Importer ultimately pays the price for kickbacks

The issue of kickbacks paid to suppliers, particularly on the trade lanes from the Far East and Indian subcontinent, is not going away and ultimately it’s the importer who is carrying the cost. For every cubic metre imported, NVOCCs are paying kickbacks to suppliers in India and China, sometimes in the region of US$30-40 per freight ton. If they don’t pay they don’t get the business. Groupage operators who preferred to remain unnamed told FTW that it was a huge problem, and that they were waiting for it to implode. “If you are paying a $40 kickback to the Chinese exporter, you’re going to load it onto your landside charges and the SA importer will be the ultimate loser.” And according to our sources, the problem is getting worse.