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Managing the Supply Chain in Times of Disruptive Global Events

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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

Is Your Logistics Business the One AI Recommends? A Cape Town Agency’s Numbers Say It’s Starting to Matter

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Close up of a woman searching for a logistics partner with AI search.

A year ago, AI assistants sent this business no visitors. Now they do. For transport, logistics and supply chain companies, the way buyers shortlist carriers and freight partners is changing too.

IMS‘s work with Big Talk Entertainment shows how AI search is starting to influence how South African businesses are found. The lessons apply across the sector, from freight operators, couriers and clearing agents to warehousing, cold chain and supply chain software firms.

Between February and July 2026, Big Talk Entertainment recorded 28 website sessions from AI assistants such as ChatGPT, Gemini and Perplexity. Over the same period in 2025, Google Analytics 4 recorded none. The Cape Town entertainment agency worked with Johannesburg-based digital agency IMS to make its website easier for search engines and generative AI tools to find, understand and cite.

The numbers are still small, and IMS is candid about that. “The direction is what matters,” says IMS’s Chief Disruptor, Francois Vorster. “A way of finding customers that did not exist a year ago now does.”

Over the same six months, new visitors from Google search rose 67%, and people typing the website’s address directly into their browser, often a sign that someone remembers a brand, rose 87%.

Why This Matters for Logistics

Big Talk is not a logistics business, but its corporate buyers behave like yours. They research several suppliers before they make contact, and in logistics a poor choice means late deliveries and damaged stock. More of that research now starts with a question put to an AI tool, such as “Which freight forwarders handle cross-border shipments to Zambia?” or “Who offers warehousing near the Durban port?”

“Choosing a logistics, transport or supply chain partner is a high-stakes decision, so buyers research thoroughly before they request a quote, and more of that research now starts in an AI tool and not a Google search,” says Vorster. “We can’t say for certain how much of the improvement came from traditional search work and how much from the AI-focused work. What we can say is that AI tools have become a measurable new source of visitors for a business that had none a year ago.”

What IMS Did

IMS combined traditional search work with making the business easier for AI tools to find and recommend: improving the website’s technical foundations, rewriting pages to answer the questions customers ask, and keeping the business’s details consistent everywhere AI tools look.

For a logistics business, that means clearly explained services, current coverage areas and routes, fleet and capabilities, licences and certifications, and answers to common shipper questions.

“A few years ago, nobody asked ChatGPT to recommend a band for their wedding. Now many people do,” says Deon Schlebusch, Managing Director of Big Talk Entertainment. “We are not walking away from the channels that have always worked for us, but we’d be foolish to ignore a new one that’s starting to send us business leads.”

A Word of Caution

The results come from Big Talk’s own analytics, comparing 1 February to 31 July 2026 with the same period in 2025. Because traditional and AI-focused work ran together, the growth cannot be credited to the AI work alone, and any link between AI recommendations and direct visits cannot be proven from the data. “We would rather show what we can actually measure than overclaim,” says Vorster.

Logistics businesses should also make sure claims about coverage, transit times, licences and safety records are accurate and verifiable, because buyers rely on what AI tools tell them.

What is GEO?

Generative Engine Optimisation, or GEO, is the practice of making a business easier for AI tools to find and recommend. Where SEO is about ranking on Google, GEO is about being the answer an AI tool gives.

The full case study is available at https://imsolutions.co.za/news/big-talk-entertainment/

Portrait of Francois Vorster – IMS Chief Disruptor.

Francois Vorster, IMS Chief Disruptor

Selfie of Deon Schlebusch, Managing Director of Big Talk Entertainment.

Deon Schlebusch, Managing Director of Big Talk Entertainment

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Logistics

Opinion Piece: Open Access to Rail Can Be a Game-Changer for SA, But Only if Infrastructure Investment Accelerates

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Headshot of Nqobile Mthembu

By Nqobile Mthembu, Business Development Manager at ACTOM

South Africa’s move to an open‑access rail model from April 2027 marks one of the most significant shifts in the country’s freight logistics landscape in decades. For the first time, private operators will be able to run services on designated freight corridors, introducing competition above the rail while the state continues to steward the underlying infrastructure.

Under the Transnet Rail Infrastructure Manager (TRIM), created to manage South Africa’s national rail network infrastructure, access deals with eleven private freight train companies have been signed for major national corridors.

This reform has the potential to unlock capacity, improve reliability, and stimulate long‑overdue investment, but only if the physical network is ready for the increased demand it will need to support.

Physical Network Still Lagging

From an institutional and regulatory perspective, the foundations for open access are largely in place. The mechanisms for allocating slots, managing access and ensuring fair participation are emerging, creating a more transparent, commercially oriented environment.

However, readiness on paper does not equate to readiness on the ground. The country’s physical rail network has endured years of underinvestment, maintenance backlogs, security breaches and capacity constraints.

Signalling remains outdated across many corridors, traction power is inconsistent,and rolling stock availability remains insufficient to support rising throughput.While the system may be structurally prepared for multiple operators, the infrastructure is not yet ready at scale.

Open access will only succeed if modernisation accelerates and investment in track, signalling, electrical systems and rolling stock support keeps pace with operator growth.

Pressure Points to Intensify

As new operators enter the network, pressure will intensify across several critical areas. Signalling and train control systems need urgent upgrades to ensure safe, reliable operations.

Power infrastructure must also be stabilised and expanded to support more locomotive movements. Rolling stock shortages will worsen, and demand for maintenance facilities, components and refurbishment capacity will grow rapidly.

These are not isolated challenges; they are interconnected. A modernised signalling system is ineffective without reliable traction power, and additional locomotives and wagons add little value if maintenance capacity cannot support them. The entire ecosystem must evolve together.

Investment Ahead of Demand

The shift to a multi‑operator environment fundamentally changes how engineering and maintenance partners must plan. Under a single‑operator model, suppliers often aligned their investment cycles to one entity’s procurement patterns. That approach is no longer viable.

What is needed now is flexibility, responsiveness and local capacity. Engineering partners must invest in standardised components, strengthen technical support and shorten turnaround times. Operators will need reliable maintenance and engineering support throughout their assets’ lifecycles, and suppliers must be ready to meet that demand.

This is also an opportunity to reinvigorate local manufacturing. For years, limited investment in rail infrastructure weakened South Africa’s domestic rail supply chain. Open access can reverse this trend if suppliers invest early and decisively.

Collaboration Beyond Slot Allocation

Slot allocation determines when and where trains can run, but collaboration goes deeper. Infrastructure managers, operators, OEMs and engineering partners must share information, plan maintenance jointly and coordinate investment decisions. If suppliers are only brought in when equipment fails or procurement begins, the system becomes reactive rather than strategic.

Working together from the outset allows us to design fit‑for‑purpose solutions, plan spares and maintenance capacity, and ensure that assets are supported throughout their lifecycle. A fragmented approach will undermine the very benefits open access aims to deliver.

South Africa’s ambition to move 250 million tonnes of freight by 2030 is achievable, but not at the current pace of modernisation.Reaching the target will require accelerated investment in network capacity, signalling, traction equipment, rolling stock, and maintenance. Without this, the system will struggle to absorb additional operators and volumes.

The Biggest Risk

If infrastructure investment does not keep pace with operator growth, the benefits of open access will not fully materialise. Increased traffic on an already stressed network heightens safety risks, reduces reliability and accelerates wear. Investment in locomotives and wagons must be matched by the infrastructure that enables them to operate efficiently.

Despite these challenges, open access can rebuild South Africa’s domestic rail supply chain, stimulate investment in locomotives, wagons, signalling, electrical refurbishment and local manufacturing, and help restore the country’s position as a leader in rail engineering.

If we modernise decisively, collaborate meaningfully and invest ahead of demand, open access will not only expand freight volumes but will reshape the future of South Africa’s rail sector for generations to come.

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Transport Month Begins With South Africa’s Freight Network Under the Spotlight

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Train station platform at the International Airport Johannesburg

South Africa’s annual Transport Month begins on 1 October, putting the country’s roads, railways, ports and public transport systems back in the spotlight.

The 2026 campaign is being held under the theme “Building a safe, sustainable, reliable and affordable transport system”, with the Department of Transport highlighting the sector’s contribution to social development and economic growth. The campaign comes as South Africa continues to work through major reforms across its transport and freight networks.

For the freight industry, the timing is significant.

South Africa is in the middle of efforts to reform its logistics system, increase private-sector participation in rail and ports, and improve the infrastructure connecting producers with domestic and international markets.

Transport Month therefore arrives with plenty for the industry to watch.

Freight is a Network, Not a Single Mode

South Africa’s freight system stretches across roads, rail, ports, pipelines, airports and intermodal facilities.

The National Freight Databank tracks these different parts of the system across 16 national freight corridors, providing information on infrastructure, freight volumes, commodities and the origins and destinations of cargo.

That interconnectedness matters because a weakness in one part of the network can create problems elsewhere.

A manufacturer may have sufficient production capacity, for example, but still face delays if freight cannot reach a port reliably. An exporter may have international demand for its product but struggle with the inland journey between a mine, farm or factory and the export terminal.

The efficiency of the supply chain ultimately depends on how well these individual links work together.

Rail Reform Remains a Major Priority

Rail is likely to remain one of the biggest areas of focus during this year’s Transport Month.

South Africa is opening its freight rail network to private operators as part of the broader logistics reform programme. The government has identified private-sector participation in rail and ports as an important part of efforts to improve the performance and competitiveness of the freight system.

Several projects are being developed under this approach, including the Ngqura Manganese Export Corridor, Richards Bay Dry Bulk Terminal and the Container Corridor between Gauteng and eThekwini.

Transport Minister Barbara Creecy has positioned these projects within the government’s wider logistics reform programme, which aims to improve the performance of South Africa’s freight system and attract private investment into critical transport infrastructure, as outlined by the Department of Transport.

The objective is not simply to put more trains on the tracks.

The bigger challenge is creating a freight network with enough capacity and reliability for businesses to make rail a dependable part of their logistics planning.

Roads Remain Critical

Rail reform does not make the road network less important.

Road freight continues to connect factories, warehouses, farms, distribution centres, ports and customers across the country. Trucks also provide the first- and last-mile connections that rail cannot always provide.

That makes road maintenance, congestion management and road safety important supply-chain issues in their own right.

Johannesburg is putting some of these challenges at the centre of its own Transport Month campaign. The City of Johannesburg has identified reducing traffic congestion, repairing road infrastructure and improving transport reliability among its priorities, alongside initiatives focused on road safety and public transport.

The City is also using the campaign to promote greater public-private cooperation, with projects involving its transport entities, PRASA, Gauteng Provincial Government, public transport operators and other partners.

These projects may not directly move freight, but they form part of the urban transport environment in which commercial vehicles, workers and deliveries operate.

Ports Remain Critical to the Export Chain

The pressure on South Africa’s ports also makes transport reform particularly important for exporters.

Government has identified improved port infrastructure and greater private-sector participation as part of its broader logistics strategy. The Durban Container Terminal Pier 2 concession, for example, has brought private-sector involvement into one of the country’s most important container gateways.

For exporters, the issue is ultimately straightforward: getting goods to a port is only useful if those goods can then move through the terminal efficiently.

This is why road, rail and port reforms cannot be treated as separate projects. The performance of an export corridor depends on the connections between them.

What Should the Industry Watch?

Transport Month provides a useful opportunity to look at whether South Africa’s reforms are beginning to translate into measurable improvements.

For freight operators, that means watching rail capacity, road conditions, port performance and the development of alternative logistics options.

For manufacturers and exporters, the focus will be on whether these changes reduce delays and make transport costs and delivery times more predictable.

And for government, the challenge is turning infrastructure investment and policy reform into a transport system that businesses can actually rely on.

South Africa already has an extensive transport network. The bigger challenge is making its different parts work together more effectively.

As Transport Month gets underway, that may be the most important measure of progress: not simply how much infrastructure is being built, but whether the network is becoming easier to depend on.

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