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FREIGHT & TRADING WEEKLY
Import and Export Consolidations by Sea and Air
n United Kingdom TRANSPORT IS OUR BUSINESS
Cpt: Tel: (021) 380 5860 Fax: (021) 386 2498 Jnb: Tel: (011) 929 4900 Fax: (011) 397 4221 e-Mail: capetown@hartrodt.co.za e-Mail: johannesburg@hartrodt.co.za Plz: Tel: (041) 581 0696 Fax: (041) 581 0715 Dur: Tel: (031) 584 6381 Fax: (031) 584 6380 e-Mail: portelizabeth@hartrodt.co.za e-Mail: durban@hartrodt.co.za www.hartrodt.com FTW0398
d States
FRIDAY 4 September 2009 NO. 1878
The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription
Shippers slate container damage surcharge
UK
Move to outlaw all surcharges By Alan Peat A major shipping line on the SA trade has been condemned by the Cape’s shipper/forwarder fraternity for planning to introduce a contentious container damage surcharge from October 1. The line felt that such a surcharge was justified. “In the current global economy,” it said in a notice to customers, “the high cost and volume of container repairs have forced us to take remedial action against these rising costs. “In light of this, we will be
introducing a ‘container damage surcharge’ for both import and export containers to be invoiced to the consignee and the shipper respectively, at the time of import container release and export bill release.” It has decided to levy the surcharge at the rate of US$30 per TEU for dry containers; US$60 for reefer (refrigerated) containers; and US$45 for special equipment. According to the line, the surcharge will cover any damages to its containers – up to a maximum of US$50 000 – while the container is under the
client's responsibility. “Another iniquitous surcharge – purely a way of raising extra boodle,” said a prominent voice in the Cape seafreight brigade. His complaints were those generally agreed to by the entire international shippers’ community. That surcharges are purely add-on income, and lines should draw up an all-inclusive – and, for users, predictable – freight rate. Also that – in the case of surcharges such as this, or the equally contentious “dirty container surcharge” – a line To page 12
‘The allegedly guilty should be individually invoiced – with adequate proof of their guilt supplied.’
Further blow to clothing and textile exporters A support measure for Southern Africa’s embattled textile and clothing export industries – selling into a global market utterly dominated by the cut-price giants of the South East and East Asia – looks about set to fade away. This, according to commentators, could be the final financial straw that could break a few more backs in the apparel trades.
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Lawyer Sean Woolfrey, a researcher for the Trade Law Centre of Southern Africa (tralac), talked to FTW on the issue. He said when officials of the Southern African Customs Union (Sacu) met to determine the fate of the region’s textiles and clothing industrial development programme – commonly referred to as the duty credit certificate scheme (DCCS) – it was widely
believed that the outcome of this meeting would be the scrapping of the DCCS. “This, in turn, would represent a further blow to clothing and textiles exporters in the region,” he added, “many of whom are already struggling to cope with intense competition from Asian producers.” To date, no clear indication has been given of the outcome of this meeting.
According to Brian Brink, executive director of the Textile Federation, the most recent announcement was that the DCCS would be extended for another year – until March 31, 2010. But, while Brink was told at the meeting with the department of trade and industry (dti) that the DCCS was “in for it”, and that this was its last year, he was wary about accepting this as fact.
“The DCCS has been stopgo since 1994,” he said, “with each year the department grudgingly extending the scheme for one more year.” But it will finally have to be phased-out, as it falls foul of the World Trade Organisation (WTO) rulings on export subsidies, and complaint has been made. “This,” said Brink, “because it effectively To page 12