Innotec Solutions Africa Pty Ltd

Innotec Solutions Africa Pty Ltd We are a level 1 BEE company that offers Sea Freight Services, Air Freight Services, Road Freight S

26/02/2021

Air Freight & Sea Freight News

Air Freight
CMA CGM Air Cargo’s new airfreight service, the first Airbus A330-200F takes off from Liege (Belgium) to Chicago (USA) set to launch on the 8 March 2021. The Airline will operate from Liege Belgium. This will definitely assist Ceva Logistics with better rates as they will obtain blocked space on this route.

The airline industry is expected to remain cash negative throughout 2021 and only show a positive cash flow in 2022. The airlines could burn up to usd95 billon for this year alone due to the restrictions still in place.

Sea Freight
Due to heavy winds experienced at Cape Town, the shipping lines will once again omit calling this port and is becoming a norm. Our importers and exporters have been affected this year with such decisions. The shipping lines reasoning is that that have to maintain their vessel schedules on the south bound voyage thus them omitting Cape Town. More than 14 vessels has omitted calling Cape Town for the month of February alone. This has to change soon otherwise is going to have a negative impact on the economy.

15/02/2021

Freight Industry evolving

Over the last twenty years we have seen many changes in the freight industry from just clearing and forwarding of the goods. Freight companies such as ourselves has under gone many changes such as the following: Paying for the actually goods, Trade finance, pick n packing of goods, distribution of goods, warehousing and reverse deliveries. Now the vessel operators are following suit e.g. Maersk shipping services started with only carrying containers but are now offering offering a complete end to end solutions with their new division called Damco, CMA-CGM a vessel carrier bought of a clearing company called Ceva Logistics and now opening their own air freight division the company is buying four 60-tonne-payload Airbus A330-200F freighter aircraft, which came into service between 2014 and 2016. In the near future we may even see Airlines actually offering a complete end to end solutions similar to the vessel owners.

05/02/2021

Freight News at the end of January 2021

January done and dusted and what has been achieved in the freight industry.

The last two weeks of January 2021 of air freight cargo saw a sharp increase in loads as much as 10-15% up compared to a similar period last year. Overall Air cargo in January 2020 is -18% down compared to January 2020. Air Freight rates has increase over the last two weeks of January 2020 as well. Emirates airline has be extended their passenger services until 28 February.

Various borders post surrounding South Africa was heavily congested during the December period which has now eased down. The emphasis now shifts to improving the digital trade and improving technology thus will improve the efficiency of the supply chain between countries.

Sea Freight has seen a rise with LCL consignments due to importers still running their business lean. With the Chinese new year to due to start, Chinese Exporters had to rush to complete pending orders and was under immense pressure to do so. As their Government wanting workers to perform test and remain at the current city until a cleared test result from the COVID-19 virus to avoid further spread.

22/01/2021

Air Freight Services- Passenger Flights to the Netherland shall be banned effective as of 23 January until the 9th February. The ban will be applicable to the following countries: South Africa, UK, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, French Guyana, Guyana, Panama, Paraguay, Peru, Suriname, Uruguay, and Venezuela. Netherlands goes under a forced month lock down.

Export containers from South Africa- Great news for Citrus exports from South Africa into USA. In the past exports was only allowed to certain ports into USA. Exports will be allowed to any USA port that has cold storage facilities, including important ports of Charleston, South Carolina and Savannah, Georgia. SA exports would now reach more importers/consumers at USA.

Container Lost at Sea- On the 30th November 2020, One Line Express lost about 1816 containers overboard on the vessel the One Apus. On the 16 January 2021 the Maersk Eseen lost about 750 containers while on route from Xiamen in China to Los Angeles on the US west coast which was due to bad weather conditions. It is very critical for the buyers/importers have marine insurance for their goods in containers while in transit from port to port otherwise they will suffer huge losses as the shipping companies will not compensate for the containers that went over board. Shipping lines does repudiate any claims or such by standing firm as per their clauses declared at the back of the Bills of Ladings.

13/01/2021

The Effects of COVID19 to the freight industry -

BAF
Importers and Exporters should brace themselves for further Bunker Adjustment Factor (BAF - fuel increases). Some Vessel carriers may increase their BAF on a month to month basis due to the switch over to the Very Low-Sulphur Fuel Oil Prices (VLSFO). At the beginning of the pandemic ship owners switched from IMO 2020 {International Maritime Organization, On 1 January 2020, the International Maritime Organization (IMO) implemented a new regulation for a 0.50% global sulphur cap for marine fuels) to Very Low-Sulphur Fuel Oil (VLSFO) {This type of marine fuel contains less sulphur and therefore complies with the IMO 2020 regulations.}

LCL increase
The increase of air freight cost, Fuel prices, shortage of containers, shipping companies reducing their fleet on certain sea voyages has influenced importers/ exporters with their method of shipping their goods in/out of South Africa. Importers & exporters has opted with a method of shipping their goods via LCL (Less than container loads). With importers / exporters shipping goods via LCL it means an increase in cash flow, reduction of freight cost when compared to air freight, freeing up warehouse space, improvements of earlier shipping dates thus improves payments from their buyers, insurance premiums and forex rate fluctuations which is a win situations for the importer/ exporter.

E-commerce
The pandemic has resulted in business changing more to the route of E-commerce. Online shopping has increased & client meetings done via zoom/ micro-soft teams/ whatsapp.

13/01/2021

Trade between DRC & USA- Great news for trade between DRC & USA as the AGOA (African Growth and Opportunity Act) agreement has been reinstated. Almost 1800 additional products can enter the USA with it being duty free. AGOA agreement enables an African country to increase their exports at a competitive landing cost to the USA importers thus increasing trade. Proper documentation such as commercial invoices must be stamped with the AGOA stamp and SAD500 declared to be shipped under AGOA agreement are very imperative in order for the USA importer to qualify for the Duty Free rebate.

05/01/2021

Air Freight with SAA- BRP has cancelled all existing leases leaving SAA with a fleet of only 9 aircrafts. However SAA plans are to ramp up to 19 aircrafts between March and November 2020. The international routes are Washington (via Accra), New York, Perth, Frankfurt and London. Regionally, 19 of SAA’s 20 routes will be retained, with only Abidjan via Accra being cancelled. SAA will only operate on the following routes domestically; Cape Town, Durban and Port Elizabeth - East London route being cancelled.

05/01/2021

The Mozambique’s Ressano Garcia Border Post still remains heavily congested with trucks and other vehicles backing up to about +-14 km. Clearing agents are currently experiencing huge delays with clearing cargo.

Thousands of people travelling between Zimbabwe & South Africa are trying to cross over, are causing huge delays and the cause being due to South African Health Authorities thus all stringent COVD-19 had to be stopped. The virus now considered a super spreader this could result in a huge human crisis.

11/12/2020

Gearing up for the new year 2021- It has been a roller coaster of the year 2020 in the Freight Industry. A down period due to result of COVID19 and then a up turn after that but again down turn with the Truck arsons throughout South Africa. With 2021 beckoning business owners are hoping exports and imports to increase and stabilize. Importers are still set to trend in a cautious manner entering the new year but business are projected to increase. Exports took a -12% drop during 2020 but still remains a gateway into Africa and is the positive way to go forward into the new year 2021. Smart thinking and new business strategies are required for the new year for importers & exporters to have a positive impact on their business.

01/12/2020

The Zambian Trust Association has expressed their concerns about firebombing attacks occurring in South Africa. Presumable the attacks on South Africa are due to the employment of foreign national transporters. ZTA has issued threats of violence if this is to continue.

There has been about 34 arson attacks on trucks since 19 November 2020 and claiming the first fatality. These attacks on trucks are going to have an increase in freight cost as the insurance premiums are going to increase. The burning of the trucks are going to stop the growth of the economy although the freight industry has seen a positive growth after the impact of the COVID-19 virus.

10/07/2020

Truck violence on rise- All Truck Drivers’ Foundation (ATDF) and the SA National Cargo Transport Association (Sancatra) seems to be encouraging and influencing people to participate in protest action or ‘national shutdown’ against the employment of foreign nationals in the road freight and logistics industry. Over the last few days we have seen an increase in truck violence. Fesarta released the following message they had received: “Attention all SADC truck drivers – South Africa must fall now.
"Zambia, Mozambique, Zimbabwe, DRC, Nigeria, Tanzania, Swaziland – from Friday, 10 July, no South African-registered trucks are to cross any of these countries.” Our neighbouring countries want all the borders to be blocked to South Africa. They are wanting all South African Drivers working in cross-borders to go back to South Africa.

The long distance truck drivers are now fearing their lives. With a tough economy and a decision to keep the food on the table, drivers are forced to stay on the road. We may use the Army for the Pandemic but not for the transport issues on hand as this is not a national security issue yet.

If no resolution is made soon this will have a further negative impact on our economy.

04/06/2020

IMPORTERS face huge charges - "South African businesses are faced with a huge bill, estimated at R1.4-billion, for storage and demurrage costs accumulated during the 27 days of Level 5 lock down, as more than 20 000 containers piled up in storage facilities. Shipping line charges for delayed containers are derived from two main areas: storage (or overstay) and demurrage (or detention)." As per Saaff CEO David Logan.

Address

297 Trush Avenue
Randburg

Opening Hours

Monday 08:00 - 17:00
Tuesday 08:00 - 17:00
Wednesday 08:00 - 17:00
Thursday 08:00 - 17:00
Friday 08:00 - 17:00

Telephone

+27796754105

Website

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