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Trade Winds weekly update volume 12

Transport violence, following growing concerns over the past week of a possible strike, violence has rocked the transport industry, mainly the focus is on local hauliers that a sporting foreign drivers. On Monday the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) managed to win a court interdict preventing the All Truck Drivers’ Foundation (ATDF) and the SA National Cargo Transport Association (Sancatra) from fomenting xenophobic violence.

A statement issued by the bargaining council’s national secretary, Musa Ndlovu, said the court had granted the NBCRFLI an interdict against the ATDF and Sancatra, preventing them from “organising, encouraging and inciting any other person to participate in protest action or ‘national shutdown’ against the employment of foreign nationals in the road freight and logistics industry on 7 July 2020 or at any other time thereafter”.

However, this unfortunately did not deter some protesters as quite a number of vehicles have been attacked and torched in the process, there were a few “hotspots” in Johannesburg that resulted in freight companies closing their depots.  

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.”

The message calls for drivers from neighbouring countries to block borders into South Africa as well as requesting South African drivers working cross-border to leave.

“Go back to your country and join Sipho Zungu (ATDF leader) and all other South African hooligans.”

Beitbridge border closure, Beitbridge was closed as of noon yesterday due to a positive COVID case. Initially it was only on the SA side offices that had closed and were being fumigated, any truck that was on SA side or in queue to cross could not move further, today rumours were rife that the border post will be closed for up to 72hours so that a complete fumigation can take place.

Officials are demanding that they be tested prior to returning to work, SARS and management are in talks to come to an agreement. We can confirm that drivers are not being processed at the moment, and no trucks are moving.

Cape Town Port running hot, with the latest —– that took place over the past week at Cape Town Port, the port is now seeing great success from these implementations, so much that the Covid-related cargo build-up could soon be a thing of the past.

Speaking during a webinar, Terry Gale who chairs the Exporters’ Club of the Western Cape (ECWC) said industry reckoned that by the end of the month the backlog should be overcome.

“When the lockdown started we used to have 15-16 vessels at anchorage, with delays lasting for 14-15 days. Some of the delays were a TBA-situation (to be announced).”

Now, with Transnet and private sector freight representatives meeting twice weekly to deliver solutions for slow processing, the port could soon receive direct calls from the same shipping lines who only a few weeks ago started bypassing the port, electing instead to tranship cargo destined for Cape Town at Port Elizabeth.

“We have six gangs – the teams required to operate specialised assets – where we started off with one. Transnet is also training new teams to come on board.”

As for the berths, two were fully operational, meaning imports and exports could move a lot more quickly, and expectations were that a third could soon be back on line.” Said Gale.

More meetings with public-private stakeholders are still required to fully co-ordinate the way forward.

Metals and Engineering sector get the nod, The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has voiced strong support for government’s decision to support the sector which has taken huge strain as an increased global demand and high price hikes affected both raw materials and finished products due to the COVID pandemic.

There is a global shortage of affordable, good-quality scrap metal amid a downturn in global manufacturing as the worldwide lockdowns continue.

“Trade and Industry Minister Ebrahim Patel’s directive to the International Trade Administration Commission of South Africa (Itac) to determine amendments to the Price Preference System guidelines to address the shortage was to be welcomed,” he said, adding that the interventions came at a time when the industry needed all the government support it could get to survive the Covid-19 pandemic and the resulting economic turmoil.

“As Seifsa, we have previously stated our support for the principle of the non-export of scrap metal and are heartened by the government’s decision to support the industry during this difficult time of the pandemic, even as we await a longer-term solution to protect the industry through possible taxes on scrap metal exports,” Nyatsumba said.

Seifsa, which represents 22 employer associations in the broad metals and engineering sector, has in the past supported an export tax on scrap metal due to challenges in the metal industry.

“Keep your face to the sunshine and you cannot see a shadow”.