I ndependent groupage operator CFR Freight is predicting a decrease in volumes to Zimbabwe for the year ahead after a relatively constant second half of 2018. And the reasons, according to road freight manager Hilton Tait, are the ongoing foreign currency challenges along with the lack of fuel in the country. But, he said, making any predictions about the landlocked southern African country was extremely difficult at present and anything could happen depending on the ability of the Zimbabwean government to address the challenges. According to Tait, orders are still being placed but suppliers outside Zimbabwe remain hesitant to dispatch goods. He said it was becoming more common to only release cargo once payment confirmations had been received. “Some large organisations are refusing to underwrite the debts of subsidiaries within Zimbabwe,” he told FTW. “We are also seeing that suppliers who previously gave credit lines have taken a harder stance and reverted back to how they conducted business in 2003 during hyperinflation. They need payment before they dispatch goods.” The forex and latest fuel crisis where prices have soared from US$ 1.38 to US$ 3.13 per litre of diesel have sparked riots across the country. This, along with other factors, has also led to fewer hauliers running to Zimbabwe which in turn has resulted in delivery delays. Commenting on border efficiency, he said delays and bottlenecks at the Zimbabwe border posts remained a reality for cross-border road transporters, a situation that had been exacerbated by the insistence of the Zimbabwe Revenue Authority (Zimra) that nearly all cargo be inspected at the Condep container depot. “It does slow down the whole clearance process at Beitbridge,” said Tait who confirmed that CFR Freight continued to run a dedicated weekly service to Zimbabwe.
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Some large organisations are refusing to underwrite the debts of subsidiaries within Zimbabwe. – Hilton Tait
