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Overcoming Africa’s logistics challenges: Dachser South Africa's approach to customs 

Trade is the lifeblood of any economy, and the smooth operation of customs and trade procedures is critical. However, logistics companies moving goods across the African continent face a unique set of challenges. These include inadequate road and rail networks, poor infrastructure, excessive official and unofficial roadblocks, significant border delays and complex customs and excise. A lack of coordination among multiple government agencies often results in inefficiencies and bottlenecks that hinder the smooth flow of goods across borders.

The establishment of a single market has introduced new distribution systems for customs and excise revenue, which has necessitated adjustments from logistics companies. The secretariat of the African Continental Free Trade Area (AfCFTA) agreement launched an interim trading arrangement with eight qualifying countries (Cameroon, Egypt, Ghana, Kenya, Mauritius, Rwanda, Tanzania and Tunisia) to test the agreement’s provisions while negotiations are ongoing. Although trading under the AfCFTA started in January 2021, commercially significant trade has yet to happen, primarily due to the delayed Phase 1 negotiations on trade in goods and services such as the negotiations on Rules of Origin (RoO).

Regional integration arrangements further complicate matters. For example, the coexistence of the Southern African Customs Union (SACU) and the Common Market for Eastern and Southern Africa (COMESA) poses specific challenges. Intensive documentation requirements, samples for laboratory analysis, complex tariff classification, and valuation delays are some other hurdles that affect trade facilitation.

In this challenging environment, logistics companies play a pivotal role. DACHSER South Africa has been successfully navigating these complexities for over forty years, providing comprehensive logistics and customs management solutions that ensure the smooth movement of goods.  “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.” 

To deal with customs challenges, DACHSER focuses on compliance, transparency, and adaptability, says DACHSER Managing Director Detlev Duve. "Compliance with local and international customs regulations is essential, requiring a detailed understanding of these laws and regulations. Transparency in operations helps build trust with authorities and clients, while adaptability allows logistics companies to adjust to changing regulations and market conditions."

In order 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.

Duve says DACHSER's teams are well-versed in customs regulations and procedures. “We ensure compliance with customs requirements, including correct classification and documentation, which can save customers considerable time. Understanding Incoterms and maintaining a good working relationship with local customs authorities are key components of our approach. We 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.” 

Customs developments have also created some opportunities for logistics companies and clients to streamline their operations.  For example, in South Africa, the government has introduced measures such as accredited client statuses for those registered for customs and excise activities.

Global logistics operations like DACHSER are also able to fully leverage technology to improve their customs handling processes. “Our digital tools assist in accurately calculating duties, tracking shipments, and ensuring documentation is correctly filed, reducing the risk of errors and delays,” says Duve.

DACHSER South Africa also offers value-added solutions for clients such as bonded storage, which allows cargo to be stored for up to two years, improving cash flow for importers. The company further provides an option for clients when a portion of imported goods will be directly exported, sparing them from having to pay duty and VAT twice. “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. “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.” 

While the customs landscape in South Africa and Africa presents formidable challenges, logistics companies like DACHSER South Africa have found ways to navigate these complexities and deliver excellent service to their customers. Now more than ever, the value derived from using an experienced logistics provider in Africa can lead to significant cost savings.

Custom DACHSER technology supports truly intelligent warehousing

In a challenging environment of escalating supply chain costs, the demand for intelligent logistics with optimal efficiency and a tailored offering is critical. The pandemic has only accelerated the development of logistics warehouses into flexible, specialised and digitally-enabled spaces to meet the evolving requirements of their customers.

Safeguarding the supply chain: A guide to transporting dangerous goods

In the intricate world of logistics, the transport of dangerous goods poses unique challenges that require specialised expertise and robust safety measures. These goods, encompassing a variety of materials such as chemicals, batteries, and fertilisers, demand meticulous handling to prevent risks to people, property, and the environment. Dachser South Africa has extensive experience in handling hazardous materials, including batteries and fertilisers, with a steadfast commitment to safety and regulatory compliance.

Managing Director of DACHSER South Africa, Detlev Duve, emphasises the importance of meticulous safety measures and adherence to international standards. "At Dachser, our priority is to ensure that all dangerous goods are transported safely and efficiently without compromising on quality or safety," says Duve. "Our teams are trained to manage the complexities of these shipments, adhering to the strictest compliance protocols."

Transporting dangerous goods involves navigating a complex landscape of regulations, safety concerns, and logistical hurdles. Duve outlines key considerations:

Regulatory compliance: Logistics companies must adhere to stringent international, national, and local regulations. This includes compliance with frameworks like the International Maritime Dangerous Goods (IMDG) Code and the IATA Dangerous Goods Regulations. Failure to comply can result in severe penalties and safety incidents.

Proper handling and packaging: Dangerous goods require specialised packaging that prevents leaks, spills, and other hazards. Handling these materials demands trained personnel equipped with the knowledge to manage risks effectively.

Complex supply chains: The logistics of dangerous goods often involve multi-modal transport, utilising road, air, and sea freight. Coordinating these modes while maintaining safety standards adds another layer of complexity.

Specialised training: Regular training programs ensure that employees are well-versed in handling hazardous materials and responding to emergencies.

Advanced technology: The use of real-time tracking systems allows for continuous monitoring of dangerous goods, enhancing both security and efficiency.

Emergency preparedness: Comprehensive emergency response plans and partnerships with local authorities are crucial for swift action in case of an incident.

DACHSER South Africa's operations are aligned with key frameworks such as the International Maritime Dangerous Goods (IMDG) Code and the IATA Dangerous Goods Regulations, ensuring rigorous compliance across all levels. Duve highlights the company's strategic approach to managing hazardous materials: "Our specialised teams are equipped with the knowledge and tools necessary to handle dangerous goods at every stage of transport. From proper labelling and packaging to leveraging advanced technology for real-time tracking, we leave no stone unturned in our pursuit of operational excellence."

The company has invested in state-of-the-art infrastructure and equipment as part of its commitment to safety. Warehousing facilities and vehicles are designed to accommodate the specific needs of hazardous materials, ensuring they are stored and transported in optimal conditions.

"Goods such as fertilizers and batteries require specialised knowledge and infrastructure to ensure their safe and efficient transport," says Duve. "For fertilisers, we must adeptly manage multi-modal transport systems, often combining road, rail, and sea routes to reach remote agricultural areas. This requires meticulous planning and coordination to ensure timely and efficient delivery. Regulatory compliance is another critical consideration, as the movement of fertilisers is subject to stringent safety and environmental standards across different countries."

Shipping lithium batteries involves strict regulations to ensure their safe transport and minimise fire or explosion risks. These rules define packaging type, labelling, documentation, and handling requirements. As Detlev Duve highlights, "Proper packaging is crucial for safety, requiring lithium batteries to be packed in strong, rigid outer packaging to resist damage. Packages must also feature specific labels to identify the battery type and associated risks. "Safety relies on clear communication and proper handling."

In addition to robust internal protocols, DACHSER South Africa maintains comprehensive emergency response plans and collaborates closely with local authorities to ensure rapid action in case of an incident.

As logistics continue to evolve, companies like DACHSER are paving the way for safer and more efficient transport of hazardous materials. "Our focus remains on setting benchmarks for safety and efficiency. We are proud to contribute to global supply chains, ensuring that even the most challenging shipments reach their destination safely," Duve says.

Best practices guide for transporting dangerous goods
Detlev Duve, Managing Director of Dachser South Africa

The transport of dangerous goods is a critical component of global logistics, demanding precision, expertise, and unwavering adherence to safety protocols. Transporting goods such as chemicals, fertiliser and batteries requires meticulous planning and execution to ensure safety and compliance. This guide outlines essential best practices that logistics companies should adopt to manage hazardous materials effectively.

1. Regulatory compliance

Adherence to regulations: Ensure compliance with international, national, and local regulations such as the International Maritime Dangerous Goods (IMDG) Code, ADR for road transport, and IATA Dangerous Goods Regulations for air transport.

Licensing and permits: Obtain necessary permits and licences for handling and transporting dangerous goods across different regions.

2. Proper labelling and documentation

Accurate labelling: Use standardised labels and placards that clearly identify the type of hazardous material being transported. This includes UN numbers and hazard class symbols.

Comprehensive documentation: Prepare detailed shipping documents, including Material Safety Data Sheets (MSDS), transport manifests, and emergency contact information.

3. Employee training

Specialised training programmes: Implement regular training for employees involved in the handling and transportation of dangerous goods. Training should cover identification, handling procedures, and emergency response.

Certification: Ensure that personnel are certified to handle specific classes of dangerous goods, as required by regulations.

4. Use of appropriate packaging

Certified containers: Utilise packaging materials and containers that meet or exceed the standards set by regulatory bodies for the specific type of hazardous material.

Integrity checks: Conduct regular checks on containers to ensure they are free of leaks, damage, or deterioration.

5. Emergency response planning

Comprehensive plans: Develop and maintain updated emergency response plans that outline procedures for dealing with spills, leaks, or accidents involving dangerous goods.

Partnerships with emergency services: Collaborate with local emergency services and have clear communication channels for rapid response in case of an incident.

6. Regular audits and inspections

Internal audits: Conduct periodic internal audits to assess compliance with safety protocols and identify areas for improvement.

Third-party inspections: Engage independent experts to perform inspections and provide insights into best practices and emerging risks.

7. Adhering to international standards

Global best practices: Align company operations with international standards such as ISO 9001 for quality management and ISO 45001 for occupational health and safety.

Continuous improvement: Stay informed about updates to international standards and integrate changes promptly into company practices.

8. Leveraging technology

Real-time tracking: Implement GPS tracking systems to monitor the location and condition of dangerous goods throughout the supply chain.

Automated systems: Use automated systems for inventory management and compliance checks to minimise human error.

Implementing these best practices ensures that logistics companies can safely and efficiently transport dangerous goods while minimising risks to people, property, and the environment. By focusing on regulation, training, technology, and proactive planning, companies can enhance their operational standards and maintain a robust safety culture.

(ENDS)

About DACHSER:

Dachser, a family-owned company headquartered in Kempten, Germany, provides transport logistics, warehousing, and customized services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide. Thanks to some 37,300 employees at 433 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 8 billion in 2024. The same year, the logistics provider handled a total of 83.2 million shipments with a tonnage of 44.1 million metric tons. Country organizations represent Dachser in 43 countries. For more information about Dachser, please visit dachser.com

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