14 August 2022 –

Beyond the pandemic-related challenges, importers continue to experience a variety of interruptions as pressure on global supply chains persists.

Importers are increasingly looking to obtain goods and materials from alternative suppliers, says Michelle Horner, trade manager at SACO CFR. As she explained to Freight News, “this has been done in part to avoid areas that have been severely affected by Covid-19 lockdowns, but it has also been done to deal with the numerous production and transport challenges in the current market environment, not to mention the shipping line service routing amendments we are seeing”.

To optimize cargo handling and transit times, neutral consolidators are recognizing the need for flexibility in their service offerings and the necessity to provide importers with alternate cargo routings.

Alternative loading and discharge ports and areas are now necessary to suit our client’s expectations, according to Horner. “While preserving our core LCL services into South Africa, it is important to engage closely with one’s clients to identify routing and service needs, and in turn, to subsequently build solutions for importers assuring the most efficient transportation of goods into the country,” Horner said.

All of this is made worse by continued lockdowns connected to the epidemic, particularly in the Far East. “In these times it has been beneficial to be part of a global network such as the Worldwide Alliance as it provides cost-effective and time-efficient cargo consolidation services from all around the world, allowing our clients and importers to source goods and cargo from any region as needed.”

For South African importers, access to a variety of consolidation services and innovative solutions are crucial given that time and cost are likely the two largest obstacles they must overcome. “Traditionally, importers were able to place cargo orders for ‘just in time delivery, as trade services into South Africa were regular and moved within published transit times. This has changed over the past few years as a direct result of the global pandemic, further impacted by the Russia/Ukraine war,” explains Horner.

“As global port congestion continues, along with road and rail transport challenges and reduced shipping line services into South Africa, cargo lead times and transit times have increased exponentially. As a result, importers are having to secure cargo orders earlier than needed for production and/or resale, which has a direct impact on shipment payment terms as well as business liquidity and cash flow.”

While freight rates have partially stabilized, according to Horner, they are still higher than ever. “The demand for capacity remains high, and although we have not seen the expected surge of cargo as traditionally experienced for the peak season, carriers have maintained the need for optimised utilisation of vessel capacity. Freight rates from the Far East have softened slightly in the past few months, however, European services remain at premium rates, with surcharges being impacted by the high cost of bunker-related charges.”

Source: Freight New