Security-related costs must be factored into rates

IT IS crucial that local agents/ importers alert their overseas partners/suppliers to the high risk of cargo movement in SA – and persuade them to incorporate the cost of security measures into the price and transport cost of theft-sensitive goods, according to Richard Poulton, director of sales and marketing at Guardforce International. “It is a bit of a hot potato if cargo arrives in this country and the receiver is suddenly, and unexpectedly, faced with the cost of security measures,” he said. “It would be better if this matter was discussed beforehand with the overseas partner/supplier, and the cost included at the point of origin.” Poulton told FTW that he was surprised at the reluctance of people to take measures to secure products which are liable to theft. “We handle gold, platinum, banknotes and the like,” he said, “and nobody questions the need to protect these items.” But it can be a different case when other vulnerable cargoes – like cell-phones and cameras – are being shipped. These are also high-value products, easy to fence in the local market, and tend to be stolen if not properly secured. “What we stress to our multinational customers is for them to ensure that their foreign branches are aware of the need for security in SA,” said Poulton. “It’s also a lower cost at this end if the measures are paid for in a foreign currency.” This has been recognised by a number of major foreign airlines – like Lufthansa and KLM – and also SAA. “They,” said Poulton, “automatically sell security as a branded product.” The only cost in such an exercise that is a variable factor is the possible need for storage, he added. For example, when customs put astop on a shipment. “We’ve been trying to get major foreign companies informed of our services and charges,” Poulton told FTW. “These charges can be factored-in at the beginning, and our costs can often be off-set with a reduction in insurance cost.”