FREIGHT & TRADING WEEKLY
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FRIDAY 2 April 2010 NO. 1904
The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription
Industry condemns Chinese ‘kickbacks’ The answer is to insist on buying ex-works or FOB BY Joy Orlek Despite industry-wide condemnation, the China import service fee (CISF) appears to be here to stay. Particularly prevalent on the China and India routes, it’s beginning to spread globally and involves a kickback paid
to the overseas exporter by his appointed forwarder or groupage operator. Effectively, for every cubic metre imported, NVOCCs are paying kickbacks of up to US$50 per freight tonne back to the exporter – and if they don’t comply they simply lose the business.
Managing director of independent consolidator CFR Freight, Martin Keck, was the first to publicly condemn it several years ago. At the time he called for intervention to prevent further escalation. Although perhaps not “illegal”, an industry source said it was certainly unethical
and appeared to go against the terms of sale. She cited an instance where a CIP Durban contract with freight and insurance “prepaid” reflected an amount equal to the ocean freight as a CSIF fee in US dollars on the local degroup agent’s invoice. This had to be paid before release
could be effected. “Furthermore, as is becoming more and more common, the cargo which could have been sent in a 20 ft GP FCL was shipped in a 40 ft groupage box with substantially higher SA land side charges,” she said. To page 8
Centenary celebrations! By Liesl Venter
Celebrating a milestone … Anthony Dawe, acting managing director, Safcor Panalpina and CEO of Bidfreight; Lukas Fischer, managing director, Sub Sahara, Panalpina; Monika Ribar, president and CEO of Panalpina; Brian Joffe, CE of The Bidvest Group and Svetlana Glavic, Panalpina delegate.
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In a major milestone for logistics major Safcor Panalpina, the company has celebrated its centenary year at a series of functions for customers, suppliers and staff in Johannesburg, Durban, Cape Town and Port Elizabeth. In 1910 innovative businessman Fred Goldman spotted an opportunity delivering cargo in and around Johannesburg. He sealed his deals with a simple handshake before sending his mule carts to make deliveries timeously.
Today, the fledgling company established by Goldman still delivers cargo timeously – but they do it around the world on a scale that would have left him gaping. “This is an incredible achievement for any company but more so for one operating in the tough environment of freight,” said Brian Joffe, chief executive of The Bidvest Group, which bought Safcor Panalpina some 18 years ago. Today the company has an international network of over 500 offices in 80 countries and partner companies in a further 80.