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.\r\nOngoing 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. \r\n
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.
Full Report
R 1 900.00(ZAR) estimated $106.42 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 74.49 (USD)*
Industry Organogram
R 450.00(ZAR) estimated $ 25.20 (USD)*
Historical Reports
The Freight Forwarding Industry in South Africa 2020-06-24
R 1 900.00(ZAR) estimated $106.42 (USD)*
View Report Add to CartThe Freight Forwarding Industry in South Africa 2018-10-19
R 1 900.00(ZAR) estimated $106.42 (USD)*
View Report Add to CartThe Freight Forwarding Industry in South Africa 2016-02-25
R 1 900.00(ZAR) estimated $106.42 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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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 |