Logistics

Managing the Supply Chain in Times of Disruptive Global Events

Published

5 years ago

September 20, 2021

Clarity between logistic service providers and their customers has never been more important as Covid-19, natural disasters, and shipping chaos land heavy blows, says Bidvest International Logistics

JOHANNESBURG, 20 September 2021 – Ensuring continuity of supply in light of recent global and national events has been an unprecedented challenge for logistic service providers.

The upheavals caused by the coronavirus pandemic have forced entire countries to reimagine how they deliver resources and services while simultaneously overhauling business practices for economic sustainability.

Efforts to supply goods are being massively impacted because of Covid-19 quarantine restrictions at ports of entry, for example.

Coronavirus outbreaks among airport ground and cargo-loading crews have necessitated that affected members are placed in quarantine for up to two weeks at a time, leaving fewer staff to handle cargo.

Cargo is also backed up as flights are unable to depart with full loads. In one recent example, cargo had to be routed from China to Hong Kong for departure, putting tremendous strain on Hong Kong Airport and causing further delays.

As a consequence, the uncertainty around schedule availability, workforce on the ground, and increased demand can lead to an increase in rates in the market.

The world is also having to contend with the growing threat of climate change, increasingly manifesting as catastrophic disasters like hurricanes such as the ones in New Orleans and Texas, wildfires and flooding events that have destroyed billions of dollars worth of infrastructure.

Typhoons and extreme weather in China have become the latest challenge to global supply chains, as goods stuck at some of the world’s busiest container ports are further delayed.

In August, Shanghai’s Yangshan mega-terminal facility and nearby ports evacuated ships as Typhoon In-Fa slammed into the coast, bringing widespread flooding and toppling containers stowed in the hold of a bulk carrier traveling to the US.

Some 16-18 typhoons are expected to form in the northwest Pacific and the South China Sea until the end of 2021, with between four and six of these expected to make landfall in China or impact the country.

While most vessels are destined for the US and Europe, these goods will ultimately be exported to other parts of the world as well. The delays can wreak untold havoc on global supply chains.

Furthermore, the tensions brought on by Covid-19, destructive natural phenomena and political instability are spilling over into violent acts of civil unrest.

In South Africa, an estimated R50-billion worth of damage was caused by looters marauding through the provinces of KwaZulu-Natal and Gauteng, obliterating what little gains had been made in the country’s economic recovery effort.

There have also been shutdowns to vital shipping lanes and ports, notably the blocking of the Suez Canal by the container ship Ever Given in March and the closure of the Chinese ports of Yantian in May and Ningbo-Zhoushan, the world’s third busiest, in August due to coronavirus outbreaks.

A cyberattack on South African parastatal Transnet in July paralysed several of the country’s ports for several weeks as well, forcing the state-owned company to declare force majeure.

Taken together, these events have stretched logistic service providers (LSPs) to the limit.

The congestion, shortage of empty containers, delays, rollovers of shipments and ships bypassing ports are an unintended consequence of these disruptive events which have created a supply-demand imbalance with demand outstripping supply.

In some instances, an ocean line service operator deciding to cancel a call or skip a particular port, a process known as blank sailing, can have dire consequences. On any given week, there are a number of carriers which blank sailings, reducing tonnage and increasing demand.

To put it into context, 4 000 container slots can get lost in one sailing.

But this is only one part of the problem. Trucks still need to transport the cargo arriving at ports, and when drivers who contract Covid-19 can no longer access harbour terminals, the supply chain is further disrupted.

It is no secret that the US is one of the world’s biggest consumer markets, so a boom in shipping volumes is inexorably tied into America’s consumer spend. However, the country is notorious for truck driver strikes and rail and ramp delays, to the point that turnaround of containers often exceeds 60 days.

The costs involved are also astronomical.

Ship charter rates have multiplied in some cases by anything upwards of 300%. Short-term charter rates of between two and three months for a 5 000 TEU (twenty-foot equivalent unit) ship have topped US$135 000 (R1.9-million) a day. Longer term charters (3 to 5 years) are reaching US$50 000 (R727 000) a day.

Currently, carriers are posting record financial results, which places huge pressure on forwarders in the supply chain to manage their clients’ expectations.

In the view of Bidvest International Logistics (BIL), where lead times were previously seven days door-to-door, 21 days are now recommended to accommodate unexpected delays.

However, LSPs should expect at least some blowback.

Because customers are facing their own pressures, perceptions of LSP service failures will mount when supply agreements don’t go according to plan.

The key, BIL says, is knowing how to approach such situations.

Among the options available to LSPs is drawing attention to Standard Trading Conditions, or declaring force majeure if such a clause is included in the service contract.

It could be pointed out, for example, that the European summer holidays are coming to an end, or that China is celebrating its annual Autumn Festival followed by Golden Week at the beginning of October, during which time most companies and factories shut down and many carriers announce blank sailings.

The dearth of manufacturing during this period automatically means that sale days like Black Friday in South Africa will be affected.

With most carriers already fully booked due to limited space and Chinese ports experiencing backlogs due to the effects of typhoons and Covid-19 outbreaks, it stands to reason that Standard Trading Conditions will be severely hampered.

Yet, as much as these factors may be true, customers will still only see a failing supply chain, delayed deliveries to clients, penalties, lack of stock and lost sales.

BIL says no matter how justified or valid the LSP’s reasons, the despairing customer wants solutions, not excuses.

There is a solution, however.

According to BIL, these tensions can be mitigated and even avoided, but for that to happen, there needs to be clarity between the LSP and customer from the outset.

It starts with the take-on of the Scope of Work (SOW)/service contract, including a thorough interrogation of the customer’s business model, and specifically the supply chain.

According to BIL, there are three important questions which the customer and the LSP must jointly and honestly interrogate, namely:

Is the customer’s business model dependent on Imports and/or exports for the survival of the business? If the answer is “yes”, meaning there is no alternative local supply, then the answers to question 2 and 3 become vital.
Does the customer have a robust international supply chain that will sustain its business through 2021 and beyond? If the answer is “yes”, test it by considering multiple disruptive “What if” scenarios. If the answer is still “yes” then proceed in overcoming the challenges, or draining the swamp, so to speak. If the answer is ever “no”, remember the end objective is to drain the swamp. It may therefore be time for a thorough review of the customer’s supply chain. Consider all alternative options to keep the supply chain moving through disruptive global events.
In the event of an unanticipated disaster or disruptive incident, are all parties unambiguously clear on the point where risk transfers from the seller to the buyer? In the event of a maritime disaster or disruptive incident, the importance of this question lies in the correct use and understanding of the Incoterms® rules, specifically the point where the seller has fulfilled its final obligation under the sales contract and risk has transferred from seller to buyer. It also pertains to understanding the obligations of the merchant as defined in the transport document to the ocean carrier/consignor (as contracting party) and air carrier.

BIL says there is no question the past 18 months have been daunting and apart from 2008/9, businesses dependent on international supply chains have rarely seen such unpredictable consequences arising from disruptive global events.

But the key to success in these times is and will continue to be resilience, and knowing how to achieve it.

Logistics

Runway to Railway Puts Innovation and African Identity at the Heart of Infrastructure

Published

1 day ago

October 27, 2026

SCN Africa

Smarter infrastructure, better connected transport systems and airport experiences that reflect African creativity were at the centre of Runway to Railway: Project Maverick, held at the Vineyard Hotel in Cape Town on 22 October 2026. The gathering brought aviation, technology and creative perspectives into a discussion about how innovation can improve infrastructure and the experience of the people who use it.

Held under the theme Simply Connect Africa, the event forms part of the Runway to Railway vision conceived by Anna K Hecart, founder and director of Connected Group. The platform brings different sectors together to explore connections between infrastructure, business and opportunity across the continent.

Panel discussion, from right to feft at Project Maverick: Dirk Ackerman, moderator; Nicholas Ferguson, Executive Managing Director, RSA Aero; Hasnain Motlekar, Acting Chief Executive Officer, BCX; and York Ning, Director, ICT Marketing & Solution Sales Department, Huawei South Africa.

Raising the Bar for African Infrastructure. Panel participants: Dirk Ackerman, moderator; Nicholas Ferguson, Executive Managing Director, RSA Aero; Hasnain Motlekar, Acting Chief Executive Officer, BCX; and York Ning, Director, ICT Marketing & Solution Sales Department, Huawei South Africa.

“Runway to Railway began with a belief that Africa’s progress depends on the connections we make between people, industries and ideas,” said Hecart. “We are pleased to announce the Runway to Railway Expo for November 2027. Our ambition is to bring the people shaping transport, infrastructure and technology together with investors and creative businesses to explore practical solutions and build partnerships that move Africa forward.”

The Expo is being developed as a meeting place for aviation, rail, logistics, infrastructure, technology, tourism and design professionals, alongside investors and public-sector stakeholders. Partners can expect opportunities to showcase their capabilities and connect with potential collaborators. Attendees can look forward to discovering innovations, exchanging ideas and exploring how better connected infrastructure can support African business and communities.

Anna K Hecart, Founder and Director of Connected Group and visionary behind Runway to Railway, addresses the attendees at Runway to Rail.

Anna K Hecart, Founder and Director of Connected Group and visionary behind Runway to Railway, addresses the gathering.

The infrastructure conversation brought the airport development perspective together with the technology expertise of BCX and Huawei. It considered how closer collaboration can support better passenger experiences, reliable operations and the practical delivery of connected infrastructure.

“The decisions that shape a passenger’s journey are made across many different organisations,” said Ackerman. “Bringing developers, operators and technology partners together early helps us see how those decisions fit together and where collaboration can make infrastructure work better.”

“An airport is part of a much wider economic network,” said Ferguson. “Its development needs to consider how people arrive, how businesses connect and how the surrounding region benefits. Innovation should support that wider purpose while making the everyday experience more efficient and welcoming.”

“The value of connected infrastructure lies in what it enables people and businesses to do,” said Motlekar. “Reliable networks, secure systems and useful information need to work together. Planning these capabilities from the outset helps organisations improve services and respond as demand changes.”

Gavin Rajah delivered the closing remarks, extending the conversation to the quality and character of retail experiences at African airports. He highlighted the opportunity to bring greater creativity and a stronger expression of African identity into spaces that shape travellers’ first and last impressions of a destination.

“An African airport should give travellers a real sense of place,” said Rajah. “Our retail spaces can do far more to showcase the continent’s design, fashion, food and craft. We have the talent and the stories. The opportunity is to present them with imagination and the quality they deserve, while creating space for African creative businesses to grow.”

Gavin Rajah, closing speaker, at the Runway to Railway conference, addresses creativity and African identity in the airport experience.

Gavin Rajah, closing speaker, addresses creativity and African identity in the airport experience.

Event photographs

The Raising the Bar for African Infrastructure panel at Runway to Railway: Project Maverick.

Panelists discuss the Bar for African Infrastructure panel at the Runway to Railway conference.

An exchange during the infrastructure panel discussion.

A panellist contributes discussing Project Maverick at the Runway to Railway conference.

A panellist contributes to the infrastructure discussion.

Presentation at the Runway to Railway conference.

An on-stage presentation during Runway to Railway: Project Maverick.

Guests exchange ideas during the luncheon at the Runway to Railway conference at the Vineyard Hotel.

Guests exchange ideas during the luncheon at the Vineyard Hotel.

Guests following the conference programme at Runway to Railway: Project Maverick.

Guests follow the programme at Runway to Railway: Project Maverick.

Guests enjoying a lunch at the Runway to Railway conference.

Guests seated during the event programme.

Guest listening to a presentation during lunch.

A guest listens during the luncheon.

Guests networking at the Runway to Railway conference.

Guests in conversation during the event.

Guests enjoying the opportunity to network at the Runway

Networking at Runway to Railway: Project Maverick.

Attendees at the Runway to Railway conference standing

Guests gather for a photograph at the Vineyard Hotel.

Guests attending the Runway to Railway conference, while networking outside.

Guests connect outside the event venue.

Attendees at the Runway to Railway conference networking inside the Vineyard Hotel.

Conversations continue between programme sessions.

Focused shot of a man and woman networking at the Runway to Railway conference.

A conversation during the event reception.

Two women networking in a lounge area at the Runway to Railway conference.

A conversation at Runway to Railway: Project Maverick.

*All photographs featured in this article were captured by: Elvis Nyelenzi

Logistics

SAFLA Launches Gauteng Region With Eric Pillay Appointed As Chairperson

Published

6 days ago

October 22, 2026

SCN Africa

Group photo of: Arend du Preez: Vice Chair of SAFLA, Gavin Kelly: CEO of the Road Freight Association, Jonathan McDonald: Vice Chair of SAFLA’s and Freek van Rooyen - Partner: Shipping & Logistics at Shepstone & Wylie.

The South African Freight and Logistics Association (SAFLA) has launched its Gauteng region, appointing Eric Pillay as regional chairperson and placing stakeholder engagement, border delays and port bottlenecks at the centre of its agenda.

Pillay, owner of Pro-Active Shipping & Freight Solutions, will lead the region’s efforts to strengthen industry representation and improve engagement with the organisations that influence cargo movement. “We work closely with SAFLA nationally to ensure that our issues are addressed,” Pillay stated, outlining how the Gauteng chapter will connect regional concerns with SAFLA’s countrywide advocacy and engagement.

The official launch breakfast at the Johannesburg Country Club in Woodmead, brought together freight and logistics colleagues and key stakeholders to mark the establishment of a regional platform supported by SAFLA’s national structures.

A Collective Voice for Gauteng

Pillay said the chapter responds to clearing and forwarding companies’ need for a collective voice in their dealings with organisations such as the Border Management Authority and other state-owned enterprises and shipping lines. Its first-year priorities centre on improving stakeholder relationships to boost trade and support regional growth, with border and port delays receiving immediate attention.

Pillay’s longer-term vision focuses on stronger partnerships and efficient cargo movement across Gauteng’s supply chains. “Transport is key to keeping the economy going and I would like to see increased cargo volumes moving efficiently, freely and safely.”

SAFLA Gauteng welcomes companies operating in clearing, forwarding and transport in Gauteng. Smaller and emerging operators can use its platform to raise concerns and access support in navigating industry challenges.

Regional Action Supporting National Reform

SAFLA chair Arend du Preez highlighted the association’s commitment to strengthening regional representation within a unified national framework. “By strengthening our regional representation, we ensure that local concerns are heard, local expertise is utilised, and local solutions can be developed while still benefiting from national support and coordination,” du Preez explained.

He emphasised constructive engagement between industry participants to identify the causes of disruption and resolve operational pressure points. “At the end of the day, our objective remains simple,” he said. “Cargo must move.”

Economic Regulation, Fair Access and Transparent Pricing Highlighted

Guest speaker Ian Bird, Transport & Logistics Focal Area Lead at Business for South Africa, addressed the business-government partnership and progress on logistics reforms, placing the regional launch within the broader effort to improve South Africa’s freight system.

Bird’s presentation highlighted the importance of effective economic regulation, fair access and transparent pricing in encouraging investment. “Effective regulation builds confidence and unlocks investment,” Bird highlighted in his presentation.

Ian Bird: Transport & Logistics Focal Area Lead – Business for South Africa

He also stressed that to deliver the freight volumes so urgently needed by the economy will require both improving the rail network for Transnet and private Train Operating Companies, as well as implementing a comprehensive program of structural reform. The growth in rail volumes will be driven by general freight, which by it’s very nature requires more complex supply chains being developed, operated and managed.

For SAFLA Gauteng, these national priorities reinforce the value of sustained regional engagement with supply chain stakeholders and coordinated escalation of members’ concerns.

SAFLA’s Gauteng chapter aims to help remove bottlenecks, reduce the costs associated with delayed cargo and support trade competitiveness through practical collaboration. Members can also raise local operational issues through SAFLA’s national structures.

Commenting on the launch, Road Freight Association (RFA) CEO Gavin Kelly said the RFA’s MoU with SAFLA means a “stronger, more coordinated industry voice,” while Warwick Lord, chairperson of the Multimodal Inland Port Association (MIPA), added that MIPA “looks forward to working with the association for the benefit of its members and the industry.” Paul Matthew, CEO of the African Meat Importers and Exporters Association added: “Importers and exporters depend on efficient, well-represented freight forwarders. We are proud to partner with SAFLA”.

Warwick Lord: Chairperson – Multimodal Inland Port Association (MIPA)

“It means a great deal to me to be part of SAFLA,” continued Pillay. “The industry has been longing for a voice to air their issues and now we have it.”

Eric Pillay: Owner – Pro-Active Shipping & Freight Solutions

Paul Matthew: CEO – African Meat Importers and Exporters Association

Logistics

Behind Every Life-Saving Treatment is a Reliable Logistics Network

Published

1 week ago

October 20, 2026

SCN Africa

Focused shot of a surgeon in scrubs walking away in scrubs carrying a cooler with life-saving treatment.

A surgical procedure was scheduled for the following morning when healthcare company Cardaxes urgently needed to move a critical vascular shipment into Namibia. A public holiday and customs-related delays left little room for error.

FedEx teams assessed the options, coordinated an air solution and stayed in close contact with the customer. The shipment arrived in time for the procedure.

Healthcare logistics requires more than moving products from one location to another. It calls for careful coordination, specialised handling and the ability to respond when conditions change. For time-critical shipments, every part of the journey matters.

Meeting Time-Critical Healthcare Needs

In healthcare, delivery timelines can be tied directly to procedures and treatment plans. A delayed medicine shipment or medical device can disrupt care and have consequences beyond the supply chain.

“Healthcare logistics operates on a different level of urgency,” says Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx. “You’re not just moving packages; you’re supporting patient outcomes. Every shipment matters.”

The Cardaxes shipment highlights the role of operational expertise in managing unexpected challenges. Assessing route options, working through customs-related delays and coordinating the movement helped get the shipment to its destination in time.

Protecting Product Integrity

For vaccines, biologics, clinical samples and other temperature-sensitive products, maintaining the required temperature throughout transit is critical. Speed alone is not enough if product integrity is compromised.

FedEx offers temperature-controlled packaging designed to maintain temperatures of 2°C to 8°C for either 48 or 96 hours, depending on the option selected. Actual performance can vary with external temperatures, making it important to match packaging to the shipment and expected conditions.

A second shipment over the same weekend involved life-saving stem cells for a patient with blood cancer. FedEx Special Services helped coordinate the movement and provided updates throughout the journey.

Both cases highlight the importance of matching operational planning and shipment handling to the requirements of each healthcare shipment.

Using Visibility to Support Timely Decisions

Healthcare customers need information that helps them monitor critical shipments, identify potential risks and determine when intervention may be needed.

FedEx Surround combines near-real-time monitoring and predictive analytics to help teams identify potential disruptions and prioritise intervention. Sense Aware provides shipment information, including real-time location and temperature data, with alerts for selected conditions.

These capabilities support teams in assessing changing conditions and determining the appropriate response. This is particularly relevant across Sub-Saharan Africa, where customs processes, transport infrastructure and regulatory requirements can vary across markets.

The World Bank has highlighted the importance of improving connectivity and reducing barriers to trade across African markets. For healthcare businesses, effective cross-border logistics is an important consideration when planning the movement of sensitive products.

Planning for Reliable Delivery

Healthcare logistics depends on network capability, specialised handling and timely operational decisions. Involving logistics teams early can help healthcare businesses account for regulatory requirements, assess route options and determine the handling and visibility needed for each shipment.

As healthcare supply chains expand across Africa, these capabilities will remain important to moving medicines, medical equipment and other sensitive products across borders.

Reliable healthcare logistics means delivering the right product, within the required timeframe and in the right condition.