Logistics costs at their highest – worldwide

GROWTH IN trade and
logistics is an on-going
trend and delivering goods
is becoming increasingly
more expensive, according
to Marius Swanepoel, CEO
of Imperial Logistics –
which has sponsored the
just-released CSIR logistics
survey.
“As we are challenged to
continuously work smarter
and manage our costs,
it's important to monitor
our performance and put
learnings into practice,”
he said.
Putting the spotlight
on domestic logistics and
transportation in relation
to international trade, the
CSIR reported positive
logistics growth for the
southern African region and
highlighted the challenges
faced in increasing SA’s
global competitiveness.
Based on 2006 data
and information, the
report found that domestic
logistics costs account for
15.7% of the country's
gross domestic product
(GDP) – half a percentage
less than the previous figure.
Transportation
constitutes the major
component of logistics at
56.9% – an increase
of 0.7%.
Since 1997, growth
in transportation has
predominantly been
captured by road. In 2006,
total land transport in SA
amounted to 1.5-billion
tons shipped – up by 5.5%
from 2005.
This cost factor is not
only an SA phenomenon,
the report added, but a
global trend.
It was also reported in
the 19th State of Logistics
Survey (based on 2007
data) and released by the
Council of Supply Chain
Management Professionals
(CSCMP) in the US. It found
that the logistics costs as a
percentage of GDP at 10.1%
in 2007 was at its highest in
the US since 2000.
Still focusing on the
world stage, the CSIR report
calculated that sea-borne
trade increased from 2005
to 2006 by 4.3% to reach
a total of 7.4-bn tons.
Meantime, containerised
traffic handled at SA ports
grew by 7% in 2006 – and
bulk exports and imports
increased 6% and 4%,
respectively.
“Seaports are generally
acknowledged as a region's
economic lifeline,” said
the CSIR. “With growth
figures exceeding that of
international trade, SA is
increasingly becoming the
gateway into Africa, and the
region's logistics hub for
international trade.”