South Africas major logistics companies are finding the weak economic climate to be a major challenge, with a slowdown in manufacturing and mining production and consumer spending resulting in pressure on volumes
The Statistics SA Land Transport Survey shows that the seasonally adjusted volume of freight transported by road in South Africa increased by 9.5 per cent in 2018 but decreased by 4.3 per cent in the Q1 2019.
According to the ‘Freight Transport by Road in South Africa 2019’ report by ResearchAndMarkets, industry role players indicated that escalating fuel costs and a poor economic environment have placed pressure on customers and eroded margins.
The sector is affected by numerous cost increases including fuel prices, the Road Accident Fund levy and carbon tax. Delays at ports and border posts could have a significant impact on logistics costs. Additional costs include vehicle tracking and tracing systems, warehousing and distribution operating costs, municipal charges, escalating electricity costs, costs of compliance with legislation and standards and a proposed waste tyre recycling levy.
ResearchAndMarkets’ report covers the transport of freight by road including furniture removals and excludes the operation of terminal facilities, crating and packing for transport purposes and delivery departments of warehouses operated by business concerns for their own use.
