Security regulations compound difficulties

DEALING WITH the USA has never been simple, but post 9/11 regulations have compounded the difficulties, says Kempton Park-based World Groupage Services MD Andrew Daley. “Apart from challenges raised by the sheer size of the country, its massive domestic economy, its internal focus and unique IMCO terms and regulations, post 9/11 we have regulations to curb drug trafficking and money laundering as well as anti-terrorist measures and anti-terror funding. “Issues like AES filing and known shipper status have therefore increased the responsibilities of the forwarder or NVOCC and can result in possible stoppages or delays if one takes one’s eye off the ball for a second,” says Daley. Issues around infrastructure make additional demands on forwarders. “The railways for instance have failed to keep up with the times. Still owned and operated privately, we have seen delays in interchange of rolling stock from one carrier to another and lack of available equipment during peak times. “The increase in fuel prices has also allowed the railways to increase its prices in competition with the road hauliers. None of these aspects have assisted either importer or exporter.” Which is why excellent communications and tracking are vital service elements when choosing an NVOCC, in his view. “The carrier needs to be constantly on the lookout for cost reductions in the USA, in freight, and in SA landside movement, and must come up with creative solutions to problems like congestion in Durban, shortages of rolling stock and gantry failure.” World Groupage Services has operated with Carotrans out of the USA for the past 13 years. Last year the company moved in excess of 2500 TEUs out of the USA of which almost 600 were groupage boxes, says Daley. “Through FCL (full container load) contracts with the lines, the company is able to offer freight rates well below tariff.”