The logistics sector in KwaZulu-Natal has faced major upheaval in recent months due to global events. The crisis in the Red Sea has disrupted Asia-Europe shipping routes, forcing many ships to reroute via the Cape. This had impacted the freight sector at large, said Hans Modipane, executive for logistics at SA Cargo. "While it may seem like demand is up, it's actually due to tight capacity from the current situation," he told Freight News, noting that higher rates were another ongoing challenge. "Rates have increased significantly, and even though the issues are happening elsewhere in the world, we all share the same container f leets, so the impact on rates is w ide spre a d."Modipane said various strategies were being used worldwide to mitigate the impact on shipping, whether due to delays from rerouting away from the Red Sea or unexpectedly high rates. Despite these efforts, South African logistics companies remained highly exposed to international events."One trend we've noticed is renewed interest in nearshoring," he told Freight News. "There's also more prioritisation in purchasing decisions. Cheaper goods are being moved more frequently, while luxury items are delayed due to supply chain challenges."When asked about trends in the Durban market, Modipane noted a shift towards containerising raw materials in Johannesburg instead of Durban. "This means tippers are running shorter back legs to the mines from Gauteng rather than moving the commodities to Durban for containerisation," he explained. "It's also about taking advantage of container availability, given the imbalance we have with 20- and 40-foot containers.”He noted that lack of container availability was another consequence of global supply chain turmoil. "We're experiencing an undersupply of containers, with many stuck in the supply chain due to delays around the Red Sea. Shipping lines are prioritising container availability on higher-paying trade routes, so we don’t always have enough equipment ava i lable."Modipane added that despite efforts to encourage local cargo owners to use 40-foot containers, the success in converting customers had not been as high as anticipated."As logistics service providers, we are currently juggling a number of balls, and the pressure is not expected to ease any time soon," he said. "There is so much uncertainty globally at the moment."Modipane also highlighted the ongoing challenge of dealing with criminal elements in the supply chain. "Cargo theft remains a concern. In our efforts to combat it, we are continuing to invest in and enhance our safety procedures," he explained. "For instance, all trucks must be accompanied by original weighbridge tickets when unloading at our facilities."
