Tough times call for smart solutions

With world markets unstable and the rand’s volatility at play, there has been a definite decrease in cross-border volumes, with lower commodity prices further affecting the market. However all is not lost, according to Lesiba Mvundlela, overborder manager for SDV South Africa. “We are going through a bit of a bad patch in the industry,” she said. “But it just means that we have to come up with solutions, along with our clients, that address the market impact and effect cost savings.” According to Mvundlela, the slump in the copper and related commodity prices in particular has had a knock-on effect in the procurement strategies of major buyers in the cross-border sector. “This has forced us to review rating as that is always the first port of call for procurers. Our service providers are working with us through these tough times to ensure that the end customer benefits in this volatile market.” With the emergence of the Walvis Bay port in Namibia and Mozambique’s Beira port there are advantages for the likes of Zimbabwe, Zambia, Malawi and The Democratic Republic of Congo in terms of reduced transit time as opposed to Durban port. “This has led to lower volumes being routed through South Africa to these land-locked countries, with the obvious consequence being that we are slowly losing our grip as the gateway into Africa, in shipping terms – ultimately affecting our trade balance.” She said an increasing number of customers were opting for consolidations rather than full truck loads. There’s also evidence of stricter import regulations, she added, with the likes of Zimbabwe introducing preshipment inspections for various items and Zambia increasing royalty taxes.