Tag: transcom-sharaf

  • Holding the Line

    Holding the Line

    Photo: Schmidt Pest Management Consulting

    The war on tobacco insect pests continues.

    By George Gay

    On being asked recently whether the war against tobacco insect pests would ever be won, most of the experts and interested parties contacted, referring mainly to post-harvest tobacco in transit or storage, said no, qualified in one way or another. But Vernon Schmidt of Schmidt Pest Management Consulting wondered whether “winning” or “losing” was the best way to judge what was happening overall. The important point in the battle against the tobacco beetle and tobacco moth, he said, concerned whether industry players were working together, communicating well and implementing fundamental pest control strategies. In other words, was the industry stewarding its resources well to allow it to use the tools available to it wisely and thereby minimize tobacco and tobacco product losses?

    “Communication lines need to remain open, and cooperative research needs to be supported by the players within the industry in order for us to stay ahead of the insect pests,” said Schmidt in an email response. “This is the brilliance of Coresta and the work of its Subgroup on Pest and Sanitation Management in Stored Tobacco [PSMST].”

    Worryingly, however, he added a caveat that is unlikely to have come out of the blue. “Pulling out of cooperative endeavors and doing it on our own will not be a winning strategy,” said Schmidt, who was closely associated with Coresta and the PSMST in the past, and who is likely to be so again shortly after a break made necessary by his transition from an employee of Reynolds American to starting his own consultancy.

    And Schmidt had other warnings. There would be no success without the industry’s putting in the hard work of implementing fundamental pest control practices, and there would still be challenges, he added, even where the fundamentals were in place. Phosphine resistance remained a challenge and would continue to worsen if the industry did not address the causes. Insisting on quality phosphine fumigations remained a must, and consideration had to be given to eliminating ineffective fumigations, such as container fumigations, or, at least, implementing measures to improve them greatly by, for instance, requiring barrier sheeting be placed on the floors of containers before loading to minimize gas leakage.

    And in what seemed to me to be a minor bombshell, Schmidt admitted that the way in which phosphine worked as a fumigant still needed to be understood better and should continue to be investigated cooperatively. Such investigations, he added, would likely lead to a revision of the Coresta Fumigation Guide and require a new round of global training.

    Exploring Alternatives

    At the same time, the 30-year search for an alternative to phosphine should continue, again co-operatively, said Schmidt. There was promising work underway investigating a potential alternative to phosphine, sulfuryl fluoride, which offered a completely different mode of action from phosphine. This had the potential to break phosphine resistance where it existed and, additionally, preserve phosphine as an excellent tool for the industry.

    And moving away from fumigation techniques, Schmidt said controlled atmosphere (CA) and freezing treatments should be implemented where feasible.

    Rene Luyten, a director at b-Cat, which installs CA chambers, made the point that tobacco insects were difficult to control, partly because they were able to adapt to new circumstances. In other words, while it was possible to eliminate such insects in individual tobacco batches, there were often routes through which others could enter those batches. In part, this was down to the very nature of tobacco, which is a bulk product subject to transportation, division into smaller consignments and storage. Additionally, tobacco doesn’t exist in isolation but is sometimes stored alongside other products that also provide homes and breeding grounds for insects of concern.

    Indeed, Luyten said it was possible to have in-house clean tobacco free of insects or to receive clean tobacco on one day and the next day to have a huge issue with insects. Of course, the severity of the problem would depend, in part, on the location of the warehouse, with those in warmer climes likely to experience more insect activity. But such issues could arise in many places, added Luyten, even when everybody in the tobacco chain did their best to avoid infestation. Fumigators might comply with best practices that conformed with the guidelines laid down by Coresta. And warehouses might employ best practices in respect of storage, including the use of good sanitation programs. But it wasn’t always possible to have control of all factors, such as when a neighboring warehouse storing raw food didn’t employ strict and proper sanitation protocols.

    Controlled atmosphere technology offers a “green” solution for pest control.
    (Photo: b-Cat)

    Positives and Negatives

    Schmidt, too, saw positives and negatives stretching along the supply chain. A positive would see farmers eliminating carry-over tobacco, but the fact that farmers were unable to treat their post-harvested tobacco was a negative, he said. The receipt by processors of infested tobacco was a negative while the lethal effects to insects of processing was a positive. Reinfestation during transport was a negative while monitoring programs for transported tobacco provided a positive. Good segregation practices during storage constituted a positive, but undetected phosphine resistance was a negative. Continually improved cleaning programs at manufacturing plants constituted a positive, but insect harborages that could not be eliminated without dismantling equipment comprised a negative.

    There is at least one caveat you have to add to the idea that the war against tobacco insects cannot be won. It can be won in the sense that insects of all types and in all their life stages can be eliminated from tobacco just before it is manufactured. Luyten said an increasing number of tobacco manufacturing plants were installing CA technology, which he described as a “green and natural treatment method” offering a 100 percent mortality rate among insect pests in all their life stages. In fact, b-Cat’s main building program currently involves installing CA facilities, including remote control and monitoring systems, at manufacturing sites.

    Away from the major manufacturing sites, things are rather different. For instance, Guy Harvey, the CEO of Transcom Sharaf in Africa, who is based out of Mozambique, said businesses in that part of the world used only chemical fumigation, though this was not for want of trying other methods. Harvey said his company had completed trials on the use of CA in Mozambique but that it seemed the industry was not ready for it yet, which I took to mean that companies further down the supply chain were not willing to help pick up additional costs arising from CA. Certainly, in Harvey’s view, the capital costs of CA were holding back its use in Mozambique.

    This might be unfortunate, though it has to be remembered that fumigation can be effective. Nico Vroom, who runs the consultancy N.I.C.O, also believes the war against tobacco insects will never be won, but he believes, too, that infestations can be kept to a “manageable level” through the use of good fumigation practices and through the employment of recent technological advances, such as sensors for constantly monitoring tobacco.

    While complete victory in the battle against tobacco insects is some ways off, infestations can be kept to a “manageable level” through the use of good fumigation practices and through the employment of recent technological advances, such as sensors for constantly monitoring tobacco.
    (Photo: Transcom Sharaf)

    Ongoing Monitoring

    One respondent who didn’t give an unequivocal “no” in answer to the question about whether the industry was winning the war against insects was Steven Bailey, managing director of the Barrettine Group, which manufactures the Mobe Combo insect monitoring trap. Bailey said he thought it unlikely that the industry was winning the war, but that it might be holding its own. Traditional treatment methods using fumigants were limited to only a few. He was unaware of any new pesticides coming through beyond, perhaps, sulfuryl fluoride, he added, and due to high regulatory and approval costs, didn’t expect there to be any anytime soon. This, together with ongoing phosphine-resistance issues, was a concern, but CA treatments in conjunction with insect monitoring and traditional methods were helping the industry to stay on top of the problem. The importance of ongoing insect monitoring was therefore essential in pinpointing infestations so that control measures could be carried out as soon as identified, thus preventing any infestation from escalating. 

    One of the matters that gets little airing in respect of tobacco insects concerns responsibility. Who is or should be responsible for ensuring tobacco is taken in at its destination—at the manufacturer’s site—insect-free? 

    Well, according to Rainer Busch of NewCo, currently, the shipper is obliged to fumigate tobacco before loading, even though it is very difficult for the shipper to control what happens to that tobacco during transport and when it is opened at its destination. And if the tobacco was found to have insect infestation at its destination, to have been infested during transport, it was necessary to refumigate it or put it through another treatment. It would therefore be better economically and financially to avoid having to carry out two treatments by switching the fumigation or other treatment from the point of shipment to the destination.

    It would seem that while the industry might not be winning the war against insects, it is not losing all the battles. Evripidis Christidis of Missirian told me that the application of integrated pest management techniques was helping the industry to win in the region in which his company operates—the region where classical oriental tobacco is produced. In general, the amount of leaf tobacco currently lost to insects was proportionally less than it had been during past decades. But, he added, this sort of success required close attention being paid in five areas:

    • Personnel training and awareness;
    • Facilities management, including cleaning and sanitation, operating with open structures and creating barriers to insects, such as air curtains and mesh nets, and segmenting the green and final products;
    • Selection of suitable means of transportation;
    • Pest monitoring, with pheromone traps, and the use of UV lamps and space/surface fogging when necessary during tobacco storage; and
    • Pest control methods.

    Another factor that had helped the industry attain better results was the use of only specialized and licensed contractors to perform control and prevention activities, said Christidis. And yet another had been the introduction of Coresta standards for the fumigation in respect of resistant beetle populations, which basically involved higher phosphine concentrations and longer exposure times. A radical but expensive proposal would involve vacuum or nitrogen packing of the final leaf product.

    Learning Lessons

    The importance of Coresta was raised by most respondents, and so it is unfortunate that the Covid-19 pandemic has interfered with some of its work, including the PSMST’s Infestation Control Conferences that, until the pandemic struck, had been held annually around the globe. Of course, there have been other problems caused by the pandemic. Shipping delays have created tobacco transport congestion, and there have been interruptions caused by staff shortages, supply chain difficulties and other transport issues. But the pandemic has also caused a lot of rethinks, some of them positive. Luyten told me that while the start of the pandemic had caused concern, it turned out the past two years had been the best ever for b-Cat’s business. When travelling became almost impossible, it was discovered that internet communications using Teams or Zoom could easily stand in for some face-to-face meetings. “I do hope that everybody is having the same idea,” said Luyten, “that we have learned from this pandemic that travelling, which was a common thing, is not always needed. We all can save a lot of time and help the planet.”

    Which brings us, perhaps, to the most important question. In fighting tobacco insects, are we winning or losing the environmental battle? And there seems to be some good news here. Schmidt told me that industry practices had little negative environmental impact. Beneficial insects were not threatened by current common practices, he said, and phosphine readily broke down in ultraviolet light. At the same time, however, continued training on best practices would help with reducing the improper use of insecticides and excessive fumigant use.

  • Taking Freight

    Taking Freight

    Photo: Transcom Sharaf

    The Covid-19 pandemic continues to disrupt tobacco shipments and storage.

    By Stefanie Rossel

    While the tobacco industry, famed for its resilience, has fared comparatively well during the Covid-19 pandemic, an essential part of the business continues to face challenges: the segment specialized in the shipment and storage of leaf tobacco.

    The outbreak of the coronavirus severely disrupted the global supply chain, leading to a persistent worldwide shortage of containers. As the pandemic spread from Asia, many countries enacted lockdowns, thereby halting economic movements and production. Temporary factory closures caused large numbers of containers to pile up at ports. Carriers reduced the number of vessels to control costs and avoid the erosion of shipping rates. Such moves strangled import and exports. Consequently, empty containers were no longer picked.

    This problem especially affected Asian traders who couldn’t retrieve containers from North America. When Asia’s economy started recovering and China resumed exports even as other countries were still dealing with restrictions, a reduced workforce and minimal production, almost all remaining containers in Asia headed out to Europe and North America, but they failed to return quickly enough for the next shipments.  

    In the U.S., which is also struggling with labor shortages and more complicated customs procedures due to stricter border controls, containers began to pile up. According to Hillebrand Freight Forwarding, out of every 100 containers that arrive in the U.S., only 40 are returning to Asia, with the remainder accumulating in ports and storage facilities.

    A global slowdown in container production due to the Covid-19 pandemic as well as raw material shortages have added to the crisis, as have Covid-19-related port closures. In July 2021, only 36 percent of ships arrived on time, according to Invest Monitor. Unsurprisingly, the costs of transporting goods by container ship have gone through the roof over the past two years.

    Guy Harvey

    Limited Availability, Exploding Rates

    Kyle Kok

    For logistics and storage providers, the situation remains serious. “Our biggest challenge has been obtaining suitable equipment for packing and shipping,” says Guy Harvey, CEO of Transcom Sharaf Group, which is headquartered in Beira, Mozambique. “With reduced vessel callings caused by congestion, slower container turnarounds and reduced imports, it has been a struggle to find enough containers. Some shipping lines prioritized the evacuation of containers to Asia to take advantage of the inflated ocean freight charges and high demand. The increased demand for empty containers also meant empty container free days were drastically reduced and detention charges increased. The reduced vessel callings have made it extremely difficult not to incur demurrage and detention by the time the vessels arrive and sail.”

    Susceptible to pests and diseases, leaf tobacco is a demanding good to transport and store. “The lack of containers has also meant we have had to lower the high standards we set for tobacco grade containers and have had to heavily invest and incur cost upgrading containers ourselves and in partnership with the lines,” Harvey continues. “With fewer vessel callings, shipping has been slower; we have gone from four or eight vessels a month to two at best. Two of the bigger lines have had limited or zero space availability at all to Europe for most of the season due to congestion at their transshipment hubs and overbooking on their European routes. This has meant more pressure has been placed on one shipping line to export the tobacco and reduced competition that affects service delivery and pricing. We have seen transit times to destination more than double as well and often extended dwell times in less-than-satisfactory ports where cross-infestation of tobacco beetle is highly prevalent from past experiences.”

    Kyle Kok, account executive for tobacco at Andromeda Forwarding and Logistics of Rotterdam, Netherlands, hopes that space will free up on vessels by the end of January or in February when the crunch in cargo from the holiday season is out of the way.

    “However, please note that shipowners will not reduce their rates any time soon. What we also have noticed during this pandemic is that many shipowners have their personnel work from home, which does not result into a better productivity, getting answers or even making quick bookings.”

    Lisa Rautenbach, Andromeda’s manager of the tobacco department, estimates that since the beginning of 2020, shipping rates have increased by a factor of five to seven. “But this also differs from which route is being undertaken. For example, cargo to the USA has increased by 530 percent since the beginning of this year.”

    Harvey has seen the cost go up 10-fold on certain routes and in response has reduced orders for shipments to certain destinations. “The limited options and flexibility to some destinations being monopolized by one shipping line has caused costs to spiral,” he says.

    Lisa Rautenbach

    Increased Need for Storage

    Transcom Sharaf and Andromeda Forwarding have been looking for ways to avoid the chaos that currently plagues global supply chains. “We have seen a lot of traditional routes, such as Durban, move back to Beira in some cases and vice versa, where often the decision is based purely on container availability at any given time,” notes Harvey. “Due to the lack of containers in the hinterland, there has been a huge increase in break bulk tobacco to the ports for containerization, which has also led to a bigger and longer storage requirement. We are fortunate that tobacco is a high-value commodity for the region, and as such, we can get some sort of priority on vessel space allocation, but again, it is dependent on container availability.”

    “Vessels remains fully booked as the shortage of containers remains,” observes Andromeda’s director, Bart Brouwerens. “We are looking for all and any options, not only via the regular lines but also via outsiders with smaller vessels, which also want to take part in this market with these high freight rates! Furthermore, Andromeda tries to look at every shipment from every angle, truck/barge/rail connections, etc.”

    To handle the bottlenecks in ports and longer-than-usual storage periods, Andromeda has secured some guaranteed space at certain lines and for certain vessels, Rautenbach explains. But this comes at a price. If forwarders and their clients are unwilling to pay such premiums, shippers may very well delay the shipment or roll the cargo onto another vessel in favor of more profitable cargo.

    Harvey says that Transcom Sharaf has sufficient storage capacity. “But we also had lower-than-average production in the region this year—at the right time for us, fortunately. There have been some tense moments, though; we have had to re-look at the one-third to two-thirds split on container storage space versus warehouse space and will put this into our future development plans now that we have seen how fragile the supply chain can be. We are fortunate to work so closely with our clients and plan openly and accurately on all our movements and timings—without these relationships and the communication lines, the season would have been extremely problematic. We have to forecast months in advance in order to position sufficient empty containers in time.”

    Supply chain disruptions have forced freight-forwarders to reevaluate the amount of space they devote to container storage and warehousing, respectively.

    Uncertain Future

    Just-in-time delivery is virtually impossible nowadays, or available only at premium rates, according to Brouwerens. Andromeda advises its clients to have loading schedules ready as soon as possible in order to reserve space well ahead of the shipping date. “At this stage, we are being forced into a situation that we offer cheap warehousing space in, among other [locations], Antwerp and Dubai and in any city requested via our vast agency network,” he says. “This [is] only because of the unreliability of the services the major shipping lines offer.”

    Brouwerens adds that, regretfully, Andromeda must uphold its credit agreements with its clients strictly as rates are rising considerably. “Shipping lines demand payment either directly or after 14 days,” he says. “If we pay late, shipping lines will cancel the aforesaid 14 days immediately and will fine you with an additional percentage. This all has taken a part of the joy of good communication with lines away, but we, therefore, enjoy extra the good relation we have with our clients and will do so for many years to come.”

    Despite disrupted leaf tobacco deliveries, Harvey expects the big tobacco companies to avoid the experience of the automotive industry, which has been struggling with a shortage of semi-conductors. “Despite the challenges, we have managed to meet our scheduled deliveries fairly well under the circumstances,” he says.

    “I do not see the bigger players being affected or lacking leaf from this region during the current season. However, smaller buyers may definitely face challenges similar to [those of] the automotive industry. Those sourcing from other origins may also be negatively impacted where other commodities may be prioritized above tobacco. Should the situation deteriorate further, there will be an impact on all our customers. If production volumes increase substantially next year, this would also create further disruptions in the current supply chain.”