Who Owns Whom

The Freight Forwarding Industry in South Africa

The Freight Forwarding Industry in South Africa 2021

Stephen Timm | South Africa | 29 July 2021

The Freight Forwarding Industry in South Africa 2020

Liz Kneale | South Africa | 24 June 2020

The Freight Forwarding Industry in South Africa 2018

Liz Kneale | South Africa | 19 October 2018

The Freight Forwarding Industry in South Africa 2016

Liz Kneale | South Africa | 25 February 2016

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Report Coverage

This report focuses on the freight forwarding and customs clearing industry and excludes courier activities and the arrangement of freight insurance. It includes information on maritime, rail, road and air freight, trade port and freight statistics, the effect of the pandemic, unrest and cyber-attacks, and corporate actions and developments. There are profiles of 43 companies, including Bidvest Freight, Grindrod, and Value Logistics. Other companies profiled include Barloworld Logistics, which the Barloworld Group plans to sell, clearing and forwarding company Berry and Donaldson, international companies such as Pantos Logistics, and sea freight companies such as Phosfert Marine.

Introduction

This report focuses on the freight forwarding and customs clearing industry and excludes courier activities and the arrangement of freight insurance. Ongoing waves of the pandemic continue to hamper the trade in goods by supressing consumer spending and causing congestion and disruptions at ports. These factors continue to hamper the recovery of the industry and are driving up container freight costs for clients. While freight levels have partly recovered in 2021, it is unclear what effect the onset of the third wave of the pandemic will have on the sector. Most recently the sector has also been affected by rioting in Gauteng and KwaZulu-Natal, which disrupted trucks heading to and from the Port of Durban on the N3, as well as port operations.

Strengths

• Collaboration between South African Revenue Service and the South African Association of Freight Forwarders.
• Globally-competitive multinational companies offering total supply chain service.
• Movement away from narrow import/export activities to providing one-stop-shop supply service.
• Well supported by tech innovations such as those to provide streamlined customs operations.

Weaknesses

• Highly competitive industry with low profit margins and very little differentiation in services offered.
• Inefficiencies at ports threaten the recovery of the sector.
• Rates charged are based on value of goods, transportation and customs costs, over which the industry has no control.
• The growth of the sector is dependent on economic growth and international trade, over which it has no control.

Opportunities

• Airports Company of South Africa is seeking to sell its air cargo facilities.
• Demand for warehousing has increased driven by a growth in ecommerce.
• Government economic stimulus and recovery plans including reprioritisation of investment in infrastructure spending.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Proposed resumption of investment in transport infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• Strong growth in African countries can provide new markets.
• Tech startups are disrupting the logistics sector with new online platforms.

Threats

• A cyber-attack on Transnet’s systems in July 2021 highlights the threat this poses to disrupting logistics.
• Crime and protests are leading to road and rail freight being stolen, while foreign truck drivers are being attacked, affecting the transport of goods by land.
• Delays at border posts and high transport costs associated with cross-border trade on the African continent. Congestion because of the pandemic has increased the risk of lengthy delays.
• High container shipping and air cargo rates are driving up costs for clients.
• Impact of load-shedding on freight forwarder operations.
• Lack of capacity of Home Affairs’ new Border Management Agency.
• Lack of certainty about the impact of the pandemic.
• Port congestion means goods take longer to be delivered, while shipping costs increase.
• Slow consumer spending will slow down economic recovery and reduce the volume of cargo to be transported.
• The impact of the pandemic and associated control measures on global and local economies, trade and transportation of air and marine cargo reduces the volumes of exports and imports requiring freight forwarding and customs clearing services.
• There is a risk of July 2021’s unrest leading to a long-term decline in investment in South Africa, which could impact negatively on trade.
• Threat to South Africa’s gateway status from port and airport infrastructure projects on the African continent.

Outlook

The freight forwarding sector is expected to remain constrained. Logistics company Super Group notes that trade in commodities continues to perform well, but that border closures due to the pandemic are hampering trade, while commodity volumes in South Africa will likely remain uncertain as load-shedding continues. In addition, it expects negative macro-economic factors to affect industrial and consumer demand. Maersk says it is highly uncertain if goods consumption will continue to drive up container demand. It warns that consumer demand for goods from higher household income may diminish. It says households’ appetite for services, such as travelling, could initially take up a larger share of the wallet than usual if countries reopen later in 2021. Paul Waldburger, the managing director of clearing and forwarding company Berry and Donaldson, says reduced freight volumes of about 20% below pre-pandemic levels are now the norm. He expects the sector to continue to trade at these levels in the short term and pick up again in 2022. Bidvest International Logistics managing director Craig Mountjoy says while the outlook the sector is more favourable than a year ago, based on the economic outlook, increased freight rates and shortage of container capacity may delay the growth potential until 2022, when there should be a return to normality. Imperial Logistics CEO Mohammed Akoojee believes the logistics sector will grow at 10% to 12% per annum over the next five years as bottlenecks are removed.

Read More..
The Freight Forwarding Industry in South Africa
The Freight Forwarding Industry in South Africa 2021

Full Report

R 6 500.00(ZAR) estimated $352.87 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 247.01 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 24.43 (USD)*

Historical Reports

The Freight Forwarding Industry in South Africa 2020-06-24

R 1 900.00(ZAR) estimated $103.15 (USD)*

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The Freight Forwarding Industry in South Africa 2018-10-19

R 1 900.00(ZAR) estimated $103.15 (USD)*

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The Freight Forwarding Industry in South Africa 2016-02-25

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 20
4.1.2. Regulations 21
4.1.3. Regulations: Coronavirus 25
4.1.4. Enterprise Development and Social Economic Development 26
4.2. Continental 27
4.3. International 32
5. INFLUENCING FACTORS 40
5.1. Coronavirus 40
5.2. Economic Environment 42
5.3. Infrastructure and Trade 43
5.4. Public and Private Sector Initiatives 44
5.5. Operating Costs 45
5.6. Technology, Research and Development (R&D) and Innovation 46
5.7. Labour 47
5.8. Security and Risk Management 50
5.9. Environmental Concerns 51
5.10. Cyclicality 52
5.11. Electricity and Supply Constraints 52
6. COMPETITION 53
6.1. Barriers to Entry 53
7. SWOT ANALYSIS 54
8. OUTLOOK 55
9. INDUSTRY ASSOCIATIONS 56
10. REFERENCES 57
10.1. Publications 57
10.2. Website 58
APPENDIX 1 60
Services Offered by Freight Forwarders 60
APPENDIX 2 62
Summary of Notable Players 62
ORGANOGRAM 67
COMPANY PROFILES 72
A HARTRODT (SOUTH AFRICA) (PTY) LTD 72
AGILITY SOUTH AFRICA (PTY) LTD 74
BARLOWORLD LOGISTICS AFRICA (PTY) LTD 76
BERRY AND DONALDSON (PTY) LTD 79
BIDVEST FREIGHT (PTY) LTD 81
BIGFOOT EXPRESS FREIGHT (PTY) LTD 84
BLG LOGISTICS OF SOUTH AFRICA (PTY) LTD 86
BOLLORE TRANSPORT AND LOGISTICS SOUTH AFRICA (PTY) LTD 89
BRINKS (SOUTHERN AFRICA) (PTY) LTD 91
CEVA LOGISTICS SOUTH AFRICA (PTY) LTD 93
DHL GLOBAL FORWARDING SA (PTY) LTD 95
DSV SOUTH AFRICA (PTY) LTD 97
ELLIOTT MOBILITY (PTY) LTD 101
EXPOLANKA FREIGHT (PTY) LTD 104
GAC LASER INTERNATIONAL LOGISTICS (PTY) LTD 106
GEODIS SOUTH AFRICA (PTY) LTD 108
GRINDROD LTD 110
HELLMANN WORLDWIDE LOGISTICS (PTY) LTD 114
HENEWAYS FREIGHT SERVICES (PTY) LTD 116
IBHAYI CLEARING AND LOGISTICS CC 118
IMPERIAL CLEARING AND FORWARDING SOUTH AFRICA (PTY) LTD 120
J F HILLEBRAND SOUTH AFRICA (PTY) LTD 122
KINTETSU WORLD EXPRESS SOUTH AFRICA (PTY) LTD 124
KUEHNE AND NAGEL (PTY) LTD 126
LOGWIN AIR AND OCEAN SOUTH AFRICA (PTY) LTD 128
MANICA SOUTH AFRICA (PTY) LTD 130
MEGAFREIGHT SERVICES (PTY) LTD 132
MERCURY FREIGHT (PTY) LTD 134
PANTOS LOGISTICS CO LTD 136
PCA LOGISTICS (PTY) LTD 138
PHOSFERT MARINE (PTY) LTD 140
RHENUS LOGISTICS (PTY) LTD 142
ROHLIG-GRINDROD (PTY) LTD 144
ROHLIG-GRINDROD PHARMA (PTY) LTD 147
SAFCOR FREIGHT (PTY) LTD 149
SAVINO DEL BENE (SOUTH AFRICA) (PTY) LTD 152
SCHENKER SOUTH AFRICA (PTY) LTD 154
SEBENZA FORWARDING AND SHIPPING (PTY) LTD 156
TOLL GLOBAL FORWARDING (SA) (PTY) LTD 158
TURNERS SHIPPING (PTY) LTD 160
UNITRANS SUPPLY CHAIN SOLUTIONS (PTY) LTD 162
VALUE LOGISTICS LTD 165
YUSEN LOGISTICS CO LTD 169

Report Coverage

This report focuses on the freight forwarding and customs clearing industry and includes comprehensive information on the state and size of the sector and the factors that influence it, trade statistics, regulation and corporate action in the sector. There are profiles of 43 companies including DSV Panalpina, formerly Bidvest Panalpina which was bought by Danish company DSV and Grindrod, which increased its stake in its IVS Bulk joint venture. Other profiles include Barloworld Logistics, Ibhayi Clearing and Logistics, Safcor Freight and Value logistics.

Introduction

This report focuses on the freight forwarding and customs clearing industry and excludes courier activities and the arrangement of freight insurance. The coronavirus pandemic has had a serious effect on global growth and trade with restrictions on economic activity, border closures, the cancellation of ship sailings and port closures, and flight cancellations and airport closures. Transport Intelligence believes that the global freight forwarding market has perhaps been hardest hit by the disruption caused by coronavirus as the spread of the virus affected the markets for air and sea freight to varying degrees depending on geography and the intensity of the public health challenges. The reduction in port throughput and aircraft movements is starting to reflect the impact of the virus in South Africa. Although predictions of the impact of the virus are uncertain, the reduction in demand, coupled with the current lockdown restrictions and economic situation will affect the revenue of the freight forwarding and customs clearance sector as a support and facilitation service provider to export and import activities.

Strengths

• Collaboration between South African Revenue Service and the South African Association of Freight Forwarders.
• Globally competitive multinational companies offering total supply chain service.
• Movement away from narrow import/export activities to providing one-stop-shop supply service.
• Well supported by IT innovations such as the to provide more streamlined customs operations.

Weaknesses

• Highly competitive industry with low profit margins and very little differentiation in services offered.
• Rates charged are based on value of goods, high transportation costs and customs, over which the industry has no control.
• The growth of the sector is dependent on economic growth and international trade, over which it has no control.

Opportunities

• Changing trade route patterns and Brazil Russia, India, China and South Africa (BRICS) partnership may open up new markets for trade resulting in increased volume of goods.
• Government economic stimulus and recovery plans including reprioritisation of investment in infrastructure spending.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Proposed resumption of investment in transport infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• Strong growth in African countries can provide new markets.

Threats

• Delays at border posts and high transport costs associated with cross-border trade on the African continent.
• Economic recession, volatile rand, political uncertainty and credit ratings downgrades will slow down economic recovery in manufacturing, mining and agricultural output and reduce the volume of cargo to be transported. Delayed implementation of New Customs Acts Programme and proposed National Road Traffic Regulations regarding high cube containers.
• Impact of load shedding on freight forwarder operations
• Lack of capacity of proposed Border Management Agency.
• Lack of certainty about the impact of the pandemic on opportunities and strengths included in this table.
• The devastating impact of the coronavirus pandemic and associated control measures on global and local economies, trade and transportation of air and marine cargo reduces the volumes of exports and imports requiring freight forwarding and customs clearing services.
• Threat to South Africa’s gateway status from port and airport infrastructure projects on the African continent.

Outlook

Klaus Lysdal, vice-president of operations at online freight forwarder iContainers stated that that prior to the global pandemic, forwarders were largely concerned by market forces such as Brexit, the US-China trade war, low economic growth and International Maritime Organisation low sulphur requirements. In May 2020 DSV Panalpina CEO Jens Bjørn Andersen forecast air and ocean price and supply chain disruption to persist for the rest of 2020. “Freight markets will see significant turbulence in the coming months with volatile rate readjustments likely in the air and ocean sectors as coronavirus lockdowns are eased and demand slowly recovers”. Transport Intelligence’s analysis indicates an extremely challenging year ahead for freight forwarders and projects a global freight forwarding market contraction of between 5% and 7.5% depending on speed and depth of pandemic and economic recovery. The South African industry is likely to produce a similar performance.

Read More..
The Freight Forwarding Industry in South Africa
The Freight Forwarding Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $103.15 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.20 (USD)*

Historical Reports

The Freight Forwarding Industry in South Africa 2021-07-29

R 6 500.00(ZAR) estimated $352.87 (USD)*

View Report Add to Cart

The Freight Forwarding Industry in South Africa 2018-10-19

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

The Freight Forwarding Industry in South Africa 2016-02-25

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 11
4.1.2. Regulations: General 12
4.1.3. Regulations: Coronavirus 15
4.1.4. Enterprise Development and Socio-Economic Development 17
4.2. Continental 17
4.3. International 22
5. INFLUENCING FACTORS 28
5.1. Economic Impact of Coronavirus 28
5.2. Economic Environment 29
5.3. Infrastructure and Trade 31
5.4. Public and Private Sector Initiatives 32
5.5. Operating Costs 33
5.6. Technology, Research and Development (R&D) and Innovation 34
5.7. Labour 35
5.8. Security and Risk Management 38
5.9. Environmental Concerns 38
5.10. Cyclicality 39
5.11. Electricity Supply Constraints 39
6. COMPETITION 40
6.1. Barriers to Entry 40
7. SWOT ANALYSIS 41
8. OUTLOOK 42
9. INDUSTRY ASSOCIATIONS 43
10. REFERENCES 44
10.1. Publications 44
10.2. Websites 45
APPENDIX 1 47
Services Offered by Freight Forwarders 47
APPENDIX 2 49
Summary of Notable Players 49
COMPANY PROFILES 54
A HARTRODT (SOUTH AFRICA) (PTY) LTD 54
BARLOWORLD LOGISTICS AFRICA (PTY) LTD 56
BERRY AND DONALDSON (PTY) LTD 59
BIDVEST FREIGHT (PTY) LTD 62
BIGFOOT EXPRESS FREIGHT (PTY) LTD 65
BLG LOGISTICS OF SOUTH AFRICA (PTY) LTD 67
BOLLORE TRANSPORT AND LOGISTICS SOUTH AFRICA (PTY) LTD 69
BRINKS (SOUTHERN AFRICA) (PTY) LTD 71
CEVA LOGISTICS SOUTH AFRICA (PTY) LTD 73
DHL GLOBAL FORWARDING SA (PTY) LTD 75
DSV SOUTH AFRICA (PTY) LTD 77
ELLIOTT MOBILITY (PTY) LTD 81
EXPOLANKA FREIGHT (PTY) LTD 84
GAC LASER INTERNATIONAL LOGISTICS (PTY) LTD 86
GEODIS SOUTH AFRICA (PTY) LTD 88
GRINDROD LTD 90
HELLMANN WORLDWIDE LOGISTICS (PTY) LTD 94
HENEWAYS FREIGHT SERVICES (PTY) LTD 96
IBHAYI CLEARING AND LOGISTICS CC 98
IMPERIAL CLEARING AND FORWARDING SOUTH AFRICA (PTY) LTD 100
J F HILLEBRAND SOUTH AFRICA (PTY) LTD 102
KINTETSU WORLD EXPRESS SOUTH AFRICA (PTY) LTD 104
KUEHNE AND NAGEL (PTY) LTD 106
LOGWIN AIR AND OCEAN SOUTH AFRICA (PTY) LTD 108
LONRHO LOGISTICS (PTY) LTD 110
MANICA SOUTH AFRICA (PTY) LTD 113
MEGAFREIGHT SERVICES (PTY) LTD 115
MERCURY FREIGHT (PTY) LTD 117
PANTOS LOGISTICS CO LTD 119
PHOSFERT MARINE (PTY) LTD 121
ROHLIG-GRINDROD (PTY) LTD 123
ROHLIG-GRINDROD PHARMA (PTY) LTD 125
SAFCOR FREIGHT (PTY) LTD 127
SAVINO DEL BENE (SOUTH AFRICA) (PTY) LTD 130
SCHENKER SOUTH AFRICA (PTY) LTD 132
SEBENZA FORWARDING AND SHIPPING (PTY) LTD 134
SG AGILITY (PTY) LTD 136
TOLL GLOBAL FORWARDING (SA) (PTY) LTD 138
TURNERS SHIPPING (PTY) LTD 140
UNITRANS SUPPLY CHAIN SOLUTIONS (PTY) LTD 142
VALUE LOGISTICS LTD 145
WORLD NET LOGISTICS (PTY) LTD 149
YUSEN LOGISTICS CO LTD 151

Introduction

The freight forwarding and customs clearance sector makes a major contribution to facilitating trade within South Africa and co-ordinates over 80% of South Africa’s international trade. The value and growth of the market is entirely dependent on local and global economic conditions and trade, over which it has no control. Profit margins are low as charges are dependent on the cost of logistics, port and airport tariffs and the cost of customs duties and import and export permits. The quality of service provided by the sector is determined by the efficiency and capacity of the transportation modes and customs services. Using the South African Revenue Services (Sars) trade statistics as a basis, the industry moved R795bn worth of exported goods and R792bn worth of imported goods from January to August 2018, representing year-on-year increases of 5% and 10.4% respectively. Although the country has slipped into a recession after two quarters of GDP contraction, president Cyril Ramaphosa’s stimulus and recovery plan includes measures to reignite economic growth. South African Association of Freight Forwarders (SAAFF) chairman Basil Pietersen emphasises that although confidence in the freight forwarding sector has improved in 2018, the industry needs to be “wary of complacency in a fast-changing world where disruptors are on the rise. Our industry remains under threat by disruptors and to counter the threat we have no alternative but to do things differently.” This report focuses on the freight forwarding and customs clearing industry and excludes courier activities and the arrangement of freight insurance.

Strengths

• Globally competitive multinational companies offering total supply chain service.
• Movement away from narrow import/export activities to providing one-stop-shop supply service.
• Mutually beneficial relationship between Sars and SAAFF.
• SAAFF is the South African custodian of international Fiata qualifications.
• Well supported by IT innovations such as the Sars Customs Modernisation System to provide more streamlined customs operations.

Weaknesses

• Highly competitive industry with very low profit margins and very little differentiation in services offered.
• Rates charged are based on value of goods, high transportation costs and customs, over which the industry has no control.
• The growth of the sector is dependent on economic growth and international trade, over which it has no control.

Opportunities

• Changing trade route patterns and Brics partnership may open up new markets for trade resulting in increased volume of goods.
• Government economic stimulus and recovery plan including reprioritisation of spending towards activities that have the greatest impact on economic growth.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Resumption of investment in transport infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• Strong growth in African countries can provide new markets.

Threats

• Delayed implementation of New Customs Acts Programme, proposed National Road Traffic Regulations regarding high cube containers, and International Maritime Organisation Container Weight Verification Protocol.
• Delays at border posts, corruption and high transport costs associated with cross-border trade on the African continent.
• Economic recession following two quarters of GDP contraction. Potential reduction in export and import volumes resulting from weak local economy, low commodity prices, weak demand for South African minerals and manufactured goods, high import costs due to weak rand.
• Impact of coal shortages on reliability of electricity supply for an IT-dependent industry.
• Increase in digital disruptors, including so-called tech-forwarders, can be a threat to the traditional freight forwarding model.
• Lack of capacity of proposed Border Management Agency to manage the diverse requirements of border control at 72 designated ports of entry in South Africa.
• Threat to South Africa’s gateway status from the China Belt and Road initiative and infrastructure projects on the African continent, such as port developments in Kenya and Tanzania.

Outlook

With the freight forwarding and customs clearance sector being dependent on economic growth and global trade, South Africa’s stimulus and recovery plan, once implemented, should have a positive effect on the volume and value of exports and imports requiring facilitation and co-ordination by the freight forwarding and customs clearance sector. Nick Bailey, head of research at Transport Intelligence, explains that “the scale and pace of transformation in forwarding is as diverse as it is complex. The world’s largest forwarders are transforming from within, embracing new technology and operating models as quickly as the new start-ups are innovating and enhancing customer experiences. It’s too early to tell what the outcome will be, but two central points of consensus are emerging. Firstly, to be a successful forwarder is to be a tech-enabled forwarder. And secondly, customer centricity is everything as we move towards forwarding-as-a-service”. SAAFF CEO David Logan emphasises that the freight forwarder offers a “holistic knowledge of the entire supply chain which is what shippers need to ensure seamless and efficient movement of their goods. To survive, freight forwarders simply need to be aware of the technological changes and incorporate them into their own strategy”. Chief cargo officer for Turkish Airlines, Turhan Ozen, believes that ”forwarders need to start acting less as intermediaries and more as partners to shippers and transporters, including airlines. And this includes improved visibility and greater collaboration with other industry stakeholders”.

The Freight Forwarding Industry in South Africa
The Freight Forwarding Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $103.15 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.20 (USD)*

Historical Reports

The Freight Forwarding Industry in South Africa 2021-07-29

R 6 500.00(ZAR) estimated $352.87 (USD)*

View Report Add to Cart

The Freight Forwarding Industry in South Africa 2020-06-24

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

The Freight Forwarding Industry in South Africa 2016-02-25

R 1 900.00(ZAR) estimated $103.15 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 9
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 13
4.2. Continental 13
4.3. International 18
5. INFLUENCING FACTORS 21
5.1. Collaboration and Networking 21
5.2. Economic Environment 23
5.3. Infrastructure and Trade 26
5.4. Public Sector Initiatives 27
5.5. Private Sector Initiatives 28
5.6. Rising Operating Costs 29
5.7. Technology 30
5.8. Labour 31
5.9. Cyclicality 33
5.10. Environmental Issues 34
5.11. Security and Risk Management 35
6. COMPETITION 35
6.1. Barriers to Entry 36
7. SWOT ANALYSIS 36
8. OUTLOOK 37
9. INDUSTRY ASSOCIATIONS 38
10. REFERENCES 39
10.1. Publications 39
10.2. Websites 41
APPENDIX 1 43
Summary of Major Players 43
APPENDIX 2 49
Services Offered by Freight Forwarders 49
COMPANY PROFILES 51
A HARTRODT (SOUTH AFRICA) (PTY) LTD 51
BARLOWORLD LOGISTICS AFRICA (PTY) LTD 53
BERRY AND DONALDSON (PTY) LTD 56
BIDVEST FREIGHT (PTY) LTD 59
BIGFOOT EXPRESS FREIGHT (PTY) LTD 62
BLG LOGISTICS OF SOUTH AFRICA (PTY) LTD 64
BOLLORE TRANSPORT AND LOGISTICS SOUTH AFRICA (PTY) LTD 66
BRINKS (SOUTHERN AFRICA) (PTY) LTD 69
CEVA LOGISTICS SOUTH AFRICA (PTY) LTD 71
DHL GLOBAL FORWARDING SA (PTY) LTD 73
DSV SOUTH AFRICA (PTY) LTD 75
ELLIOTT MOBILITY (PTY) LTD 78
EXPOLANKA FREIGHT (PTY) LTD 81
GAC LASER INTERNATIONAL LOGISTICS (PTY) LTD 83
GEODIS SOUTH AFRICA (PTY) LTD 85
GRINDROD LTD 87
HELLMANN WORLDWIDE LOGISTICS (PTY) LTD 91
HENEWAYS FREIGHT SERVICES (PTY) LTD 93
IBHAYI CLEARING AND LOGISTICS CC 95
IMPERIAL SASFIN LOGISTICS (PTY) LTD 97
J F HILLEBRAND SOUTH AFRICA (PTY) LTD 100
KINTETSU WORLD EXPRESS SOUTH AFRICA (PTY) LTD 102
KUEHNE AND NAGEL (PTY) LTD 104
LOGWIN AIR AND OCEAN SOUTH AFRICA (PTY) LTD 106
LONRHO LOGISTICS (PTY) LTD 108
MANICA SOUTH AFRICA (PTY) LTD 111
MEGAFREIGHT SERVICES (PTY) LTD 114
PANTOS LOGISTICS CO LTD 116
PHOSFERT MARINE (PTY) LTD 118
ROHLIG-GRINDROD (PTY) LTD 120
ROHLIG-GRINDROD PHARMA (PTY) LTD 123
SAFCOR FREIGHT (PTY) LTD 125
SAVINO DEL BENE (SOUTH AFRICA) (PTY) LTD 128
SCHENKER SOUTH AFRICA (PTY) LTD 130
SEBENZA FORWARDING AND SHIPPING (PTY) LTD 132
SUPER GROUP TRADING (PTY) LTD 134
TOLL GLOBAL FORWARDING (SA) (PTY) LTD 138
TURNERS SHIPPING (PTY) LTD 140
UNITRANS SUPPLY CHAIN SOLUTIONS (PTY) LTD 142
VALUE LOGISTICS LTD 145
WORLD NET LOGISTICS (PTY) LTD 149
YUSEN LOGISTICS CO LTD 151

Report Coverage

Freight Forwarders discusses current conditions in this highly competitive sector, the outlook for freight forwarding in sub-Saharan Africa and describes the trends and factors influencing the success of the domestic industry. The report profiles 45 companies including local subsidiaries of international companies such as DHL, Kuehne & Nagel, DB Schenker Logistics, Kintetsu World Express and Panalpina as well as South African leader, Bidvest Freight (Pty) Ltd. Also profiled are SMEs Ibhayi Clearing and Logistics CC based in the Eastern Cape which employs 32 people, and KwaZulu-Natal- based Phosfert Marine (Pty) Ltd which has eight employees.

Introduction

This report focuses on the freight forwarding and customs clearing industry and excludes courier activities and the arrangement of freight insurance. The industry plays an essential role in international trade by co-ordinating the movement of exports and imports from a point of origin to a final destination. The value of the local industry is determined by economic growth and international trade, over which it has no control. Using the South African Revenue Services trade statistics as a basis, the industry moved R1,039bn worth of exported goods and R1,087.6bn worth of imported goods during the 2015 calendar year. The industry is expected to receive a short-term boost from the freight forwarding services associated with the transportation of high value imported materials, equipment and machinery for the government’s planned R813bn Strategic Infrastructure Projects and Transnet’s R336.6bn Market Demand Strategy. The greatest challenges facing the industry include the global and local economic situation and the introduction of the new customs legislation framework.

Strengths

• Globally competitive multinational companies offering total supply chain service.
• Movement away from narrow import/export activities to providing one-stop-shop supply service.
• Mutually beneficial relationship between SARS and SAAFF.
• SAAFF is the South African custodian of two international FIATA qualifications.
• Well supported by IT innovations such as the SARS Customs Modernisation System to provide more streamlined customs operations.

Weaknesses

• Highly competitive industry with very low profit margins and very little differentiation in services offered.
• Rates charged are based on value of goods, high transportation costs and customs, over which the industry has no control.
• The growth of the sector is dependent on economic growth and international trade, over which it has no control.

Opportunities

• Changing trade route patterns and BRICS partnership may open up new markets for trade resulting in increased volume of goods.
• Government investment in transport infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Strong growth in African countries can provide new markets.

Threats

• Delays at border posts, corruption and high transport costs associated with cross-border trade on the African continent.
• Implementation of New Customs Acts Programme, proposed National Road Traffic Regulations, and International Maritime Organisation (IMO) Container Weight Verification Protocol.
• Lack of capacity of proposed Border Management Agency to manage the diverse requirements of border control at 72 designated ports of entry in South Africa.
• Negative impact of electricity constraints on an IT-dependent industry.
• Reduction in export and import volumes resulting from weak local and global economy, low commodity prices, weak demand for South African minerals and manufactured goods, high import costs due to weak rand.
• Threat to South Africa’s gateway status from infrastructure projects on the African continent, such as port developments in Kenya and Tanzania.

Outlook

SARS Commissioner Tom Moyane accepts that although there will be challenges associated with the New Customs Acts Programme (NCAP), the benefits include “greater transparency and predictability of doing business, promoting exports, enhancing business competitiveness and stimulating domestic activity, promoting an environment for SMMEs to flourish, and ultimately making South Africa more globally competitive.” In the short-term, however, the South African freight forwarding industry is expected to experience low growth because of the weak economic outlook. The British research institute Transport Intelligence’s Global Freight Forwarding 2015 report predicts that the global freight forwarding market will experience a compound annual growth rate of 5.4% until 2018, when it will be worth US$158.9bn. Basil Pietersen, SAAFF Chairman, forecasts that growth on the African continent will result in increased demand for reliable and competitive freight forwarding and logistics services and emphasises that the South African freight forwarding industry “must rise to the occasion and play its rightful part in the economic development of the region. Whatever the demands, the industry has always embraced them and ensured that they, the Industry, remain relevant in an ever-changing market place.”

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The Freight Forwarding Industry in South Africa
The Freight Forwarding Industry in South Africa 2016

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Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 18
4.1. Local 18
4.1.1. Corporate Actions 21
4.1.2. Regulations 23
4.1.3. Enterprise Development and Social Economic Development 27
4.2. Continental 27
4.3. International 32
5. INFLUENCING FACTORS 35
5.1. Economic Environment 35
5.2. Government Initiatives 37
5.3. Private Sector Initiatives 38
5.4. Rising Operating Costs 39
5.5. Information Technology 39
5.6. Labour 40
5.7. Cyclicality 43
5.8. Environmental Concerns 43
5.9. Security and Risk Management 44
5.10. Electricity Supply Constraints 44
6. COMPETITION 45
6.1. Barriers to Entry 45
7. SWOT ANALYSIS 46
8. OUTLOOK 48
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 49
10.1. Publications 49
10.2. Websites 51
COMPANY PROFILES 55
A Hartrodt (South Africa) (Pty) Ltd 55
Barloworld Logistics Africa (Pty) Ltd 57
Berry and Donaldson (Pty) Ltd 60
Bidvest Freight (Pty) Ltd 63
Bigfoot Express Freight (Pty) Ltd 66
BLG Logistics of South Africa (Pty) Ltd 68
Bollore Africa Logistics South Africa (Pty) Ltd 70
Brinks (Southern Africa) (Pty) Ltd 72
CEVA Logistics South Africa (Pty) Ltd 74
DHL Global Forwarding SA (Pty) Ltd 76
DSV Air and Sea (Pty) Ltd 78
Elliott Mobility (Pty) Ltd 80
Expolanka Freight (Pty) Ltd 82
GAC Laser International Logistics (Pty) Ltd 84
Geodis Wilson South Africa (Pty) Ltd 87
Grindrod Ltd 89
Hellmann Worldwide Logistics (Pty) Ltd 94
Heneways Freight Services (Pty) Ltd 96
Ibhayi Clearing and Logistics CC 98
J F Hillebrand South Africa (Pty) Ltd 100
Kapele Freight and Logistics Services (Pty) Ltd 102
Kintetsu World Express South Africa (Pty) Ltd 104
Kuehne and Nagel (Pty) Ltd 106
Logwin Air and Ocean South Africa (Pty) Ltd 108
Lonrho Logistics (Pty) Ltd 110
Manica South Africa (Pty) Ltd 113
Megafreight Services (Pty) Ltd 115
PANTOS Logistics Co Ltd 118
Phosfert Marine (Pty) Ltd 120
Rohlig-Grindrod (Pty) Ltd 122
Sabila Air and Sea (Pty) Ltd 125
Safcor Freight (Pty) Ltd 127
Sasfin Premier Logistics (Pty) Ltd 130
Savino Del Bene (South Africa) (Pty) Ltd 133
Schenker South Africa (Pty) Ltd 135
SDV (South Africa) (Pty) Ltd 137
Sebenza Forwarding and Shipping (Pty) Ltd 140
Super Group Trading (Pty) Ltd 142
Toll Global Forwarding (SA) (Pty) Ltd 146
Turners Shipping (Pty) Ltd 148
Unitrans Supply Chain Solutions (Pty) Ltd 150
UTi South Africa (Pty) Ltd 155
Value Logistics Ltd 159
World Net Logistics (Pty) Ltd 163
Yusen Logistics Co Ltd 165