A year after redesigning its road freight department, neutral NVOCC CFR Freight has developed a range of products – each catering for separate pockets within the market. According to Hilton Tait, CFR road freight manager, new staff were brought on board to assist in the development of the business while in-country agents were appointed to act as de-group and release agents and also to do local delivered at place (DAP) distribution when required. This, said Tait,
had allowed the company to significantly increase its offerings to clients which now included delivered at place (DAP), delivered duty unpaid (DDU), and in some cases delivered duty paid (DDP) options. Tait told FTW that CFR Freight had consolidated both transit and domestic cargo in order to build its own over-border consolidation services. “These have been running weekly to both Zambia and Zimbabwe since August last year,” he said. “We are working on similar solutions for own consolidations to other areas and to move away from the co-load practices we have used in the past.”
In addition to the consolidation business the company is working in conjunction with ZacPak in Durban. “FCLs are unpacked and cargo is moved breakbulk to destination,” said Tait. “This service eliminates the need for over-border deposits to be paid to carriers, reduces the risk of late turn-in fees, and does away with empty turnin costs. A lot of agents are looking at this as a workable solution to reduce costs and eliminate risk.” Commenting on the challenges, Tait said delays and red tape at borders continued to impact the road freight industry. “The two most challenging routes are currently the DRC and Zimbabwe, but we have developed systems to limit the time at borders,” he said. “Trade to Zimbabwe is currently an area of concern where we have seen a major
decline in volumes due to the drop in trade caused by importers’ inability to pay for imports. Shippers in South Africa have commented that they want to do business with Zimbabwe but cannot take the risk of nonpayment by consignees.” On the positive side, he said, trade with Zimbabwe was cyclical and an upturn was inevitable as
local manufacturing was under pressure and would result in imports from South Africa increasing.
CAPTION: The two most challenging routes are currently the DRC and Zimbabwe, but we have developed systems to limit the time at borders. – Hilton Tait
