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‘Shipping lines increasingly encroaching on forwarders’ territory’

31 Oct 2005 - by Staff reporter
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LEONARD NEILL AN ADVANCED IT system which Röhlig-Grindrod installed at the start of this year has made major improvements to the company’s operations. Its value is underscored in the light of the challenges facing the freight forwarding industry, says KwazuluNatal’s Durban seafreight and East London branch manager Denver Wright. “This system has brought us far closer to introducing the best in business intelligence methods,” he says. “We are now talking directly to the customer while dealing instantly with customs compliance regulations. With the type of logistics service available, outstanding tracking facilities and our worldwide contacts, I believe we are ahead of the field in this respect.” But, says Wright, there are growing challenges which the industry must face. The increased intrusion of shipping lines into previously land-based operations is disconcerting. More and more are taking control of business outside of their normal field of service. It’s a monopolistic tendency, and we find that we are now required to deal with some of the lines in a single operation, whereby they handle the arrival, offloading and distribution of cargo. Sure, it saves time, but it removes our own right to deal with the land transporters and distributors, which has always given the forwarder a greater control of the situation. “Then there is the continuing involvement of customs and SARS in coordinating changes to regulations. The anticipated impact of pending changes in the Customs Act 2006 could be dramatic. We are now awaiting the final draft of this, and it is something we will have to scrutinise closely. “The slow pace of development of the national transport system continues to be a major source of concern, and the gap that still exists between shipping lines and port authorities never seems to close. These two operations need to be seen working far closer together.”

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