Covid-19 has hit the cold chain economy hard. Where, how and even if it survives remains to be seen. According to Paul Lawrence, managing director South Africa for Tigers Global Logistics, the export of chilled meat and aquatic products came to a grinding halt because airlines cancelled most f lights to and from South Africa.
“We have seen a very slow recovery in this market segment with f light availability varying from one a week to once in two weeks.”Commenting on other cold chain sectors, Lawrence said market diversification was clearly evident in the table grape sector with a higher proportion of grapes being exported to Canada, China, the Middle East, Southeast Asia and the USA.
“We have seen a renewed interest in South African table grapes from the North American market, which is very promising.“ In terms of Rooibos tea, we have experienced a slight rise in the number of containers being exported, which can most likely be attributed to the fact that it has proven health benefits and is full of antioxidants.”The overall market, however, remained extremely uncertain for importers and exporters, he said.
“It has been very welcome to read that the citrus industry is expecting a record export of 143.3 million cartons of citrus to more than 100 countries this year, as well as a further growth of 500 000 tons over the next three to five years. This statistic makes for a lucrative investment opportunity.”Lawrence said at present there was a backlog of ecommerce orders due to the lockdown – with reduced staff across the board from couriers to pickers, which was affecting all areas of the supply chain.
“Dealing with delays is another challenge for the cold chain sector,” said Lawrence.
“The lack of adequate infrastructure and trained personnel impacts port productivity, resulting in delays which are passed through the supply chain. The slow modernisation of government agencies causes delays in the import process, and the lack of staffing increases the cost to the importer for examinations and releases.”
He added that the inefficient rail system affected road infrastructure as cargo was forced onto the roads, which increased the direct cost of transport. “But Tigers systems and resources are fully integrated to continue operations and provide essential services to their customers via the online portal SmartHub:Connect."