South America, USA, Canada, Africa, Mediterranean & The Caribbean.
       
UNITED KINGDOM      
Felixstowe (21) MSC MARTINA

163R

29/09/05

02/10/05

     
FAR EAST      
Singapore (12) BUXLAGOON

015E

23/09/05

27/09/05

  DAINTY RIVER 147E 30/09/05 04/10/05
  CAP COLVILLE 018E 07/10/05 12/10/05
 
Via Singapore: We can transship to Australia / New Zealand, Intra Europe, Central America, South America, USA, Canada, Intra Asia, India, Mediterranean, Middle East & The Caribbean.
     
INDIAN OCEAN ISLANDS      
Port Louis (5) MSC CLAUDIA

0538

21/09/05

24/09/05

  MSC AMSTERDAM

0539

28/09/05

30/09/05

 
Via IOI: We can transship to Longoni, Reunion, Seychelles & Tamatave.
         
AFRICA
   
Tema (14) MOL MONO

0532A

27/09/05 30/09/05
  MOL NIGER 0922A 17/10/05 21/10/05
         
Lagos (10) MOL MONO

0532A

27/09/05 30/09/05
  MOL NIGER 0922A 17/10/05 21/10/05
         
Mombasa (6) MOMBASA STAR 421N 23/09/05 25/09/05
  KOTA MESRA N102 10/10/05 13/10/05
         
Dar Es Salaam (5) ASTOR N099 26/09/05 28/09/05
  KOTA MESRA N102 10/10/05 13/10/05
         
Via Mombasa: We can transship to Uganda.


National holiday list - November 2005

Australia 02 Japan 03, 23
Belgium 01, 11 Malaysia 11, 14, 15
Bangladesh 07, 10,
12-15
Madagascar 01
Brazil 02, 15 Mexico 01, 02, 20
China 01 - 07 Pakistan 09
Canada 11 Panama 03 - 05, 09, 28
Egypt 13 - 16 Philippines 01, 03
Fiji 12 Sri Lanka 26
France 01, 11 Singapore 11, 14
Indonesia 15 - 19 UAE 13 - 15
Italy 01 USA 25

 


Joke of the month

        Q:  What do you call a sheep with no legs?

               A:  A cloud.

 

              Q:  "Doctor!  I have a serious problem; I can never remember what I just said."

    "When did you first notice this problem?"

A:  "What problem?"


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Durban (Head Office):
2nd Floor, Kuehne & Nagel House, 381 Berea Road, Durban, 4001
Tel: 031 202 9108
Fax: 031 202 9160
Email: jacqui@famous.co.za

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Meerzicht Business Park, 1st Floor Meerlust, 33 Kelly Road, Jet Park, 1461
Tel: 011 397 2373
Fax: 011 397 2378
Email:
admin.jhb@famous.co.za

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Tel: 021 421 3970
Fax: 021 421 3972
Email: ctn@famous.co.za

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