There’s an increasing move in the clearing and forwarding sector to expand operations to provide end-to-end services.“Companies that previously specialised only in customs clearing or only in freight forwarding are now expanding operations to include trucking, warehousing, cold storage, specialised and project cargo solutions to name a few,” says Clifford Evans, customs liaison manager at Berry & Donaldson. “The industry, in general, is also becoming more professionalised due to the competitive nature of the environment within which it operates.”This is a positive development for the sector and a trend many hope will continue.It comes amidst ongoing challenges for the sector, which operates in an extremely difficult environment.“Besides being an exceptionally competitive industry, it often faces challenges over which it has no control,” explains Evans. “Agents and forwarders have no choice but to rely on numerous other parties in the supply chain to operate successfully.”Shipping lines, airlines, rail transport, trucking, warehouses, depots, and government and customs authorities all make up a part of the mix – in addition to the cargo owners themselves.“The challenge is to remain competitive while dealing with outside inf luences such as freight rates, transport availability and schedule integrity, f luctuating currencies, political change (both local and international), and an ever-changing customs landscape to mention a few. Currently, and unfortunately, the clearing and forwarding industry also faces the challenge of not having a recruitment pool of skilled, properly trained staff to draw from.”According to Evans, the industry has, in the main, relied on in-house training, with only a few options available to be formally trained. “This is, however, being addressed and is a work in progress, but it will take time before the industry reaps the rewards of being able to employ young, well-trained staff. As with any industry, new blood is not just a requirement, it is a necessit y.”Evans maintains that now more than ever the industry needs to remain positive. “Agents are a crucial link in the international supply chain, and post-Covid, there has been an improvement in both import and export volumes internationally,” he says.In South Africa, many clearing and forwarding companies suffered significant financial losses during the two years of lockdown. “There are signs of recovery and, in some cases, companies are back to pre-Covid figures. This bodes well not only for the industry but the country. There is still a long road ahead to full recovery for some companies, but the signs are certainly positive.”Evans describes the local industry as resilient, saying that despite the numerous risks and challenges, agents and forwarders are emerging stronger than ever before. Going forward, he says it will remain important for the sector to be able to mitigate risk. “Not only from a local perspective but internationally. A possible resurgence of Covid, the war in Ukraine, worldwide political turmoil, climate change, and financial instability are all aspects that could have a serious impact on our industry.”
