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Business Shipping
Higher export freight rates in Lanka declining
Hiran H. Senewiratne
The threat of higher freight rates on Sri Lankan exports to Europe is
easing, former Sri Lanka Shippers' Council sources said. Recent changes
in global trade patterns and booming exports from China are having an
impact on their advantageous position, with lines now giving more space
for Chinese and Indian cargo.
Therefore Sri Lanka could take the maximum advantage with the opening
space from Chinese and Indian cargo with this boom in this region. They
were also able to enjoy fast transit times to their markets because of
the frequency of calls by main line vessels.
Shipping industry experts say that Colombo's strategic position near
the main East-West trade route across the Indian Ocean and its emergence
as a container transshipment hub for the sub-continent had benefited
exporters.
Sri Lankan exporters have long enjoyed relatively cheap freight rates
to their main markets in the West because of shipping lines calling
Colombo for transshipment cargo. Exporters were compelled to pay high
rates six months ago when a surge in Chinese exports to the Port of
Colombo.
The Chinese export surge came in response to government concessions
for exports for a limited time period, Perera said.
The shortage of container slots on vessels calling Colombo was made
worse when big shipping lines shifted some of their scheduled calls from
Colombo to Indian ports to cater to booming exports from the
sub-continent.
Exporters at the time complained that their containers were being
squeezed out of vessels because they were chock full of Chinese and
Indian cargo and that freight rates were going through the roof. But
shipping liner officials said they had no choice but cater to markets
that gave them better returns.
The weakening US dollar that reduced US import power and the
strengthening Euro that drew more imports to Europe also contributed to
the problem at the time.
Diesel and Motor Engineering PLC (DIMO) conducted a seminar for more
than 350 attendees from a wide spectrum of corporate sectors to give an
insight into the new developments in the area of logistics and
warehousing.
 The seminar along with the launch of the new Komatsu AE50 electric
forklift was held recently. The event showcased DIMO's globally
recognised principals, SSI Schaefer, Komatsu Material Handling
equipment, MHE-Demag Dock and Building Maintenance equipment and the
newest car parking systems from Korea.
The central topic of 'Intelligent warehousing solutions' was
delivered by Export Manager of SSI Schaefer International Singapore
Anthony Lou. He emphasised that Sri Lanka is a strategic location in
South East Asia which should be utilized effectively by Sri Lankan
industries.
He noted that there is a tendency to stick to traditional warehousing
heights of 4-5m instead of implementing heights of 15 -30 m which is
achievable through SSI Schaefer.
GM of Construction machinery division at DIMO Chaminda Ranawana, said
their ability to provide total warehouse solutions, from consultation to
implementation the specialised after-sales service that is offered from
DIMO.
The highlight of the evening was the unveiling of the new Komatsu
Series AE50 electric forklift. The Cargills warehouse in Mattakkuliya
will be the first in the country to use this electric forklift.
"With its great operator safety and comfort, superior reliability and
outstanding performance, the Komatsu AE50 electric forklift is the ideal
choice", said Mahen Victoria, Manager of Cargills.
ACFA Sri Lanka goes international
The Head of Customs Brokers, Associations of Australia, China, India,
Korea, Japan, the Philippines and Sri Lanka as members of the Federation
of Asia-Oceania Customs Brokers, Associations, FAOCBA, met in Yokohama,
Japan, recently at a meeting chaired by Executive Director of Customs
Brokers and Forwarders Council of Australia, Stephen Morris.
It is the first seminar for FAOCBA members to join together and
discuss mutual concern of Customs Brokers business, which was jointly,
initiated by Japan Customs Brokers Associations Hideo Hirose and China
Customs Brokers Associations Huang Rufeng.
Darryl Sharp, Customs Brokers and Forwarders Council, CBFC of
Australia, Huang Rufeng of China Customs Brokers Association, CCBA, Ram
Sharma Chunduru of Federation Of Freight Forwarders in India, FFFI,
Young Kim of Korea Customs Brokers Associations, KCBA and Hirose of
Japan Customs Brokers Association, JCBA, led their respective
delegations, and Ms. Marivic Briones of Federation of Accredited Customs
Brokers, FACB Philippines and M.S.M. Niyas of Association of Clearing &
Forwarding Agents ACFA Sri Lanka, attended.
The following are the key outcome from the meeting agenda: The
meeting noted the close alignment of and shared information on Customs
Brokerage Systems in the respective economies attending;
The Meeting Shared Information on the Development and Implementation
of the World Customs Organization (WCO) Concept on a Global Standard of
the Authorized Economics Operator AEO and addressed the business
benefits of an AEO.
The meeting noted complexity of any AEO implementation. The meeting
urged the WCO and its member Customs Administrations to agree to
recognize the needs of small and medium- sized enterprises.
The meeting confirmed the importance of Electronic Data Interchange
EDI, in particular the need for a 'Single Window' in Trade -related
procedures, and that EDI between authorities in Exporting and Importing
Countries should be developed and promoted while maintaining national
sovereignty and privacy principles. |
