According to the Road Freight Association’s Chief Executive Gavin Kelly It is going to take at least five years for South Africa’s economy to recover from the impact of lockdown and the COVID-19 pandemic. “There are numerous and complex challenges that lie ahead for trucking operators in our new volatile, uncertain, complex and ambiguous (VUCA) world” explained Gavin.
Over the coming years there are numerous obstacles that road freight operators will face that include:
- Reduced markets: reduced demand for transport of goods, as consumers purchase less and less.
- Higher transport (energy input / alternative energy) costs.
- Increased costs in maintaining personal barriers / protection against COVID-19 – and preparing for whatever other pandemic may be around the corner.
- Stiff competition from e-commerce platforms: these will undermine conventional retail models and open up opportunities for the parcel/courier industry, which in turn will affect large retail logistics chains and conventional retail models.
- Labour demands: there will be continued pressure for increased / maintained wage / benefit levels, which will not be sustainable going forward.
- Continuous pressure to cut costs: automation and the Fourth Industrial Revolution will definitely change current operations and transport methodologies.
And remember, without trucks South Africa stops.