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

Delivering Change: How Logistics Helps Connect Communities and Create Social Impact in South Africa

Published

3 days ago

July 17, 2026

SCN Africa

Admin

Every day, FedEx connects people, businesses and communities through its global network. While that network is best known for moving packages around the world, its impact extends beyond commerce. The same expertise that helps keep supply chains moving can also help connect communities with the resources, opportunities and support they need to thrive.

Across South Africa, community organisations are working to address local challenges and expand opportunities for young people. Their impact, however, depends not only on funding and commitment, but also on the ability to reach people consistently and effectively. From delivering essential resources to bringing together volunteers and community partners, logistics plays an important role in turning good intentions into meaningful action.

“Social impact does not happen in isolation,” says Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx. “Whether it’s supporting youth programmes, enabling volunteers or helping organisations reach underserved communities, reliable logistics plays an important role in making that impact possible.“

Through FedEx Cares, the company’s global community engagement programme, FedEx works alongside nonprofit organisations, customers and team members to help strengthen communities, create opportunities for young people and inspire employee volunteerism. In South Africa, this commitment comes to life through initiatives that reflect the spirit of Mandela Day – bringing people together to make a meaningful difference through collective action.

One example is FedEx Play Parks, delivered in partnership with Kids Collab. The initiative expands access to safe, inclusive and structured play spaces for children in underserved communities, helping support physical development, social wellbeing and stronger social connections.

Complementing this effort, FedEx Day of Play brings together children, community organisations and FedEx volunteers through activities that encourage participation, play and connection. As part of the company’s Mandela Day activities, it reflects FedEx’s commitment to creating positive experiences that leave a lasting impact.

FedEx also supports organisations such as Sporting Chance, whose Street Soccer Programme uses sport to promote youth development, life skills and social inclusion. Together, these initiatives help create environments where young people can build confidence, develop new skills and realise their potential.

“Collaboration is essential when it comes to addressing complex social challenges,” says Teixeira. “Community organisations bring local knowledge and trusted relationships, while businesses can contribute skills, resources and operational expertise. When these strengths come together, it becomes possible to create initiatives that have a broader and more lasting impact.“

That spirit of collaboration is reflected in the commitment of FedEx team members, who volunteer their time and expertise alongside community organisations throughout the year. Their involvement demonstrates that creating meaningful impact is not only about investment, but also about showing up, contributing and supporting the communities where they live and work.

As South Africa continues to create new opportunities for young people and strengthen community wellbeing, collective action will remain essential. Through FedEx Cares, FedEx remains committed to using its people, expertise and global network to help create opportunities, strengthen communities and deliver lasting social impact.

“At its core, logistics is about connecting people with possibility,” concludes Teixeira. “When those connections help young people access new opportunities and strengthen the communities around them, we see the impact that is possible when we work together.“

Logistics

Freight Forwarding in South Africa: Choosing the Right Logistics Partner

Published

5 days ago

July 15, 2026

SCN Africa

Admin

When goods move from one country to another, there’s far more happening behind the scenes than simply booking space on a ship or aircraft. Freight forwarders coordinate every stage of the journey, from transport and customs clearance to warehousing and final delivery, helping businesses navigate an increasingly complex global supply chain.

Although many freight forwarders offer similar core services, their strengths can vary considerably. Some specialise in time-sensitive air freight, while others focus on ocean freight, project cargo or cross-border transport across Africa. Understanding those differences can help businesses choose a logistics partner that best suits their operations.

Global Reach and International Networks

For businesses importing or exporting goods, access to an established global network can make a significant difference. International freight forwarders work with shipping lines, airlines, customs authorities and logistics partners around the world, helping shipments move more smoothly between countries.

Companies such as DHL Global Forwarding, Kuehne+Nagel and DSV are recognised for their extensive international networks, making them a popular choice for businesses that regularly move freight across multiple markets.

Industry Expertise Matters

Every industry has different logistics requirements. A shipment of automotive components doesn’t move in the same way as pharmaceutical products or oversized mining equipment, and each comes with its own compliance, handling and transport considerations.

Many freight forwarders have developed specialist expertise in particular sectors. DB Schenker has built a strong reputation in industrial and automotive logistics, while Rhenus Logistics supports industries ranging from manufacturing and retail to project cargo and supply chain management.

Technology Is Becoming Part of the Service

Freight forwarding has become far more transparent than it was a decade ago. Businesses increasingly expect to know where their shipments are, receive regular updates and access documentation without lengthy delays or unnecessary administration.

Many of the industry’s leading providers now offer digital tracking, online shipment management and real-time reporting, giving customers greater visibility throughout the freight journey. For businesses managing international supply chains, that information has become just as valuable as the transport itself.

Looking Beyond Transport

A freight forwarder often provides much more than transport. Customs brokerage, warehousing, cargo insurance, distribution and supply chain consulting have become part of the broader service offering, allowing businesses to work with a single logistics partner across multiple stages of the supply chain.

This is particularly valuable for businesses looking to simplify operations, reduce administrative complexity and improve coordination between suppliers, transport providers and customers.

Choosing the Right Freight Forwarder

There’s no single freight forwarder that’s right for every business. The best choice depends on what you’re moving, where it’s going and the level of support your operation requires.

For some businesses, a global network may be the priority. Others may place greater value on specialist industry experience, digital visibility or customs expertise. Taking the time to compare capabilities, rather than simply comparing prices, often leads to stronger partnerships and more resilient supply chains.

Logistics

Gearing for Efficiency: RFA and SAFLA Sign Memorandum of Understanding

Published

6 days ago

July 14, 2026

SCN Africa

Admin

The Road Freight Association (RFA) and the South African Freight and Logistics Association (SAFLA) have formalised a strategic partnership through the signing of a Memorandum of Understanding (MoU), thereby creating a broader advocacy framework into the freight forwarding and logistics space.

The agreement establishes a framework for structured collaboration across customs modernisation, border digitalisation, trade facilitation and capacity building, with the shared goal of reducing friction and costs throughout the supply chain.

RFA CEO Gavin Kelly welcomed the partnership, describing it as a natural and timely alignment of purpose. “The road freight sector does not operate in isolation. Every delay at a port of entry, every manual Other Government Agency (OGA) process, every compliance bottleneck has a direct bearing on road freight transporters in the supply chain.

“By aligning formally with SAFLA, we extend our lobbying reach into the forwarding sector and give government a combined and unified signal on trade facilitation priorities rather than a series of fragmented requests and proposals from the industry.

“Multiple voices, speaking in concert, carry far greater weight than any one association speaking alone. This MoU allows the RFA to broaden its advocacy footprint in a meaningful and credible way,” Kelly said.

SAFLA Executive Officer Dave Logan expressed equal enthusiasm, emphasising the importance of addressing the practical needs of both SAFLA and RFA members, as well as the broader transport and logistics industries in South Africa through coordinated action.

“Collaboration is a necessity in the freight industry. Our members operate at the interface of customs, border management, regulatory compliance and international trade, and they face challenges that no single association can resolve alone.

“Joining forces with the RFA creates a platform where the combined weight of our memberships can drive real, tangible improvements. We are particularly encouraged by the momentum already building through SAFLA’s participation in the South African Revenue Service (SARS) Stakeholder Forums. This MoU deepens those engagements by bringing road freight perspectives into our discussions with the country’s revenue services.

“SAFLA is excited about this development and looks forward to working with the RFA,” Logan added.

Shared Focus Areas and Practical Priorities

The MoU identifies several priority areas for joint action, including engagement with SARS, the digitalisation of OGA processes, Smart Border development, trade facilitation improvements, capacity building and process mapping.

The two associations will also establish escalation mechanisms to address systemic challenges on behalf of their respective memberships. A particular emphasis has been placed on OGA digitalisation and customs streamlining, areas where inefficiencies continue to generate unnecessary compliance costs.

Smoother OGA and SARS processes reduce the administrative burden on freight forwarders and clearing agents, and those savings filter directly down the supply chain to road freight operators and transporters. For the RFA, this connection is central to the partnership’s value proposition.

The Memorandum will be reviewed annually by the Chief Executives of both associations, ensuring that the collaboration remains responsive to the evolving needs of the sector and to developments in South Africa’s customs and border management environment.

The agreement was signed on 1 July 2026.