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Freight Forwarders in South Africa 2016

  • February 2016
  • -
  • Who Owns Whom
  • -
  • 172 pages

Summary

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Freight Forwarding Sector: This report focuses on the freight forwarding and customs clearing industry which plays an essential role in international trade by co-ordinating the movement of exports and imports from point of origin to final destination. During 2015 the domestic sector moved R1,039bn worth of exported goods and R1,087.6bn worth of imported goods. According to industry body the South African Association of Freight Forwarders (SAAFF), there are approximately 900 companies involved in freight forwarding, with a total employment 18,000. Role players estimate that only 30 of these companies have more than 50 employees.


Challenging Conditions: The value of the local industry is determined by economic growth which averaged 1.3% in 2015 and is expected to reach a maximum of 0.9% in 2016. The most pressing issues facing the industry apart from the weak global and local economies include border management, transformation and new customs legislation, which has caused uncertainty and confusion as a result of delays, postponements and the lack of an implementation date. In the short-term, however, the sector is expected to receive a boost from the freight forwarding services associated with the transportation of high value imported materials, equipment and machinery for the government’s planned R870bn investment in transport, energy, housing, health and water infrastructure over the next three years.



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.

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