Politics and drought push freight rates sky high

POLITICAL UPHEAVAL in Zimbabwe and the region's severe drought has created a happy hunting ground for operators keen to exploit the extraordinary circumstances.
According to Kevin Gesseau of Ikamiji Freight, rates into Malawi have gone up 100% as operators find ways to compensate for the absence of return loads.
As a result of the drought there is no tobacco moving out, there are huge quantities of maize moving into the region, and with fewer back loads hauliers are forced to charge double
in order to cover their
own costs for the empty return leg.
Furthermore the northbound leg is largely controlled by Zimbabwe hauliers, an anomaly caused once again by that country's export drought and their facility to import directly from the US paying less import duties on trucks than South Africa.
A number of the bigger exporting companies, who have their own fleets which would stand idle if they were to rely on their own exports, are sending their trucks to South Africa which is creating additional competition for local hauliers.