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Opinion Piece: Logistics under pressure – the race to stay lean, compliant and operational

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By Natashia Moosa, Commercial Manager for Africa and Middle East at Workforce Staffing

04 June 2026

A series of escalating economic and regulatory pressures is currently reshaping South Africa’s transport and logistics sector at a scale that few operators have experienced before. In May 2026, petrol and diesel prices increased by between R3.27 and R6.19 per litre. These sharp, sustained fuel hikes are forcing businesses to re-evaluate every aspect of their cost base, from route planning to fleet utilisation and headcount.

As margins tighten, the sector remains heavily dependent on a scarce pool of skilled Code 14 drivers. This creates a catch-22 situation: operators must cut costs to survive, but they cannot cut the very skills required to move goods. Against this backdrop, the phased national rollout beginning July 2026, of the Administrative Adjudication of Road Traffic Offences (AARTO) Act adds a final layer of regulatory pressure, transforming traffic compliance from a back-office administrative task into a significant operational risk that can progressively sideline fleet capacity if compliance is not actively managed.

The end of fixed-cost logistics

The extreme volatility of fuel prices has made any static business model a liability rather than an asset. With diesel costs rising by over R7 per litre in April 2026 alone, fuel now consumes up to 50% of the total operating budget for many trucking and delivery firms. This is no longer a temporary spike; it is a structural shift in the cost of doing business in South Africa.

There is now a decisive shift away from rigid fleet structures toward smarter route optimisation, load consolidation and more flexible operating models. In this environment, workforce flexibility has become a business necessity. When fuel costs can rise sharply within a single month, operators can no longer sustain fixed payroll structures that remain unchanged regardless of workload or demand. Businesses need the ability to scale labour capacity up or down quickly in response to changing market conditions, without carrying unnecessary overheads during slower periods.

Solving the Code 14 scarcity paradox

Trimming costs is exceptionally difficult when the most critical skill in the business is already in chronic short supply. The South African market is not just short of licensed drivers; it is short of work-ready professionals who hold valid Professional Driving Permits (PrDPs) and carry a proven track record of regulatory compliance.

Because these drivers are in such high demand, they are incredibly mobile. For an individual operator, the cost of retaining them during low-volume periods is often prohibitive. However, losing them creates an immediate capacity crisis when demand returns. This is the paradox: keeping them is unaffordable but losing them is unsustainable.

This is where a Temporary Employment Services (TES) model can provide the strategic buffer logistics organisations need, by allowing companies to access a pre-vetted pool of Code 14 talent on a variable-cost basis. Externalising the risks and administrative burdens associated with payroll, Bargaining Council mandates, and complex industrial relations allows operators to scale their capacity up or down in real time. This approach ensures continuity without the anchor of long-term permanent overheads.

AARTO: a new breed of operational risk

Beyond the immediate financial pressure lies the looming administrative weight of the AARTO Act. Expected to begin its phased national rollout in July 2026, AARTO raises the stakes for traffic infringements, moving traffic enforcement into a centralised administrative system where accountability is absolute.

The demerit system introduces a model that can paralyse a fleet. Companies now face the significant burden of maintaining real-time driver registers and ensuring that driver nominations occur within a strict 32-day window. Failure to manage this process does not just lead to higher fines; it risks the suspension of operator cards and vehicle licences once the 15-point demerit ceiling is breached. In a tightly regulated environment, one unmanaged infringement can lead to a truck being pulled off the road for months.

Proactive compliance as a shield

A strategic TES partnership acts as a critical compliance filter in this new regulatory era. Since the TES is the employer of record, it takes on the legal responsibility for maintaining POPIA-compliant driver data, tracking permit renewals, and ensuring that every trip is linked to a verified identity.

More importantly, a TES partnership allows businesses to embed AARTO compliance into their workforce policies before the first demerit point is ever issued. Aligning disciplinary codes and employment contracts with the demerit system now means that operators can avoid the post-rollout scramble that leads to litigation, CCMA disputes, and sudden capacity loss. Preparation and a proactive approach turn compliance from a reactive headache into a defensive shield.

The agility advantage

In 2026, resilience in the transport sector will be measured by how quickly a business can pivot. Scale and fleet size are no longer the primary differentiators of success; agility is. Future-proofing a logistics operation requires more than just better route software or newer trucks; it requires a fundamental update to HR and compliance architecture.

Shifting toward a flexible workforce model while taking advantage of the legal expertise of a TES partner allows operators to move from a state of constant reaction to proactive control. In a market where margins are paper-thin and risks are escalating, success beyond survival will belong to those who can stay compliant, stay lean, and stay mobile, all at once.

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

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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.

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Freight Forwarding in South Africa: Choosing the Right Logistics Partner

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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.

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Gearing for Efficiency: RFA and SAFLA Sign Memorandum of Understanding

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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.

RFA CEO Gavin Kelly

SAFLA’s Executive Officer Dave Logan

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