Transporters take strain as strong rand shrinks market

OVERBORDER HAULIERS are tightening their belts as the stronger rand forces southern African importers to switch from South Africa to cheaper sources in China and India. “The government doesn’t realise how severely exporters are being hit,” says Central African Logistics MD John Wheadon. “And once a supply chain has been set up from India and the Far East, it will be very difficult for South Africa to regain that market.” The overborder transport and forwarding specialist has already felt the impact on its own business. An annual contract for the movement of 20 000 to 25 000 tons of bread flour that was sourced from South Africa last year has been lost to Mauritius and Indian suppliers which are far cheaper sources. And Wheadon fears severe haemorrhaging in the road transport industry as the impact filters through. “One major company has already closed its doors, and we’re likely to find a saturation of trucks with not enough cargo,” says Wheadon. Malawi-registered CAL has been fortunate to find new niche markets and has just signed up a contract for the movement of coal from Mozambique to Malawi. The company is also moving large volumes of fertiliser into Malawi and Zambia. “This is our traditionally busy period, but the stronger rand has taken its toll.” Wheadon also believes that Durban’s port charges have resulted in a significant shift away from the port. “A lot of shippers are now importing into Beira due to the strong rand. “We’ve moved some of the fleet from the Johannesburg run to the Mozambican port which is pumping,” says Wheadon. “I hope that the recent weakening of the rand will continue and attract the procurement of goods from SA once again. Exporters and transporters are really feeling the strain - it cannot continue.”