No-one would have thought that we would see such increases in the fuel price as we have experienced over the past six months. As we reel from these increases, the possibility of one of the greatest price increases (in South Africa) that we have ever seen, is looming.
Oil has risen to the $114 (around) per barrel mark, the Rand is trading in the R16 range (or so) and the effect is a sky-rocketing price for fuel in South Africa. It has an impact on every single item that is transported to and across South Africa.
Oh yes, those ships also use fuel, and those tariffs are rising. There are still fewer ships plying the seas (thanks to Covid) and there are constraints in the global logistics chains that not only articulate into delays, but into demand, which has an upward price-pressure effect.
Once goods are landed, they then find their way to either consumers or manufacturers via the dependable road transport network, and that is where the next leg of the logistics journey is impacted by fuel (oil) increases. We have all felt, and will continue to feel for some time, the effects of more expensive fuel.
Now to the “Perfect Storm”: With the oil price and Rand value vis-à-vis the Dollar being what they are, there are reports that the fuel price for June will see an increase of between R1.70 to R2.00 – depending on the commodity (product). However, the “relief” offered by the government to reduce the level of taxation on the price of fuel (by around R1.50 per litre) is due to fall away at the end of May – just in time to join the new price increase.
This means a price increase of around R3.20 (a rough estimate, given all that is currently in play) by the first week of June. We cannot afford that. Or any other increases. We? Well, South Africa – but the first signs of despair and retreat will be within the road freight logistics sector.
Already, some transporters closed their doors due to the effects of the Covid pandemic. Financial pressures have remained on the increase, and the unrest that continues to ferment, radically shown by the violent period in July 2021 when the whole logistics chain was attacked (trucks, depots, distribution centres, warehouses and retails stores), continues to wear down companies and cause more closures. Operating costs within the road freight and logistics sector have continued to increase exponentially, with many of these increases coming at a time when the road freight industry can least afford, or withstand, these shocks.
There are many transport companies that cannot keep facing the continual increase in operating costs and the recent fuel (diesel) price increases have become the final “nail in the coffin” for many of our transporters.
Uncontrolled fuel increases are the factor that can cause a collapse in the road freight logistics sector.
Whether we like it or not, transporters cannot absorb the cost of fuel increases. This puts them out of business very quickly, so the fuel increase must be passed on to the client (who pays for goods to be transported), which is then passed on to the consumer. Disposable funds are decreasing, consumers are being very careful about what they buy, with so-called essentials such as food, medication, power, water and accommodation now the focus for most consumers.
There have been calls for the taxes on fuel to be reduced or removed and “collected elsewhere”. Those options will not resolve the underlying issues:
The basic price of oil – determined outside of South Africa through supply and demand, and
The Rand / Dollar exchange rate – determined by international financial view of South Africa
Solutions to the (expensive) fuel crisis could possibly be:
An agreement between African states producing oil (or refined products) for a far lower rate for African countries in the spirit of the Africa Continental Free Trade Agreement (AfCFTA) and to ensure African economies do not collapse
Concentration by SASOL to produce far more fuel (was its goal in the 1970s and 1980s not to make South Africa independent of foreign oil supply?)
Development and growth of the synthetic fuels industry in South Africa – from all possible sources
Development of electric transportation devices and supply
Not only would we solve our transport energy consumption and demand challenges, we would definitely create employment (more importantly in a long-term and sustainable context) and would be heading in the right direction in terms of moving ourselves away from the reliance on fossil fuels.
Until then, our sole dependable form of goods distribution – from producers to manufacturers to market – will be under dire pressure and could collapse when many of our transporters close down operations, solely due to the unbearable cost of fuel. This will affect all transporters – big and small. By Gavin Kelly – Chief Executive Officer: The Road Freight Association
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.
As SAPICS celebrates 60 years of impact in 2026 under the theme “Legacy to Leadership: 60 Years of Connection, Collaboration & Transformation,” South African supply chain executives face an urgent call to action.
With soaring road freight volumes, warehouse occupancies topping 85%, and compounding rental hikes, local leaders rushing to automate frequently fall into a costly trap. While modern warehousing technology can greatly assist in slicing operational costs and slashing inventory losses, investing heavily in off-the-shelf systems without addressing underlying operational bottlenecks often amplifies the chaos rather than solving it.
True leadership requires recognising that technology is not a standalone silver bullet; transformation happens when advanced process design meets a flexible, digitally prepared workforce.
Why More Technology Doesn’t Always Mean More Progress
When margins shrink, the instinctive corporate reflex is to slash headcount or purchase an automated tool because a competitor did. However, automating a broken process simply yields an automated mess.
“A lot of technology is available off the shelf, and it is dangerous to buy something you don’t thoroughly understand,” warns Willie du Preez, Managing Director of Programmed Process Outsourcing (PPO). “If you don’t understand where your operational bottlenecks are, you will introduce the wrong technology.“
Du Preez notes that real return on investment (ROI) stems from a deep diagnostic phase. This means utilising industrial engineering to map workflows and eradicate systemic friction before buying hardware. Without this groundwork, companies end up with fragmented patches instead of a unified ecosystem, losing critical institutional knowledge.
Furthermore, traditional data tracking compounds this vulnerability. “After-the-shift or month-end information has become obsolete,” Du Preez stresses. “We need real-time data frameworks to make decisions proactively before bottlenecks disrupt the entire chain.“
The Business Case for What Doesn’t Appear on the Balance Sheet
Optimising a warehouse requires looking far beyond obvious hardware and immediate software implementation costs. True operational leadership requires a comprehensive evaluation of regulatory complexity, strategic risk, and financial agility.
“When an organisation conducts a deep cost-benefit analysis, the ‘invisible’ levers of outsourcing become undeniable,” explains Jeandie Leone, Commercial Executive at Workforce Staffing and Outsourcing. “A strategic partner doesn’t just manage transactional headcounts; they absorb significant balance-sheet liabilities. For instance, compliant employers in South Africa must navigate complex regulatory requirements, spending 1% of payroll on Skills Development Levies and up to 6% on continuous training. In outsourcing key components of your workforce, these administrative and training burdens shift entirely to the expert partner.“
Leone emphasises that this strategy fundamentally transforms how human capital impacts corporate finances. “Labour is traditionally one of the highest flat operational expenses (OpEx) for most logistics businesses, yielding zero return on scorecards. Outsourcing allows companies to route this heavy spend through a fully compliant partner, converting a standard operating cost into powerful preferential procurement spend for their B-BBEE scorecard.“
Furthermore, Leone highlights immediate cash flow advantages. “In high-volume environments, managing internal payrolls places immense pressure on working capital. Partnering with an provider that offers standard 30-day payment terms effectively allows a business to defer massive payroll expenses for that period, interest-free. This frees up vital cash flow to reallocate into core technological infrastructure.“
The Strategic Power of Operational Convergence
Even with engineered processes and real-time dashboards, technology remains inert without the people trained to pilot it. In South Africa’s high-attrition warehousing environments, the traditional model of renting generic labour on one side and managing operations on the other is no longer viable. To maintain operational continuity and protect margins, supply chains must merge Temporary Employment Services (TES) and Business Process Outsourcing (BPO) into a singular, symbioticoperating model.
“The relationship works best when both parties are intertwined within the exact same operating solution for the client,” explains Quintus Sliep, Managing Director of Worldwide Staffing. “The TES partner delivers workforce agility by sourcing, onboarding, and scaling compliant personnel as volumes shift. Concurrently, the BPO partner injects the process structure, productivity metrics, and management control that allow that workforce to perform properly.“
When these two disciplines operate in isolation, operations fracture. Integrated, the client receives a scalable solution that maintains strict process discipline during volatile demand spikes.
Leone concurs, adding a regulatory and risk perspective: “Outsource partners bring dedicated legal and operational expertise needed to handle industrial relations, recruitment pipelines, and time and attendance. This ensures absolute continuity, leaving the client’s internal teams free to focus strictly on macro supply chain strategy.“
Bridging the Digital Skills Gap
This integrated approach is critical to addressing one of the industry’s most pressing operational challenges: preparing workers for increasingly digital environments. In modern, data-driven warehouses, traditional once-off classroom training is no longer enough. Software platforms evolve continuously, compliance requirements shift rapidly, and scanning and automation systems are updated in real time.
“We shouldn’t talk about automation or robotics purely as job threats; they support people rather than replace them completely,” says Sliep. “The bigger risk is the skills gap between where operations are going and where the workforce is today. The TES provider must prepare people for the environment, and the BPO must manage that environment so workers can use technology productively.”
Closing this gap requires ongoing collaboration between workforce enablement and operational management. Together, TES and BPO partners create continuous learning environments that equip workers to adapt alongside technology rather than be displaced by it. The result is a more resilient, digitally capable workforce able to engage confidently with evolving systems, workflows, and operational demands.
Operational resilience depends on aligning technological progress with human capability. As du Preez concludes, “Technology alone does not drive transformation; people and their knowledge do.”
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.“