In the final quarter of 2023, a decrease in import volumes is anticipated due to diminishing demand for goods.
This decline in consumer spending comes as rising living costs influence the economy.
Kreeson Moodley, trade lane manager at SACO CFR, said the reduction in import volumes was evidence that consumers were tightening their purse strings amid cost-of-living increases, which included rising prices for essential goods and services.
"Economic uncertainty, high percentages of inflation and increased costs are placing a strain on people’s livelihoods, which is resulting in reduced consumer spend and lower demand for products."
And as consumer spending dwindles, businesses are adapting their import strategies. Many are diligently managing their current inventory, prioritising the reduction of existing stock levels before considering restocking.
"As a groupage operator trying to navigate a dynamic market, it is imperative to adapt quickly and continue providing quality products to our customers," said Moodley, indicating that SACO CFR was constantly improving existing services to meet customer needs.
"For example, when Cape Town was cancelled as a port call on shipping lines’ southbound voyages from Europe, there was a tremendous increase in transit times experienced.
"To combat this challenge, an alternative solution had to be found, and MACS Shipping offered a schedule that met the requirement for improved transit times.
"As of May this year, we now perform our LCL service from Hamburg to Cape Town with MACS on every single departure as an additional service offering to our customers."
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