[dropcap]S[/dropcap]outh Africa’s 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 increased by 9.5% in 2018, but decreased by 4.3% in the first quarter of 2019. 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.
Variable costs, or costs that can be controlled and reduced by operating and maintaining the vehicle professionally, represent 55% of a vehicle’s total operating costs.
In a deal that could reshape the competitive dynamics of both the automotive and semiconductor…
In a potential game-changing development for the U.S. freight rail industry, Union Pacific (NYSE: UNP)…
The U.S. Department of Education has confirmed a temporary pause in processing student loan forgiveness…
Telkom has officially unveiled its refreshed logo and visual identity as part of a broader…
Alaska Airlines has resumed flight operations after a widespread IT outage forced the temporary grounding…
If you’re aged 18 or above, live in South Africa, enjoy playing feature-rich online slot…