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Discontinuation of the additional service “cash on delivery”

Digitalization and automation are key topics in online business as well as in logistics. As a result, a large number of online payment options have developed that are used in B2B and B2C business worldwide. The hygiene measures established as a result of the Corona crisis and the change in payment behaviour make it more difficult to use means of payment such as "cash on delivery". For DACHSER, the previous additional service "cash on delivery" is no longer necessary and will therefore discontinue this form of payment from 1 July 2020.

DACHSER secures long-term air freight capacity

DACHSER Air & Sea Logistics is extending its charter program on the route between Shanghai and Frankfurt to cover the period from May 2022 to April 2024. This enables the logistics provider to continue to offer its customers reliable transport capacity. DACHSER flies a widebody aircraft between Asia and Europe two days a week, transporting 33 metric tons at a time.

DACHSER’s charter program offers the company’s air freight customers additional capacity they can rely on in their planning—especially now that the trade lanes between Asia and Europe have been hit hard by the lockdown in Shanghai as well as the war in Ukraine and the accompanying sanctions. “Our customers’ demand for charter capacity remains as high as ever,” says Timo Stroh, Head of Global Air Freight at DACHSER. “That’s why we’ve created our own transport network with regular connections between Asia, Europe, and North America: to be able to offer flexible solutions here.”

An option in challenging times

Air freight is also feeling the effects that the current situation is having on the world markets. While capacity was already in short supply before the pandemic, the situation has deteriorated significantly in recent months. The closure of airspace due to the war in Ukraine makes flights about two and a half hours longer. This means they need to carry more fuel, the cost of which has gone up and the weight of which reduces the possible cargo load.

“Operating our own charter connections opens up options for capacity and gives us a degree of independence in terms of handling,” Stroh says. DACHSER’s air freight network is also closely linked to its European overland transport network, so customers benefit from end-to-end transportation of their air freight shipments between Europe and Asia. “Even in these turbulent economic times, we stand by our own charters, ensuring predictable transport capacity for our customers.”

Break Bulk Service between Frankfurt and Johannesburg

Airfreight consolidation, or break bulk, is the consolidation of several shipments from various shippers that are destined for the same port or airport overseas. DACHSER South Africa provides a bi-weekly consolidation/break bulk airfreight service between South Africa and Europe, originating in Germany at the company’s Frankfurt Gateway. This offers a cost-effective solution for smaller importers, especially through the challenges of COVID-19. “Different offices in and around Europe deliver cargo into our Frankfurt Gateway and we make use of a weekly service departing from Frankfurt each Saturday and Tuesday. We build up our own unit load devices (ULD), meaning cargo pallet, for the carriers to ship to Johannesburg”, says Detlev Duve Managing Director of DACHSER South Africa.

“Various customers can make up these units, which are moved under one Master Airway Bill. Each consignment is designated to a specific consignee, and  flown to us in South Africa. Once the units arrive in Johannesburg, we break the consolidation apart per House Airway Bill and proceed with customs clearance and other necessary documents.  We then arrange for the cargo to be delivered to our customers.” 

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.