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

The Ripple Effect of One Late Delivery

Published

2 days ago

July 24, 2026

SCN Africa

Admin

A truck running a few hours behind schedule doesn’t usually make headlines.

On its own, it might seem like a minor delay. But modern supply chains are built around timing, and when one delivery falls behind, the effects can quickly spread far beyond the vehicle itself.

A supplier may need to adjust production, a warehouse could reshuffle its receiving schedule, transport planners might reroute deliveries and customers may find themselves waiting longer than expected. What begins as a single delay often becomes a series of small decisions across the supply chain, each one helping the business get back on track.

Every Delivery Fits Into a Bigger Plan

By the time a delivery vehicle leaves a supplier, a lot has already happened.

Production has been completed, warehouse space has been allocated, transport has been booked and customers have been given expected delivery dates. None of those decisions happen in isolation. They’re connected, and each one depends on the previous step going according to plan.

When a delivery arrives late, that carefully planned sequence starts to shift. Warehouse teams may need to rearrange unloading schedules, transport providers adjust routes and operations managers rethink the rest of the day’s workload.

The delay doesn’t stop when the truck arrives. It simply moves somewhere else.

Timing Matters on the Production Line

Manufacturing is one of the clearest examples of why reliable deliveries matter.

Companies such as Volkswagen Group South Africa and Toyota South Africa Motors depend on thousands of parts arriving throughout the day to support production. While manufacturers build flexibility into their operations wherever possible, production still relies on components being available when they’re needed.

If a shipment arrives later than expected, teams don’t simply stop working. They look for ways to keep production moving, whether that’s changing the order of work, using available stock or adjusting schedules until the missing components arrive.

Behind every delay is a team working to prevent it from becoming a much bigger problem.

Warehouses Keep Everything Moving

Warehouses often become the place where those adjustments happen.

A late delivery can mean several trucks arriving together instead of throughout the day. Receiving teams may need to reorganise unloading bays, move labour between tasks or change the order in which shipments are processed to keep goods moving.

The faster those decisions are made, the less likely the disruption is to affect the next stage of the supply chain.

That’s one of the reasons businesses have invested so heavily in real-time visibility. Knowing about a delay before a truck reaches the warehouse gives operations teams valuable time to adapt rather than react.

Customers Only See the Last Part of the Journey

Most customers never see the planning that happens behind the scenes.

They don’t see the warehouse changing its schedule or the transport planner finding another solution. What they experience is the final outcome: whether the product arrives when they expected it to.

That’s why communication has become such an important part of modern logistics. If businesses can keep customers informed while solving problems in the background, they’re far more likely to maintain trust, even when things don’t go exactly as planned.

A reliable supply chain isn’t one where every delivery is perfect. It’s one where people, processes and technology work together to keep disruption from spreading any further than it has to.

Logistics

Why Regional Trade Isn’t as Simple as Crossing a Border

Published

3 days ago

July 23, 2026

SCN Africa

Admin

On a map, regional trade looks straightforward. South Africa shares borders with six neighbouring countries, while the Southern African Development Community (SADC) connects businesses across a market of hundreds of millions of people. Moving goods across the region should, in theory, be one of the easiest ways for businesses to grow.

The reality is often far more complicated.

Getting a truck from Johannesburg to Gaborone or Lusaka involves much more than covering the distance. Border procedures, customs requirements, road infrastructure and transport delays all influence how quickly goods reach their destination. For many businesses, crossing a border remains one of the least predictable parts of the journey.

The Border Is Often Where Momentum Slows

A truck arriving at a border post isn’t necessarily close to completing its journey. Depending on the route, drivers can spend hours, and sometimes longer, waiting for documentation to be processed, inspections to be completed or traffic to clear.

Those delays don’t just affect delivery schedules. Vehicles remain out of service for longer, transport costs increase and businesses lose flexibility when responding to customer demand.

For companies managing time-sensitive goods or tightly planned delivery schedules, a delay at the border can quickly affect the rest of the supply chain.

Every Border Brings Different Requirements

Moving freight between countries also means navigating different customs procedures, import regulations and documentation requirements.

While many businesses work with experienced freight forwarders and customs clearing agents, cross-border trade still requires careful planning. A missing document, an incorrect tariff code or an unexpected regulatory requirement can delay an entire shipment.

As companies expand into regional markets, understanding these operational differences becomes just as important as understanding the customers they’re supplying.

Infrastructure Doesn’t End at the Port

South Africa has one of the region’s most developed logistics networks, but regional trade depends on much more than local infrastructure.

Road conditions, rail connectivity, border facilities and transport corridors all influence how efficiently goods move once they leave the country. A well-managed warehouse or an efficient port operation means little if the next stage of the journey becomes a bottleneck.

That’s why logistics businesses are increasingly looking beyond individual facilities and considering the performance of the entire transport corridor.

Opportunity Doesn’t Stop at the Border

There’s no shortage of opportunity for businesses looking beyond South Africa’s borders. Regional trade continues to grow, and agreements such as the African Continental Free Trade Area (AfCFTA) are helping create a stronger foundation for doing business across the continent.

The bigger challenge is making those opportunities work in practice. A trade agreement may make it easier to do business on paper, but goods still need to clear borders, travel along reliable transport corridors and arrive on time. That’s where logistics becomes the difference between opportunity and reality.

Regional trade will continue to evolve, but one thing is unlikely to change. Businesses will always depend on supply chains that can move goods across borders efficiently, consistently and with as few delays as possible.

Logistics

DP World Leaders Announced as Keynote Speakers at GCCA African Cold Chain Conference

Published

4 days ago

July 22, 2026

SCN Africa

Admin

Two leaders at global logistics pioneer DP World are announced as keynote speakers for the Global Cold Chain Alliance (GCCA) African Cold Chain Conference in Johannesburg, taking place September 2-3, 2026.

DP World operates in every continent of the globe, employing more than 126,000 people from 169 nationalities, powering international trade through a range of solutions including cold chain logistics across ocean, air, road and rail. William Sears, Chief Commercial Officer Logistics for Africa at DP World; and Mohammed Mahomedy, Head of Infrastructure and Rail for Africa at DP World, will take to the conference main stage on September 3 to share their insights into DP World’s approach to integrated logistics at scale in practice.

William Sears has over 20 years’ experience in logistics and supply chain optimisation across a range of industries and disciplines. Having joined South African logistics business Imperial in 2010, William was appointed to DP World leadership following Imperial’s acquisition by the global business in 2022.
Mohammed Mahomedy leads DP World’s development of the company’s rail and ports integration strategy across the African continent. He is responsible for identifying strategic opportunities that support the expansion of DP World’s presence across the broader logistics value chain in line with its long-term objectives in Africa.

The GCCA African Cold Chain Conference will bring together temperature-controlled logistics businesses and partners from across the continent to examine the industry’s most pressing challenges and exciting opportunities, exploring the theme of ‘It’s Time for Dialogue: Exploring Progress, Priorities, and Partnerships’. The event includes an outstanding program of renowned speakers, panel discussions, networking receptions and a high-quality exhibition. Find out more and register at www.gcca.org/events/gcca-african-cold-chain-conference.

GCCA Senior Vice President Global Market Engagement Adam Thocher said: “I am delighted that DP World’s William Sears and Mohammed Mahomedy will be sharing their insights and experiences on the crucial topic of integrated logistics at scaleas the keynote speakers at the 2026 GCCA African Cold Chain Conference. Temperature-controlled logistics operations are expanding throughout the continent:connecting Africa’s cold chain and investing in associated infrastructure will be fundamental to Africa’s future food resilience and global trade opportunities. The GCCA conference is creating a unique forum for cold chain operators and partners to discuss the food supply chain’s challenges and opportunities at national and global levels.”

The two DP World leaders will be joining an outstanding line-up of expert speakers at the conference, including:

Brent Melvin (General Manager RSA Logistics Dubai) sharing experiences of the cold chain’s response to extreme disruption in the Middle East
Dr. John Deng Diar Diing (Executive Secretary of the Northern Corridor Transit and Transport Coordination Authority), discussing regional corridors as catalysts for intra-African trade
Dr. Newton Matope (CEO of Cold Solutions Kenya and GCCA Africa Chairman), exploring the temperature-controlled logistics industry in the continent, and
Sara Stickler (President & CEO, GCCA) and Adam Thocher (Senior Vice President, Global Market Engagement, GCCA) on GCCA’s priorities and action in Africa.

Find out more about the GCCA African Cold Chain Conference 2026 at www.gcca.org/events/gcca-african-cold-chain-conference/