Archives For Cargo carrier

CargoX

Hong Kong-based CargoX raised $7 million through an initial coin offering to build its smart contract-based house bill of lading solution. CargoX, has designs on developing so-called smart contracts to transfer house bills of lading onto a blockchain solution it is building. House bills of lading are issues by non-vessel-operating common carriers (NVOs).

The coins, also called tokens, can be used to pay for CargoX’s smart contract solutions, but those interested in the blockchain-backed bill of lading solution can also pay with traditional currencies.

“Our platform will support all the legacy payment options with fiat money, but as we are a startup based on blockchain technologies, we are working on implementing cryptocurrency payment as well,” said CargoX founder Stefan Kukman. “There will be various service levels supported, and there will be additional features and services provided to holders and users of our CXO utility tokens.”

The ICO serves two purposes in this application. It helps CargoX raise funds as opposed to seeking venture capital investment, but the coins can also be used to transact within the solution. So, the sale of the CXO tokens is ancillary to the product offering.

That’s different from another crypto-token liner shipping model that emerged in the second half of 2017 called 300Cubits. That company issued tokens, called TEUs, to underpin a solution that would penalize shippers and carriers for no-show or overbooking behavior.

CargoX, meanwhile, said it wants to be a neutral platform for global trade documentation and is starting with the bill of lading approach. The solution comprises an app, a document exchange protocol, and a governing body, which is currently being established.

“The next step is to demonstrate the viability of our platform with a test shipment,” Kukman said.

That pilot, scheduled for the second quarter of 2018, links a logistics company with its clients on a shipment from Asia to Europe.

“Technology companies often lack the shipping and logistics expertise necessary to break into this industry,” Kukman said. “On the other hand, logistics companies venturing into the tech field may be held back by their reliance on established, old-school business practices.”

To register, CargoX collects “know your customer” and NVO license information “to establish roles and permissions on the platform.”

“Once companies register, they will receive their public and private key for signing the Smart B/Ls. This can be done in the Smart B/L distributed application provided by CargoX, or with the help of the CargoX Smart B/L API (application programming interface) integrated into the company’s system.”

That integration can take a few hours or weeks, depending on the workflow of the company, CargoX said.

The ultimate goal of bringing bills of lading to the blockchain solution is to create a common, encrypted repository of data. The secondary benefit of that process would be the potential to eliminate bank-backed letters of credit for suppliers, as the smart contract would automatically trigger payment.

“The shipping industry currently wastes billions of dollars on spending related to letters of credit, which are used in global trade as a payment guarantees,” Kukman said.

In terms of how the blockchain-backed bill of lading would function in practice, Kukman said that data will be encrypted and stored in a decentralized storage application.

“These are much safer than centralized storage, as they use the same blockchain security mechanisms as the billions of dollars worth of cryptocurrencies such as bitcoin currently in circulation,” he said. “Actual ownership (of the document) will be traded (sent) in the same way people send tokens today, from one wallet to another.”

Visit CargoX website, click here!

CargoX Whitepaper, click here!

Source: American Shipper, E, Johnson, 14 February 2014

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Kenya Standard Gauge Cargo TrainThe first standard gauge railway cargo train arrived in Nairobi on Monday at the ultra-modern inland container depot which was launched by President Uhuru Kenyatta a fortnight ago.

The arrival of the cargo train is in line with President Kenyatta’s promise to reduce the cost of doing business in the country. In his New Year message, President Kenyatta said the new commercial cargo train would cut costs and delays in trade for Kenyans and its neighbours.

The President said the delivery of a world-class railway on time and within budget, would attract world-class manufacturing and value-addition investments, which are critical to creating jobs and business opportunities.

The cargo train carried 104 containers, which is almost equivalent to the trucks operating daily on the Mombasa-Nairobi highway.

According to the Kenya’s Ports Authority head of Inland Container Deports Symon Wahome, the new commercial cargo train will revolutionize the transportation of cargo in Kenya.

While the meter train used to carry twenty to thirty containers, the standard gauge train will carry 216 containers. Four trains will operate daily and later increased to eight cargo trains. Source: The Daily Nation (Kenya), 1 January 2018.

 

Shanghai Yangshan Deep-Water Port’s Phase IV container terminal started its trial operations last Sunday. The 550-acre, $1.8 billion facility is the latest expansion of the Port of Shanghai’s complex on Yangshan Island, which has deeper water than the port operator’s mainland terminals.

The Port of Shanghai is already the busiest for container traffic in the world, handling a record 37 million TEU in 2016, and the new automated Phase IV terminal will cement its leading position with an additional seven berths and 4-6 million TEU of capacity. Phase III began operations in 2008, but the global financial crisis delayed construction of the long-planned Phase IV until 2014.

According to Chinese state media, Phase IV is the world’s largest automated container terminal, with computer-controlled bridge cranes, AGVs and rail-mounted gantry cranes. All of the equipment is Chinese-made, and the facility also uses a Chinese-designed automated terminal management system. About 100 out of a total of 280 pieces of the automated equipment have already been delivered and are in testing.

“The automated terminal not only increases the port’s handling efficiency, but also reduces carbon emissions by up to 10 percent,” said Chen Wuyuan, president of Shanghai International Port Group, speaking to Xinhua.

Yangshan is the biggest deepwater port in the world. Phase I was finished in 2004, and the following year construction wrapped up on a 20-mile, six-lane bridge to connect the facility to the mainland. Extensive land reclamation allowed for the construction of Phases I through III on new ground adjacent to the islands of Greater and Lesser Yangshan, which were previously home to small fishing communities.

The port handles about 40 percent of Shanghai’s exports, and its operators hope to see it grow as a transshipment hub as well. As of 2016, it operates under a free trade zone status, which speeds up customs procedures and facilitates transferring or storing foreign-origin cargoes. Source: Maritime Executive, 11 December, 2017. Pictures: China State Media

Egypt’s Ministry of Interior confirms that it has foiled a plot to smuggle a large shipment of cannabis weighing 6 tons into the country through the Mediterranean Sea on board a ship.

The Ministry said in an official statement that the efforts of its security services are continuing to abort the schemes of dangerous elements seeking to import and smuggle narcotics into Egypt.

It pointed out that early investigations of the General Directorate for Drug Control confirmed the intention of a gang to smuggle a large amount of cannabis stored in Syria to Egypt.

The crew of the ship managed to set sail from the Syrian port of Lattakia for landing off the coast of Egypt, but Egypt’s maritime security prevented them from doing so.

The ministry added that in light of the information available about the movement of the smugglers, they moved to the south of Crete to avoid arrest by the Egyptian authorities.

The ministry said that the concerned bodies coordinated with Greek authorities and provided them with information on the movements of the ship to be seized.

The coordination resulted in the Greek authorities seizing the ship and the cargo and arresting its crew of six persons with Syrian nationality.

The search of the ship resulted in the seizure of a total of 6 tons of cannabis hidden inside secret stores. Source: Egypt Independent, 9 December, 2017

ZIM lines

ZIM, an Israeli container shipping company, has successfully completed a blockchain document exchange pilot for paperless bills of lading using blockchain-based software from Wave to send a document that acknowledged receipt of cargo for shipment.

Wave connects all members of the supply chain to a decentralized network and allows them a direct exchange of files.

During the trial, all participants issued, transferred and received original electronic documents using Wave’s application, which manages ownership of documents on the blockchain to eliminate disputes, forgeries and unnecessary risks.

The containers, shipped by Sparx Logistics from China to Canada, were delivered to the consignees “without a hitch”, reported ZIM in an announcement about its breakthrough.

ZIM said that it is “convinced” that the blockchain technology and the Wave application is “the solution that will drive the trade to the digital era”.

The new blockchain-based system developed by Wave uses distributed ledger technology to ensure that all parties can issue, transfer, endorse and manage shipping and trade related documents through a secure decentralized network.

Wave’s application is free for shippers, Importers and Traders and requires no IT or operational changes.

Source: Port Technology (20 Nov, 2017 )

Hamburg Sud_1

Durban-based Hamburg Süd is the first shipping line – and the first South African Revenue Service (Sars) client – to be granted exemption from the requirement to submit paper manifests to local customs branches, thus becoming the first fully electronic cargo reporter.

While the electronic reporting of pre-arrival manifests to Sars has been a requirement since August 2009, shipping lines are, to date, still required to present pre- and post-arrival paper manifests to local customs branches in order to account for cargo. This was also because the data accuracy of electronic submissions varied significantly between different reporters.

Sars’ implementation of the new Manifest Processing (MPR) system in June 2016, provided industry with the mechanism to also report acquittal manifests electronically. Additionally, the system is able to match customs clearances to their corresponding cargo reports (manifests) in order to identify instances of non-reporting.

Three months after MPR was introduced, the facility for full paperless cargo reporting was made available to shipping lines and airlines who submit both pre-arrival and post-arrival manifests to Sars electronically; submit complete sets of manifests without any omissions; achieve a reporting data accuracy rate of 90% or higher in respect of both their pre-arrival and acquittal manifests reported for each of the three months preceding any application for exemption from paper reporting requirements; and can maintain that level consistently.

A significant benefit to carriers reporting electronically is the cost-saving of hundreds of thousands of rands spent per year in the paper and administrative costs associated with submitting paper manifests to Sars offices. The process is now more efficient allowing for improved risk management, security and confidentiality.

“Hamburg Süd’s core business strategy is to deliver a premium service to our customer, and to achieve this, compliance is a core driver. SARS paperless reporting is in line with our compliance and sustainability strategy,” said Jose Jardim, general manager of Hamburg Süd South Africa.

For Customs, the mandatory submission of cargo reports forms a significant part of the new Customs Control Act (CCA) in order to secure and facilitate the international supply chain.

With the impending implementation of Reporting of Conveyances and Goods (RCG) under the CCA – targeted for 2018 – carriers of internal goods in the sea and air modalities are urged to follow Hamburg Süd’s example and ensure that they become compliant in good time so that they can enjoy a smooth transition to the new legal dispensation.

Paperless cargo reporting would bring an end to one of the last remaining paper-based processes in customs while further contributing to the expedited processing of legitimate trade through an enhanced and integrated risk management environment.

According to a Sars spokesman technical stakeholder sessions to implement the reporting requirements introduced by the new Customs Control Act are due to commence soon and carriers and other supply chain cargo reporters are urged to attend in order to ensure they adapt their systems in good time.

Source: adapted from FTW Online, Venter. L, “German shipping line first Sars client to become fully electronic reporter”, September 14, 2017.

Blockchain

T-Mining is currently working on a pilot project that will make container handling in the port of Antwerp more efficient and secure. Using blockchain technology, processes that involve several parties – carriers, terminals, forwarders, hauliers, drivers, shippers etc. – are securely digitised without any central middleman being involved.

Just getting a container from point A to point B frequently involves more than 30 different parties, with an average of 200 interactions between them. Given that many of these interactions are carried out by e-mail, phone and even (still, nowadays) by fax, paperwork accounts for up to half of the cost of container transport.

“We aim to do something about this,” says Nico Wauters, CEO of T-Mining. This Antwerp start-up has developed a solution for a recognised problem in the port. When a container arrives in the port it is collected from the terminal by a truck driver or shipper. To ensure that the right person picks up the right container a PIN code is used. However, the PIN code is transmitted via a number of parties, which of course is not without risk. Somebody with bad intentions can simply copy the PIN code, which naturally can cause great problems.

“We have developed a very secure solution for this,” explains Nico Wauters. “Currently, when we want to transfer a valuable object we generally make use of a trusted intermediary to carry out the transfer. For instance, when you want to sell a house the notary not only carries out all the paperwork but also ensures that the money lands safely in your bank account while the buyer receives full title to the property, without any unpleasant surprises for either party. But this intermediary naturally does not work for free, and furthermore the additional step causes extra delay.”

The blockchain solution overcomes these issues, permitting safer and faster transfer of valuable objects, fully digitally and without a middleman. “With our blockchain platform the right truck driver is given clearance to collect a particular container, without any possibility of the process being intercepted. Furthermore our blockchain platform uses a distributed network, so that the transaction can go ahead only if there is consensus among all participating parties, thus excluding any attempts at fraud or undesired manipulations.”

A pilot project is currently running in the port of Antwerp with a limited number of parties. “We want to test whether it all works smoothly in practice,” says Nico Wauters. “Together with PSA, MSC, a forwarder and a transporter, we ensure secure handling of the first containers on our blockchain platform. Thanks to the City of Antwerp we even have an office in Singapore where we are working hard to introduce our solution there too. Our ambition is to serve the first paying customers by the end of this year,” Nico Wauters concludes. Source: Port of Antwerp

EmptyTrips

Founder and CEO of tech start-up EmptyTrips; Africa’s first smart transport marketplace says she is aware that the introduction of her new transport concept could possibly disrupt the logistics industry as we know it.

Benji Coetzee’s “Filling spaces to places” is a similar concept to that of Uber and Airbnb. It’s based on convenience and inexpensive transport services that pick up goods and take them to a clients destination faster, and cheaper than conventional logistics and road freight services.

“The EmptyTrips concept is based on smart algorithms that match empty trips on trucks, trains and planes, to the demand. This opens up access to cross-border runners using vetted transporters for your transport needs,” Coetzee said.

Logistic often account for a large portion of product and service costs, with transporters often battling with the reality of empty return legs. EmptyTrips has opened up a platform for users to offer their empty trips, find an empty trip from current postings, and request an empty trip as a customer. It aims to bridge the gap for competitive rates, and fill these empty return legs allowing the transporter to recover fees on otherwise empty trips while the customer pays less for transport.

“For too long we have focused on hard infrastructure, when we could be using technology to reduce congestion, delays and assist in our goals of high regional trade.

The on-demand transport service is likely to help with these problems and provide an ease to transporting goods from one place to another.

Transporters and senders of goods can sign-up to www.emptytrips.com. The transporters can bid for cargo needing to be moved and shippers can get competitive open bids. Source: TransportWorldAfrica.com

Uber-Freight-Truck

Global transportation network company Uber has launched Uber Freight – an online booking application “which aims to empower truck drivers and small trucking companies to run and grow their business”, according to a blog on the new Uber Freight site launched last week.

Uber Freight has its own app, of course, which is available on iOS and Android. There’s a sign-up page for drivers, who will be vetted before they’re allowed to use the Uber Freight. The service “takes guesswork out of finding and booking freight, which is often the most stressful part of a driver’s day,” according to Uber, which says it’s dismantling a process that typically takes “several hours and multiple phone calls.”The blog explains that vetted users download the app, search for a load, and simply tap to book it.

“We send a rate confirmation within seconds, eliminating a common anxiety in trucking about whether or not the load is really confirmed,” said an Uber Freight spokesperson.

Another advantage of the new booking service is Uber Freight is committed to paying within a few days, fee-free, for every single load.

Drivers can browse for nearby available loads, see destination info, distance required and payment upfront and then tap to book.

The idea is to streamline something that used to take hours of back and forth negotiation via phone or other communication, putting it in a simple workflow with confirmation of job acceptance and rates paid within a few seconds.

Uber’s not the only company trying to change the trucking industry. Amazon is working on a similar service that would pair drivers with companies that need goods delivered. Manufacturers big and small are also working on bringing semi-or fully-autonomous technology to long haul trucks.

Uber Freight is currently only available in the United States.

Mozambique flagThe Maputo Corridor Logistics Initiative (MCLI) recently published a communication informing it’s stakeholders about the Single Road Cargo Manifest as received from the Mozambican Revenue Authority (MRA).

The MRA has informed MCLI that the 2nd phase of the Single Road Cargo Manifest process will come into effect from the 16th of June 2017, when all international road carriers transporting goods to Mozambique through the Ressano Garcia border post will be required to submit the Road Cargo Manifest on the Single Electronic Window platform in compliance with national and international legislation. MRA Service Order Nr 17/AT/DGA/2017, in both Portuguese and English, is attached for your consideration.

For information and full compliance by all members of staff of this service, both (National and Foreign) International Cargo Carriers, Clearing Agents, Business Community, Intertek and other relevant stakeholders, within the framework of the ongoing measures with a view to adequate procedures related to the submission of the road cargo manifest, for goods imported through the Ressano Garcia Border Post, in strict compliance to both the national and international legislations, it is hereby announced that, the pilot process for transfer of competencies in preparation and submission of the road cargo manifest to Customs from the importer represented by his respective Clearing Agent to the Carrier is in operation since December 2016.

Indeed, the massification process will take place from 15th of April 2017 to 15th of June 2017, a period during which all international carriers (national and foreign) who use the Ressano Garcia Border, are by this means notified to register themselves for the aforementioned purposes following the procedures attached herewith to the present Service Order.

As of 16th of June 2017, the submission of the road cargo manifest into the Single Electronic Window (SEW) for the import regime, at Ressano Garcia Border, shall be compulsory and must be done by the carrier himself.

International road carriers must therefore register for a NUIT number with the Mozambican Revenue Authority between the 15th of April and the 15th of June 2017 and the necessary application form is included. Road carriers are urged to do so as soon as possible to enable the continued smooth flow of goods through the border post.

Specific details can be found here! 

Source: MCLI

American Shipper

This year’s American Shipper’s benchmark report examines the extent to which freight buyers rely on the art of negotiation versus the technological tools to refine the procurement process. It also looks at the background dynamics confronting procurement professionals to show why investment in technology is so important. Visit AmericanShipper.com – requires registration to download!

It’s not an option for shippers and 3PLs to ignore the data that’s washing over the logistics industry anymore. And respondents to American Shipper’s most recent Transportation Procurement Benchmark Study, The Art and Science of Buying Freight, recognize that as much as anyone.

Only one quarter of freight buyers feel their organizations are above average when it comes to procurement technology. Nearly half admit they are still using predominantly spreadsheets and email to conduct procurement across modes and regions. Two-thirds are still reliant on EDI. Source: americanshipper.com

International trading involves many participants all around the globe. These participants may not necessarily have the needed trust of all parties, especially at the initial stages, when newcomers join the trade. Blockchain can provide the needed trust to capture key transaction activities as immutable records, as well as storing and sharing encrypted legal and financial documents.

Visibility of transaction records and documents are tightly controlled by blockchain, permitting sharing only among entrusted and allowed parties. In this demo, IBM demonstrates how blockchain may support such an application.

The blockchain solution being built by the two companies is expected to be made available to the ocean shipping industry later this year, according to a joint statement from International Business Machines Corp and the container unit of A.P. Moller-Maersk. It would help manage and track the paper trail of tens of millions of shipping containers globally by digitizing the supply chain process from end to end.

This will enhance transparency and make the sharing of information among trading partners more secure.

When adopted at scale, the solution based on the Linux Foundation’s open source Hyperledger platform has the potential to save the industry billions of dollars, the companies said.

“Working closely with Maersk for years, we’ve long understood the challenges facing the supply chain and logistics industry and quickly recognized the opportunity for blockchain to provide massive savings when used broadly across the ocean shipping industry ecosystem,” said Bridget van Kralingen, senior vice president, industry platforms, at IBM.

IBM and Maersk intend to work with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities to build the new global trade digitization product, the companies said.

The product is also designed to help reduce or eliminate fraud and errors and minimize the time products spend in the transit and shipping process.

For instance, Maersk found that in 2014, just a simple shipment of refrigerated goods from East Africa to Europe can go through nearly 30 people and organizations, including more than 200 different communications among them.

The new blockchain solution would enable the real-time exchange of original supply chain transactions and documents through a digital infrastructure that connects the participants within the network, according to IBM and Maersk. Source: Reuters

containeryard

The U.S. National Retail Federation (NRF) and a coalition representing retailers, manufacturers, truckers, transportation intermediaries and other business groups has asked the Federal Maritime Commission to set new policy preventing terminal operators and ocean carriers from charging unfair fees when uncontrollable incidents such as storms and strikes keep cargo from being picked up from ports on time.

“Recent events involving port congestion, labor strife, an ocean carrier bankruptcy, inclement weather and other disruption events have had crippling effects on U.S. ports and the stakeholders who rely on the efficient movement of goods,” the 25-member Coalition for Fair Port Practices said in a petition filed with the commission. During the incidents, storage and use charges have continued “even though shippers, consignees and drayage providers had no control over the events that caused the ports to be inaccessible and prevented them from retrieving their cargo or returning equipment.”

Cargo owners and trucking companies are normally given a certain number of free days to pick up containers of imported goods from ports after they have been unloaded from ships. After that, they can be charged demurrage, a fee intended to ensure that containers are removed quickly and efficiently. In addition, detention and per diem fees can be charged if the cargo containers and chassis used to haul them are not returned within a specified time.

That system was thrown into disarray this fall when the bankruptcy of South Korea’s Hanjin Shipping left cargo owners unable to pick up containers on time and later prevented them from returning containers and chassis, says the NRF.

Delays have also occurred during other port disruptions cited in the petition, including the 2014-2015 labor slowdown at West Coast ports and Hurricane Sandy on the East Coast in 2012.

The coalition said millions of dollars in fees have been charged during such incidents:

  • A retailer was charged $80,000 because it took up to nine days to retrieve containers when only four free days were allowed.
  • A trucking company was charged $1.2 million after long lines at New York and New Jersey ports kept it from returning containers on time.
  • A transportation company was charged $1.25 million after containers it tried to return were turned away at West Coast ports. The amount was eventually reduced to $250,000 but only a year after the company was forced to pay the fees upfront.

“Shippers, consignees and drayage providers do not create and cannot avoid these events,” the group said. “They cannot control the weather. They do not choose the terminals that carriers use. They are not parties to port labor collective bargaining agreements.”

The federal Shipping Act requires that the fees and related practices be “just and reasonable.” The petition asks the FMC to adopt a policy that would require free days to be extended during times of port congestion, weather-related events, port disruptions or delays caused by government actions or requirements beyond the control of the parties picking up or returning containers. Demurrage and similar fees charged during such incidents would be declared “unreasonable.” In some cases, “compensatory” fees could be charged provided that they did not exceed actual storage or equipment use costs. The proposed policy would apply to ocean carriers and marine terminal operators. Source: Maritime Executive

bascap

Leaders from global shipping firms, freight forwarders, brand owners whose products are counterfeited and industry organizations representing both industries signed a joint Declaration of Intent to Prevent the Maritime Transport of Counterfeit Goods in Brussels last week.

The event marked the first time the global shipping industry and brand owners have made a public commitment to work together to stop the transport of counterfeit goods on shipping vessels.

Initial signatories include the leading global shipping firms and freight forwarders and ten major multinational brand manufacturers, along with the International Federation of Freight Forwarders Associations (FIATA), and the International Chamber of Commerce’s (ICC) Business Action to Stop Counterfeiting and Piracy (BASCAP) and Commercial Crime Service (CCS).

More transporters, brand owners and their industry associations are expected to join the voluntary initiative as awareness grows.

According to the United Nations Office on Drugs and Crime, about 90 percent of all international trade is moved around the world in more than 500 million containers on 89,000 maritime vessels. While this represents approximately 90 percent of all international trade, UNODC says that less than two percent of these containers are inspected to verify their contents. This results in enormous opportunities for criminal networks to abuse this critical supply chain channel to transport huge volumes of counterfeit products affecting virtually every product sector.

According to a recent OECD/EUIPO report, $461 billion in counterfeit goods moved through international trade in 2013, with almost 10 percent being shipped on maritime vessels.

Maersk Line and CMA CGM Group, two of the largest global transport companies with approximately half of all global shipping, and Kuehne and Nagel and Expeditors, two of the leading freight forwarding and logistics companies with total revenues of more than $27 billion, were the first in their industries to sign the Declaration.

The non-binding Declaration acknowledges the “destructive impact” of counterfeits on international trade. It calls on the maritime transport industry to address it “through continuous proactive measures, and corporate social responsibility principles.” The Declaration includes a zero tolerance policy on counterfeiting, strict supply chain controls and other due diligence checks to stop business cooperation with those suspected of dealing in the counterfeit trade.

This commitment paves the way for new voluntary collaboration programs between intermediaries and brand owners to stop abuse of the global supply chain by counterfeiters.

“We are proud to be among the first in our industry to sign this historic Declaration,” said Michael Jul Hansen, Customs and Trade Compliance Lead for Maersk Line. “Maersk has been a leader in taking steps to prevent the use of our vessels for the shipment of counterfeit and other illicit goods, and this Declaration is a reaffirmation of our intent to do everything we can to ensure our ships are counterfeit free.”

The Declaration is a direct reaction to the concerns of brand owners that vessels transporting their legitimate products were also being exploited by criminal networks to transport fake versions. This phenomenon was summarized in a landmark report on the Role and Responsibilities of Intermediaries: Fighting Counterfeiting and Piracy in the Supply Chain, published in 2015 by BASCAP. Following publication of the report, BASCAP organized a working group of its members to initiate a cross-sector dialogue with the transport industry to discuss ways to work together to find voluntary solutions. Source: Maritime Executive 

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News 24 reports that the Competition Commission on Wednesday conducted a search and seizure operation at the premises of six cargo shipping companies operating in the Western Cape and KwaZulu Natal (KZN) on suspicion of collusion and rate fixing, the body said in a statement.

“The Commission has reasonable grounds to suspect that Hamburg Sud South Africa, Maersk South Africa, Safmarine, Mediterranean Shipping Company, Pacific International Line South Africa and CMA CGM Shipping Agencies South Africa have engaged in collusive practices,” the Commission said.

The companies’ practices aimed to among other things fix the incremental rates for the shipment of cargo from Asia to South Africa, which was in contravention of the Competition Act.

According to the Commission, the search and seizure operation is conducted as part of an ongoing investigation which was initiated by the Commission based on information from a member of the public.

The companies under investigation transport cargo for import and export purposes across the globe, including South Africa. They use large metal containers as packaging crates and in-transit warehouses to store and transport general cargo such as frozen foods, garments and footwear.

The customers of these companies are mainly clearing and freight forward agents.

“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping liners in this region results in inflated prices for cargo transportation,” said Tembinkosi Bonakele, commissioner of the Competition Commission.

“Cartels of this nature increase the costs of trading in the region and render the region uncompetitive in the world markets. Such cartels have the effect of significantly derailing the economic growth of the region.”

Reuters reported that Maersk and MSC confirmed the raids and said they were cooperating with authorities. The other companies did not respond to Reuters’ requests for immediate comment.

“The fact that the SACC carries out such inspections does not mean that a company has engaged in anti-competitive behaviour,” Maersk said.

EU antitrust regulators in July accepted an offer from Maersk and 13 competitors to change their pricing practices in order to stave off possible fines. Source: News24