![]() "You could have a claim, for example, where our STCs aren’t quite clear on how to handle that issue. That could be a change in case law or legislation, but also when we come across a new situation," Wixley says. "In terms of our customers, we have a very clear set of standard trading terms and conditions, based on the South African Association of Freight Forwarders (SAAFF) conditions, but over the years we have adapted them as and when the South African landscape has changed. The risk this can expose you to is that you might have gaps in your insurance cover because you haven’t contracted correctly throughout the supply chain."įor BIL, as the logistics operator, for example, there are two parts to the contractual chain: customers and subcontractors. "You might get a small 'one-man band' transporter or forwarding agent along the chain who simply doesn’t understand how everything fits in. "People often don’t understand how the liabilities fit into the bill of lading from the carrier, or the contracts you might have with your transporter," she says. Not only do contracts govern the system of manufacturing, selling, importing, exporting and transporting goods, but they also aid in mitigating risk.Īlison Wixley, head of legal and risk at Bidvest Freight (the holding company for Bidvest International Logistics), says one of the big problems in South Africa today is a lack of understanding of how the contractual regime works. This is particularly relevant in South Africa, where legislation changes frequently.Ĭontracting lies at the heart of supply chains. When supply chains are stressed, as they have been for the past three years due to Covid-19 and more recently the Ukraine conflict, companies need to be secure in the knowledge that the legal arrangements that underpin trade relationships are watertight.
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