Changes in Italy: an update of the loading restrictions in Europe

Supporting Africa’s logistics needs with bulk ocean freight

Before seafreight containers took over sixty years ago, break bulk was the main form of moving cargo. Roughly 90% of all goods worldwide are still shipped by sea, of which 70% is now containerised cargo. Break bulk seafreight however still makes up a significant segment of transportation and has several advantages for clients, whether by air or seafreight, says Detlev Duve, managing director of DACHSER South Africa.

Globally, logistics leader DACHSER has undertaken many complex break bulk shipments. Due to Africa’s economic reliance on the extraction of natural resources, logistics operators in Africa will often be required to facilitate the movement of large machinery and parts.

Celebrating a milestone moment: Detlev Duve celebrates 30 years with DACHSER South Africa! 

Today, we honour Managing Director Detlev Duve as he marks his 30th work anniversary with DACHSER South Africa—a remarkable journey of passion, dedication, and growth. As we look back on Detlev Duve's 30 years with the company, it's clear that his journey is one of stong relationships, excellent achievement and unwavering commitment to values that truly matter, overcoming challenges to build a solutions-focused, experienced team with deep understanding of the markets in Africa.

Step by step toward the goal — Sea freight groupage containers facilitate the continuous flow of goods

In turbulent economic times, sea freight groupage containers are becoming increasingly popular. Production bottlenecks, fragile global supply chains, and a container shortage have further increased the demand for small and predictable shipment sizes in sea freight. Michael Kriegel, Department Head DACHSER Chem Logistics, explains the service that enables a reliable flow of goods in sea freight. He also talks about why a good network connection is crucial, especially for goods with high security requirements.

Companies are already analyzing their global supply chains and increasingly shifting their shipments to sea freight groupage (called “less than container load,” or LCL for short). The big advantage of groupage for customers is that they can ship smaller loads without having to pay for a full container. As a result, they can maintain a continuous flow of goods, even in the event of production bottlenecks, and also respond more flexibly to seasonal fluctuations. LCL containers are often prioritized over full containers in the loading process, which provides an additional time advantage and allows for better planning of transportation times. DACHSER markets what it calls “consolidation boxes” - customers pay only for the space they actually occupy in the containers. In addition, the company plans departures weeks in advance rather than only once production volumes are known. This means that containers, which are still in short supply, can be pre-booked in good time and customers retain flexibility when booking. 

Many companies, especially in the automotive, life science, and healthcare industries, have been using groupage shipments by sea for years. But this service is also suitable for the chemical industry, which places particularly high demands on safety and transparency during transport - and thus needs a logistics provider with the appropriate experience. DACHSER is one such provider. It set up a purchasing partnership with the German Chemical Industry Association (Verband der Chemischen Industrie e.V., or VCI) in 2009. This successful alliance for European groupage shipments from Germany was then expanded in 2015 to include air and sea freight. Member companies of the association now benefit from globally standardized core services in the groupage network - transport, warehousing, and IT solutions. All this specialist industry experience has been pooled in the DACHSER Chem Logistics team. 

“In shipments from customers in the chemical industry, which sometimes contain dangerous goods, the decisive factor is always safety. We have to protect life, limb, and the environment,” says Claus Freydag, Managing Director DACHSER Air & Sea Logistics Germany. “DACHSER also boasts global dangerous goods expertise in the groupage container segment and covers all LCL-compatible IMO classes in its own network and in its partner network,” he adds. The company’s central dangerous goods management system and its more than 250 regional safety advisors monitor compliance with special regulations governing the transport of dangerous goods. In addition, many DACHSER employees are trained annually in the particular requirements of chemical logistics.

For sea freight groupage, the sea freight team consolidates various LCLs and loads them into a full container. This optimizes utilization of container capacity, which in turn provides the basis for economical transport costs. Maximum utilization also improves transport sustainability while reducing the risk for individual companies at a time when supply chains are fragile. “Ports around the world have been clogged for months, causing significant delays - and making it rare, if not impossible, for shipping companies to stay on schedule. Instead of sending a full container on its way, which can get held up if loading windows are missed, more and more customers are opting for sea freight groupage containers. This reduces their risk by spreading it over several departures and ships and ensures a more timely transport,” Freydag explains.

Intelligent logistics solutions and a strong network are crucial

Demand for LCL services will continue to grow, even apart from the impact of the pandemic. That’s why DACHSER, as a market leader in the German and European groupage market, has also expanded its maritime LCL network to include 70 weekly direct services to and from Germany. “With a focus on the main global routes, we are systematically expanding our dangerous goods capacity as well. This of course means serving the major markets in both the eastern and western hemispheres, such as China, India, and the US,” Freydag says. In 2021, DACHSER shipped around 19,700 cbm of dangerous goods as LCL with customers in the chemical industry. Dangerous goods thus already represent 15 percent of DACHSER ASL Germany’s LCL business. In addition to the usual port-to-port services, DACHSER also operates various direct import services to the hinterland or other European cities. For example, once a week LCL groupage containers travel directly from port locations such as Hong Kong, Shanghai, and Ningbo to ports such as Hamburg and Bremen - but also with direct loading to Frankfurt, Kaufbeuren, Cologne, Munich, Nuremberg, Stuttgart as well as Copenhagen and Gothenburg. Direct loading minimizes the risk of cargo damage and provides additional safety by eliminating deconsolidation at the transit terminal.

Furthermore, this increases profitability and achieves additional lead time advantages by rectifying bottlenecks in the port. “DACHSER’s global network connects all groupage transports on land and water. We link our own sea freight groupage container services to and from Germany to the comprehensive range of services offered by DACHSER European Logistics, thus enabling end-to-end service throughout Europe,” Freydag says. For storage and unloading, DACHSER is increasingly using its own branch infrastructure in addition to the standard container freight stations (CFS) at the ports. When port capacity is limited, companies thus benefit from additional dispatch quality and shorter transit times.

This concept, in keeping with the idea of “everything from a single source” links the European overland transport network with the global sea freight network - a feature that not every company can offer. “Thanks to the end-to-end solution of our LCL product, which goes beyond just sea transport, we can maintain high quality across the aforementioned carriers and offer transparent traceability of the goods,” Freydag adds.

The past two years have seen risk minimization in the global movement of goods become a crucial factor for success. To take full advantage of LCL shipping, it is crucial that pick-up and onward carriage are also handled in an integrated manner, thus ensuring expertise in the safe transport of dangerous goods along the entire transport route.

Avoiding customs risks with DACHSER South Africa

Customs plays a vital role in protecting society by securing transport chains by ensuring product safety and by combating cross-border crime. However, inefficient customs can be a barrier to trade and a key risk factor for companies already operating in a more challenging environment as a result of the COVID-19 pandemic. Now more than ever, the value derived from using an experienced logistics provider can lead to significant cost savings. For clients experiencing cost drainage and time delays when moving goods, it might be time to consider their holistic logistics solution carefully.  Read more

Managing Director of DACHSER South Africa, Detlev Duve, says, “Measures undertaken to address the health crisis of the COVID-19 pandemic, including stringent social distancing regulations and stricter transit requirements, have impacted the movement of goods, border procedures and customs in unprecedented ways. Customs border administrations across the regions, already overloaded, have been further stretched, with an impact on the smooth flow of logistics across the region.  The digitisation of transport and trade procedures and the harmonisation of customs regulations must be a strategic imperative during COVID-19, and beyond. However, in many countries across the African continent, we’re not there yet.”

To avoid significant time delays and unforeseen cost implications, Duve says it’s vital that companies involved in international trade understand and comply with changing regulations and requirements. However, getting to grips with regulatory environments be challenging for companies and divert resources away from core business priorities, making a trusted logistics partner an essential part of doing business.

“It has always been a priority Dachser’s teams to be up to speed on customs regulations and procedures, which includes the legal requirements necessary for moving goods into or out of South Africa - and the African continent,” says Duve.  “Our Customs team follows streamlined processes and includes specialist personnel who can analyse and assess client requirements. 

Customs compliance

DACHSER's teams can verify all paperwork for compliance and accuracy, as well as verify and understand International Commercial Terms (known as Incoterms). “Our teams must understand what our clients are importing or exporting, and the requirements around these products. They further consider where costs can be saved or passage expedited. For example, certain processes could entitle an importer or exporter to claim back a percentage of duties paid to Customs.” 

Rigorous compliance with Customs requirements includes making sure that the product is correctly classified and declared, that it is accurately valued and that the necessary documentation is on hand at the time of clearance, says Duve.  “We have a good working relationship with the local customs’ authorities and have worked closely with them as we moved through the changing regulations of the pandemic, and the transportation of essential goods.”

Many delays occur when importers provide the incorrect tariff headings, or do not have the sales agreement, proof of payment other required information to hand.   Delays can also be experienced when the importer does not have the necessary permission to import the product or cannot produce the proper permit or Letter of Authority. Duve says, “We advise our clients thoroughly on the requirements before beginning any process.  We then closely monitor our clients’ entries, and if there is a possibility of delay, we act upon it immediately through the various channels. Our teams follow these up frequently, and escalate until goods are released.”

Bonded storage to save costs

DACHSER also offers bonded storage, which enables cargo to be stored for up to 2 years.  “Bonded store allows the importer a better cash flow given that they can remove goods only as and when needed.  In doing so, the importer is only required to pay the VAT and Customs duties on those items extracted.  Additionally, the importer can also transfer ownership of the goods, making the new owner liable for any VAT and duties payable.”  Duve says that importers are also able to inspect the goods in the bond store, before paying VAT and duties, to ensure that the correct cargo was shipped and that the quality and quantity is correct. 

DACHSER offers another option to clients when a portion of imported goods are going to be directly exported. “If the client does not need to clear the entire shipment, DACHSER South Africa will clear the goods directly into our bond store and no duty or VAT will be paid until the cargo is moved out,” Duve explains. “We keep full control of the stock.  Should the client require a portion of stock to be released for local supply we clear the goods, paying the duty and VAT on behalf of the client and billing this back.  If a portion of the stock needed to go to an African country, we would move this out with a bonded truck to that country, where the cargo would be cleared.  In this way, the client is spared having to pay duty and VAT twice.”

Duve says that DACHSER South Africa continues to seek value-added solutions for their clients as they deal with the pandemic.  “Our commitment is to provide our clients with a holistic and seamless solution and we see ourselves as an extension of their businesses.  This means that we take care of all aspects of the transportation, including customs, storing, handling and the safe delivery of goods from origin to destination.”