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Non-tariff barriers continue to weigh on bottom line

23 Apr 2020 - by Liesl Venter
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Tariffs, fees and ad hoc charges are driving up the costs of cross-border cargo movements.According to Gavin Kelly, chairman of the Road Freight Association (RFA), talks with the Cross-Border Road Transport Agency (C-BRTA) to address the issue and find solutions to the rising costs are ongoing.

“Our truck drivers are often at the mercy of the authorities in the countries where they are transporting cargo and are expected to pay fees and tariffs or face the cargo and truck being confiscated,” said Kelly.

“We do have connections with trucking associations in many countries in an effort to address these situations as and when they arise, but clearly we don’t have the same links in our cross-border jurisdictions that we have in our home country. The same would be true for truckers crossing into South Africa.”He said often there was no official schedule for the fees and tariffs being charged.

“It is dependent on the local authorities of any particular region or town. Operators often have no other choice but to pay.”He said whether it was road tolls or town-entry tolls, trucking was often targeted for ad hoc payments.“In the case of a town entry the trucker has no choice as more often than not there is no bypass and it is the only way to get to a destination.

The only choice other than paying would be to turn around and go home with the cargo.”These non-tariff barriers are one of the biggest obstacles for traders in the region, significantly affecting the cost of transport.“A total of 40% of all operational cost is fuel. Labour is also quite expensive,” said Kelly. “In these tough economic times any additional cost cannot be afforded."

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