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IMO 2020 regulations are making ships cleaner

New environmental guidelines from the International Maritime Organization for global shipping traffic will take effect in January 2020. Read on to find out what it’s all about.

Striving for security of supply

In the recent past, supply chains have proven increasingly fragile and at risk. The reasons are manifold. To counteract this, companies are taking far-reaching measures. What these look like and how DACHSER can manage complex supply chains against this backdrop are the thoughts of CEO Burkhard Eling.

The past 18 months have laid bare some of the weak points in the global economic system: just-in-time with lean warehousing, the focus on individual manufacturing sites in Asia, and the one-sided concern with efficiency and costs—all relied on structures that proved too fragile and too susceptible to disruption.

Companies have now analyzed their supply chains and are taking concrete action, such as expanding their warehouse capacity in Europe and the US, decentralizing production, and obtaining raw materials and intermediate products from multiple suppliers. In short, they are striving for security of supply. But that does not imply a shift to de-globalization. Supply chains will remain global, but they will become more complex.

Finding solutions even under difficult conditions

At DACHSER, we have no trouble managing complex supply chains; in fact, it’s our core expertise. We’re able to offer solutions that work even under difficult circumstances, which explains our continued success in the first six months of 2022. But prospects are dim: enormous cost increases in almost all areas will stifle demand and, as a consequence, significantly slow the current growth momentum.

We are already hard at work preparing for this scenario. For instance, we’re investing in digitalization and automation to make supply chains more efficient and more transparent. But we’re also investing in the people at DACHSER. After all, digital skills at all levels of the company will decide our success in the future.

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.

The new DACHSER magazine is here!

DACHSER’s European overland transport network has expanded over the years. The secret has always been putting the right pieces of the puzzle in the right places to complete the overall picture.