Container ship placed under quarantine

No cargo operations on the MV Montpellier voyage 2017w will be allowed in Durban for 14 days, as this containership has been ordered to quarantine by local authorities. The ship arrived in Durban port on Sunday, May 17.

Two of the crew members tested positive for Covid-19, and as a safety precaution, the vessel was ordered to remain at anchor for two weeks.

The MV Montpellier operates on Hapag-Lloyd’s Middle East India Africa Express (MIAX) service providing weekly direct service between Arabian Gulf, India, Colombo, La Reunion, South Africa and West Africa.

According to Hapag-Lloyd, the port rotation of the MV Montpellier will be adjusted. The port rotation is Jebel Ali, Mundra, Nhava Sheva, Colombo, La Reunion, Durban, Cape Town, Tema, Lagos (Tincan and Apapa), Cape Town, Durban, and Jebel Ali.

The shipping line stated that this incident is now under the control of the authorities. They wished the affected crew onboard a speedy recovery.

Country Codes for Easy Reference

The following list of Country Codes to help you know the right code when tracking your shipment. These 2-letter codes are supplied by the ISO (International Organization for Standardization). It bases its list of country names and abbreviations on the list of names published by the United Nations.

Arranged by Code Arranged by Country
Code Country Code Country
AE United Arab Emirates DZ Algeria
AS American Samoa AS American Samoa
BB Barbados BS Bahamas
BC Barbuda BH Bahrain
BD Bangladesh BD Bangladesh
BE Belgium BB Barbados
BF Burkina Faso BC Barbuda
BG Bulgaria BY Belarus (Byelorussia)
BH Bahrain BE Belgium
BI Burundi BZ Belize
BJ Benin BJ Benin
BL Bonaire BM Bermuda
BM Bermuda BO Bolivia
BN Brunei BL Bonaire
BO Bolivia BW Botswana
BR Brazil BR Brazil
BS Bahamas VG British Virgin Islands
BW Botswana BN Brunei
BY Belarus (Byelorussia) BG Bulgaria
BZ Belize BF Burkina Faso
CA Canada BI Burundi
CB Curacao KH Cambodia
CC Cocos Islands CM Cameroon
CE Canary Islands CA Canada
CF Central African Republic CE Canary Islands
CG Congo CV Cape Verde
CH Switzerland KY Cayman Islands
CI Ivory Coast CF Central African Republic
CK Cook Islands TD Chad
CL Chile NN Channel Islands
CM Cameroon CL Chile
CN China CN China
CO Colombia CX Christmas Island
CR Costa Rica CC Cocos Islands
CU Cuba CO Colombia
CV Cape Verde CG Congo
CX Christmas Island CK Cook Islands
CY Cyprus CR Costa Rica
CZ Czech Republic HR Croatia
DE Germany CU Cuba
DJ Djibouti CB Curacao
DK Denmark CY Cyprus
DM Dominica CZ Czech Republic
DO Dominican Republic DK Denmark
DZ Algeria DJ Djibouti
EC Ecuador DM Dominica
EE Estonia DO Dominican Republic
EG Egypt EC Ecuador
EN England EG Egypt
ER Eritrea SV El Salvador
ES Spain EN England
ET Ethiopia GQ Equitorial Guinea
EU St. Eustatius ER Eritrea
FI Finland EE Estonia
FJ Fiji ET Ethiopia
FM Kosrae FO Faeroe Islands
FM Micronesia FJ Fiji
FM Ponape FI Finland
FO Faeroe Islands FR France
FR France GF French Guiana
GA Gabon PF French Polynesia
GB United Kingdom GA Gabon
GD Grenada GM Gambia
GF French Guiana DE Germany
GH Ghana GH Ghana
GI Gibraltar GI Gibraltar
GL Greenland GR Greece
GM Gambia GL Greenland
GN Guinean – Bissau GD Grenada
GP Guadeloupe GP Guadeloupe
GQ Equitorial Guinea GU Guam
GR Greece GT Guatemala
GT Guatemala GW Guinea
GU Guam GN Guinean – Bissau
GW Guinea GY Guyana
GY Guyana HT Haiti
HK Hong Kong HO Holland
HN Honduras HN Honduras
HO Holland HK Hong Kong
HR Croatia HU Hungary
HT Haiti IS Iceland
HU Hungary IN India
ID Indonesia ID Indonesia
IE Ireland IR Iran
IL Israel IE Ireland
IN India IL Israel
IR Iran IT Italy
IS Iceland CI Ivory Coast
IT Italy JM Jamaica
JM Jamaica JP Japan
JO Jordan JO Jordan
JP Japan KZ Kazakhstan
KE Kenya KE Kenya
KH Cambodia KI Kiribati
KI Kiribati KR Korea, South
KN St. Kitts FM Kosrae
KR Korea, South KW Kuwait
KW Kuwait LA Laos
KY Cayman Islands LV Latvia
KZ Kazakhstan LB Lebanon
LA Laos LS Lesotho
LB Lebanon LR Liberia
LC St. Lucia LI Liechtenstein
LI Liechtenstein LT Lithuania
LK Sri Lanka LU Luxembourg
LR Liberia MO Macau
LS Lesotho MG Madagasca
LT Lithuania ME Madeira
LU Luxembourg MW Malawi
LV Latvia MY Malaysia
MA Morocco MV Maldives
MB St. Marten ML Mali
MC Monaco MT Malta
ME Madeira MH Marshall Islands
MG Madagasca MQ Martinique
MH Marshall Islands MR Mauritania
ML Mali MU Mauritius
MM Myanmar (Burma) MX Mexico
MO Macau FM Micronesia
MP Northern Mariana Islands MC Monaco
MQ Martinique MS Montserrat
MR Mauritania MA Morocco
MS Montserrat MZ Mozambique
MT Malta MM Myanmar (Burma)
MU Mauritius NA Namibia
MV Maldives NP Nepal
MW Malawi NL Netherlands
MX Mexico NV Nevis
MY Malaysia NC New Caledonia
MZ Mozambique NZ New Zealand
NA Namibia NI Nicaragua
NB Northern Ireland NE Niger
NC New Caledonia NG Nigeria
NE Niger NU Niue
NF Norfolk Island NF Norfolk Island
NG Nigeria NB Northern Ireland
NI Nicaragua MP Northern Mariana Islands
NL Netherlands NO Norway
NN Channel Islands OM Oman
NO Norway PK Pakistan
NP Nepal PW Palau
NT St. Barthelemy PA Panama
NU Niue PG Papua New Guinea
NV Nevis PY Paraguay
NZ New Zealand PE Peru
OM Oman PH Philippines
PA Panama PL Poland
PE Peru FM Ponape
PF French Polynesia PT Portugal
PG Papua New Guinea PR Puerto Rico
PH Philippines QA Qatar
PK Pakistan RE Reunio
PL Poland RO Romania
PR Puerto Rico RT Rota
PT Portugal RU Russia
PW Palau RW Rwanda
PY Paraguay SS Saba
QA Qatar SP Saipan
RE Reunio SA Saudi Arabia
RO Romania SF Scotland
RT Rota SN Senegal
RU Russia SC Seychelles
RW Rwanda SL Sierra Leone
SA Saudi Arabia SG Singapore
SB Solomon Islands SK Slovak Republic
SC Seychelles SI Slovenia
SD Sudan SB Solomon Islands
SE Swede ZA South Africa
SF Scotland ES Spain
SG Singapore LK Sri Lanka
SI Slovenia NT St. Barthelemy
SK Slovak Republic SW St. Christopher
SL Sierra Leone SX St. Croix
SN Senegal EU St. Eustatius
SP Saipan UV St. John
SR Suriname KN St. Kitts
SS Saba LC St. Lucia
SV El Salvador MB St. Marten
SW St. Christopher TB St. Martin
SX St. Croix VL St. Thomas
SZ Swaziland VC St. Vincent
TA Tahiti SD Sudan
TB St. Martin SR Suriname
TC Turks and Caicos SZ Swaziland
TD Chad SE Swede
TG Togo CH Switzerland
TH Thailand TA Tahiti
TI Tinian TW Taiwan
TL Tortola TZ Tanzania
TN Tunisia TH Thailand
TO Tonga TI Tinian
TR Turkey TG Togo
TT Trinidad (Tobago) TO Tonga
TU Truk TL Tortola
TV Tuvala TT Trinidad (Tobago)
TW Taiwan TU Truk
TZ Tanzania TN Tunisia
UA Ukraine TR Turkey
UG Uganda TC Turks and Caicos
UI Union Island TV Tuvala
US United States VI U.S. Virgin Islands
UV St. John UG Uganda
UY Uruguay UA Ukraine
UZ Uzbekistan UI Union Island
VC St. Vincent AE United Arab Emirates
VE Venezuela GB United Kingdom
VG British Virgin Islands US United States
VI U.S. Virgin Islands UY Uruguay
VL St. Thomas UZ Uzbekistan
VN Vietnam VU Vanuatu
VR Virgin Gorda VE Venezuela
VU Vanuatu VN Vietnam
WF Wallis & Futuna Islands VR Virgin Gorda
WK Wake Island WK Wake Island
WL Wales WL Wales
WS Western Samoa WF Wallis & Futuna Islands
YA Yap WS Western Samoa
YE Yemen YA Yap
ZA South Africa YE Yemen
ZM Zambia ZR Zaine
ZR Zaine ZM Zambia
ZW Zimbabwe ZW Zimbabwe

Do I have to pay VAT on exports?

One of our clients is based overseas and was told that even though his business was not operating in South Africa, he had to pay VAT on exports as his shipping terms were Ex Works.

We looked into the matter and found the following:

“As an indirect exporter, you are not obliged to pay VAT on exports.”

SARS VAT guide

An indirect export refers to a situation where goods are exported by the recipient (being a “qualifying purchaser” as defined) and that person removes or arranges for the removal and transport of movable goods to an address in an export country.

A supplier may elect to apply the zero rate on the supply of movable goods to a qualifying purchaser or registered vendor if such goods were delivered to either the port authority, master of the ship, a container operator, the pilot of an aircraft, or were brought within the control area of the airport authority, are situated at the designated harbour or airport and are destined to be exported from the RSA.

VAT at standard or zero rate?

Indirect exports are regulated by the export regulations published as Government Notice R316 on 2 May 2014 (in Government Gazette 37580) (the Export Regulations).123

  • If an indirect export is subject to VAT at the standard rate the qualifying purchaser may claim a refund from the VAT Refund Administrator (Pty) Ltd (the VRA)124 as set out in the Export Regulations.
  • Alternatively, the vendor may elect to zero-rate the supply of the movable goods, subject to certain requirements set out in the Export Regulations. See 12.1.2 of the SARS VAT Guide for more details.

 

12.1.1 of SARS VAT guide stipulates that:

Indirect exports The Export Regulations set out the specific procedures applicable to goods exported indirectly. In the case of indirect exports, the supplier will charge VAT at the standard rate, unless the supplier has elected to apply the zero rate under Part Two of the Export Regulations.

Part Two – Section A: 

This Part of the Export Regulations provides for a supplier to elect to supply movable goods to a qualifying purchaser at the zero-rate where the goods are initially delivered to a harbour, an airport, or are supplied by means of a pipeline or electrical transmission line in the RSA before being exported. A supplier who elects to apply the zero-rate as provided for in Part Two – Section A of the Export Regulations must obtain the relevant documentary proof as contemplated in the said Part to substantiate the application of the zero rate.

We did it!

Our client called us with an unusual request. He has been pursuing a client for months, trying to sell a South African product to a company in Australia who supplies equipment to the mining industry. Negotiations were unsuccessful last year, but he finally managed to get the right product at the right price. His client in Australia insisted on delivery by the 8th of August, but the manufacturer in South Africa still needed more time for manufacturing. We worked closely with our sister company, Red Nav in Perth, and looked at every possible scenario. Timing was of the essence. Unfortunately, most vessels required a transit time of about thirty days between the port of Durban, South Africa, and the port of Fremantle in Australia. The client was reluctant to request a later delivery date from the buyer, and it seemed possible that once again his negotiations were not going to be successful.

Then experience from the Sebenza/RedNav team kicked in! There was another option.

After a few calls we found a vessel which offered a direct sailing that only needed 16 days transit time. We looked at the estimated days of departure and arrival and knew that this was our solution! The manufacturer worked until the last possible moment before the trucking company pulled through his gates. The driver collected the goods at close of business and drove through the night to ensure that our cargo was handed in before the stacks were closed. The vessel departed as planned, and we enjoyed a mini celebration, but then … disaster struck! Inclement weather at sea caused the arrival date to be pushed out! The original arrival date was 2nd August, which became the 3rd, and then the 4th! As we kept a watchful eye on the weather report, a mini tornado hit the coastal city of Perth on the afternoon of the 4th August! Luckily it hit a few kilometres north of the port of Fremantle and it did delay the arrival time too much. The vessel eventually docked at 3am on the morning of the 6th August, giving us one day for the vessel to unpack. The cargo became available on the morning of 7th August, and we delivered one day earlier than the cut-off date. A relieved client waited at the delivery address of the buyer to welcome the first of what he (and we) hope to be many more shipments. We feel confident in the knowledge that we went over and above our duty to deliver the best possible service to our client at an affordable rate. This is what shipping is about.

We are going to Bahrain!

Agents belonging to the esteemed PPL network of freight agents meet bi-annually at different venues. The next event will be held during October in Bahrain, and Suzette will be officially representing Sebenza Freight Services for the first time!

E-mails of welcome from countries like China, Pakistan, Scandinavia, Canada and the United States immediately poured in after the announcement was made. Agents from more than a hundred countries belong to this prestigious network of independent professional project forwarders and related logistic and shipping service providers.

The conference will be held at the Sofitel Bahrain Zallaz Thalassa Sea & Spa, which overlooks the pristine beaches of Zallaq and the Arabian Gulf on Bahrains’ west coast. One on one meetings are held over three days with fellow freight forwarders to exchange enquiries and build relationships.

When visa requirements are changed

When Australia changed their aged parent visa recently, some of the elderly parents of Australian residents had to return to their country of birth. The new Aged Parent visa (subclass 804) allowed parents of a settled Australian citizen, permanent resident or eligible New Zealand citizen to live in Australia permanently, but waiting times for this visa to be granted can take up to thirty years! Our clients in Sydney was not comfortable with the excessive waiting time, and they did not want to add the uncertainty of a visa status to concerns about the future care of their elderly mother.

They managed to find an old age care facility in South Africa where they knew that their mother would receive excellent care, but they were worried about how she would react to such a big change at this late stage of her life. They knew that dementia was beginning to set in and they were advised by medical professionals that their mother would cope better in her new environment if she could take some of her own belongings with her.

Costs were of course a concern, but also timing.

We planned the move to the n th degree. Her goods were packed into boxes by the client and was sent as an air freight shipment to be customs cleared and delivered to one of the major cities in South Africa.

Our clients were ecstatic with the quality of service they had received from the combined team of Red Nav/Sebenza Freight Services. They were kept informed every step of the way and could arrange for extra hands to assist with the receipt and unpacking of the shipment on the day of delivery.

The elderly mother settled in with ease. She is now surrounded with her familiar belongings and is receiving outstanding care. Our client installed a large TV screen in her new house and taught her how to use Skype, so that they can regularly talk to her on video call.

Note: a stock image was used

In desperate need

Our clients contacted us in desperate need. They received death threats in South Africa and needed to migrate to another country as soon as possible. The situation became very worrying as threats were made not only against the adults, but also against the small children. They found refuge in Australia, but that meant that their life savings were worth much less, as the South African Rand traded at almost ZAR 10 to AUD 1. We had to find the cheapest possible way to move their personal belongings from South Africa to Australia. It took lots of planning, research and serious negotiations from our side, and heaps of patience from the clients’ side, but we found the perfect solution. We managed to ship their goods at a rock bottom price and our clients could focus on settling in a new country in stead of worrying about their financial situation. Today they are very grateful new Australians, adding value to their new country of residence.

Meet our new MD

We are happy to announce that Suzette van der Heijden has agreed to step in as Managing Director for Sebenza Freight Service. Suzette has more than 25 years’ experience in the freight industry. She obtained a B Com degree from the Randse Afrikaanse Universiteit (now the University of Johannesburg) and has completed several certificates and diplomas since. She is not only an experienced customs broker, but also an experienced air and sea freight forwarder. We look forward to achieving great things with our new Managing Director!

Sad News

Our beloved Managing Director, Debbie Mouton, sadly passed away on 26 May 2018. Debbie suffered from lung cancer and fought bravely against this terrible disease for more than five years. She will be deeply missed. Debbie was highly regarded for her warm personality and knowledge of the logistics industry. She is survived by her husband, Hannes, and her two sons, Conrad and Dwayne.

A memorial service will be held at the Mosaic church in Fairlands, Randburg on 4 June 2018 from 10am to 11am. An informal gathering will then take place at Debbie’s favourite restaurant, Piccolino’s in Fourways.

A risk to be aware of

There are many risks involved with international shipping, but one often overlooked is the risk when something happens to the ship which is carrying your cargo. If you have taken out the correct marine insurance, it is a matter of contacting the insurer to sort out the claim. If you have decided to save on the relatively small premium for marine insurance, you may be facing a severe claim, especially if the ship owners declared a condition of ‘General Average’.

When an emergency at sea arises and crew members have little time to respond, a declaration of General Average allows them to act immediately. The vessel may have been involved in a collision at sea, or water may be leaking into the engine room. Sometimes the crew may see the only solution to jettison cargo to keep the vessel afloat.

Every entity with cargo on board a vessel when the condition of General Average is declared, is obliged to contribute towards the cost of salvaging the vessel or the loss of cargo, even if their loss is minimal or if their shipment is intact. The well-known insurer Lloyds of London describes this condition as ‘a loss that arises from the reasonable sacrifice at a time of peril of any part of a ship or its cargo for the purpose of preserving the ship and the remainder of its cargo together with any expenditure made of the same purpose’.

General Average also applies when a stricken vessel is towed into port. Insurance generally applies if the loss was incurred to avoid an insured peril. An average adjuster calculates the value of every shipment, and every interested party is obliged to contribute towards the general average loss or expenditure proportionately.

The York-Antwerp Rules (YAR) originally codified the law in 1890, but interpretations of the law varied, and a more recent set of Rules was drawn up in 2004. When the Rules are incorporated into the contract, they will govern the adjustment of general average, irrespective of the relevant law and jurisdiction applicable to international waters or the high seas. Piracy ransoms can also fall within the scope of general average, but the response of insurers will depend on the debate over ransom legality.

When ‘all risk’ or ‘free of particular average (FPA)’ is not in place, cargo owners are forced to post a cash deposit with the vessel owner to have their cargo released. This deposit can be tied up for two or more years until the general average adjustment is completed.

An explosion in the main engine of the container ship Hanjin Osaka on 8 January 2012 led the owners, MS Pelapas GmbH & Co. KG, to declare a condition of General Average. The vessel sailed from Pusan, Korea to ports in the United States with more than 2 000 containers on board. After initial attempts to repair the ship at sea, it was decided to tow the vessel to a port of refuge. Twenty-eight days after the explosion the damaged vessel arrived at the Anchorage of Hakodate, a small island of Japan off the coast of Hokkaido.  Considerable costs were incurred by the shipowners to preserve the ‘common maritime adventure’, and a cash deposit of 3% of the commercial value of the cargo had to be lodged with the port agents where cargo was not insured.