4 minute read
Freight Innovations: Expect dramatic changes in the logistics industry
from ProAgri Zambia 63
by ProAgri
by Delia Cooney from Freight Innovations
is said to be 2,9% down from 4,5%, it is unlikely that this refers to food inflation, which undergoes significant price fluctuations. This is directly linked to the fuel price as this is regularly amended in the form of a fuel surcharge. It has been stated in the media that the costs are also influenced by crime, as reports indicate The professional team at Freight Innovations comes that huge fraud with quick action and expertise. They are Hayley takes place in Smith, Account Manager; Delia Cooney, National transport compaSales Manager and Robertha Jass, Directors nies due to diesel Assistant. theft. Not only is the
Advertisement
Conducting business in the world economy under duress from the effects post Covid-19 has proven to be of Covid-19, but the use of petroleum extremely difficult and South Africa is has also lessened and with the advent no exception. Consumer buying pat- of the Teslas in the world, the future terns have changed the landscape with may hold financial difficulties for the lessened discretionary income. Due to oil producing countries. With artificial business people working from home intelligence at the forefront of develand the resultant lifestyle changes, opment, this may affect farming by cosmetic products are moving off the reducing the reliance on labour and shelves a lot slower. Appliances inclu- expediting mechanisation, influending television sets and various kitchen cing job creation. This should have a accessories are being purchased online domino effect and reduce the costs of as shoppers avoid malls, increasing farming, which should reduce the end pressure on logistics and last mile price for the consumer. Whilst climate deliveries. With Amazon expanding change continues to dominate, polluits footprint in Southern Africa and tion has escalated and non-compliance Takealots’ expansion, opportunities by municipalities has escalated sewerfor cost-effective deals for consumers age disposal, which has resulted in raw are prevalent, shifting the emphasis to effluent contaminating drinking water, lower costs and rental overheads. rivers and dams. Undoubtedly, this will This will have a domino effect. Many further impact the economy. malls have lost rental income and with Whilst medical costs are relatively the new regulation regarding anchor stable, hospital shares reflect a much tenants being unlawful at a subsidised lower return as preparation for the rental, the scene is set for a transi- pandemic did not result in hospitals tion in property portfolios. Consumer being utilised – it had the opposite trends include grocery shopping online effect. Although the role of doctors’ and fast delivery from most supermar- practices, which included surgical and ket chains, minimising the potential theatre facilities, increased in imporof promoting product sales through tance as this offered operating services, optimum displays and merchandising. hospitals were reserved or limited due This also prevents impulse buys which to Covid-19. would usually be a reliable source of The cost of turnover. doing business in Some industries have shed em- South Africa has ployment which is likely never to be become more recreated, with tourism, restaurants, complex with curios and beauty treatments being the prolonged the most affected. Although inflation attacks on truck drivers and hijackings. Once extrapolated, this have resulted in increased costs for most products and with the cost of insurance rising, the consumer will foot the bill for crime yet again. Insurance companies are hiking premiums and including exclusions as well as increasing excesses in a bid to cut costs as crime increases. The pandemic resulted in the wide distribution of highly valuable personal protective equipment, which became the target of organised crime and hijackings. This type of cargo is currently virtually uninsurable and tutelage depends on the supplier, again impacting the cost of doing business as well as the product. Online tutorship has increased, lowering the use of vehicles and subsequently affecting the motor industry. With large corporates making factory production of tyres redundant, smaller players are entering the market to supply stock, directly influencing job cuts and increasing the role of logistics in the logistics value chain. Pressure on Cape Town Port has lessened due to the pandemic and ships being unable to travel. Much of the sea freight cargo appears to be routed via Durban Port which has improved service levels after a long battle with service failures and delays. The continuation of stable food supplies in South Africa to supply the domestic markets, as well as neighbouring countries remain under pressure due to a variety of factors, which include the ongoing drought in certain areas, political uncertainty, unrest and trucks being continually attacked, which has had an impact on transit times due to trucks only being able to travel during the daylight hours. With huge challenges in the food supply, less purchasing power due to job losses could affect sales. The resulting economic downturn would be lower prices and the ultimate creation of employment in the long run. South Africa is once again the financial leader in the continent. Nigeria fell back after the country surpassed the South African economy in recent years. The Nigerian gross domestic profit contracted by 6,1% in the second quarter of 2020. The stage is set for interesting developments on the continent, with logistics playing a pivotal role in growing the economy.
