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NVOCC records growth in FTLs

14 Nov 2024 - by Liesl Venter
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Since its founding in 1994, SACO Shipping in South Africa has built a solid reputation in the overborder road freight sector, strengthening its foothold in the region and the Indian Ocean Islands. While this expansion into emerging regional markets offers significant opportunities, SACO acknowledges that it hasn’t come without challenges — many of which are ongoing.Navigating these obstacles has been possible thanks to the company’s dedication to its values of neutrality and a robust internal business culture, which have served as cornerstones of its growth. "Our overborder road freight product has come a long way," said a SACO spokesman. "Extending the reliability associated with our services to less-established environments requires resilience and collaboration within the freight forwarding market."The challenges faced are multifaceted, ranging from global economic shifts and currency volatility to infrastructure constraints and bilateral customs issues. These factors impact cross-border trade, just as they do overseas operations. The result has been a blend of cross-trade shipments, South African-origin cargo, and an increase in FOB (Free on Board) cargo from the more established SADC and BLNE (Botswana, Lesotho, Namibia, and Eswatini) markets. According to the spokesman, SACO has responded to this by maintaining a solution that leverages trusted South African supply chain networks, which continue to support client needs amid regional growth.“The market is most certainly awake to new potential offerings of trade routes via Namibia and Mozambique, but we have seen consistent demand for our South African-based services, underscoring the importance of scale and established supply chain solutions,” said the spokesman.He said accountability, neutrality and collaboration with premium partners continued to form the bedrock of service offerings. “Our mandate as the master loader for our road consols provides SACO with the control and autonomy needed to navigate challenges as they arise.”According to the spokesman, an experienced team is important when operating in Africa as it facilitates optimal communication and planning, critical factors for logistics on the continent.“It is an approach that has fostered trust and led to significant growth in the FTL (Full Truckload) sector, with increasing support from a variety of non-traditional freight forwarding partners. Furthermore, the range of commodities moving into and out of the region has broadened substantially in recent years. What once consisted primarily of basic mining goods now includes a diverse array of FMCG and white goods, all seeking the advantages of a f lexible, agile LTL and integrated ocean/road solution. While volumes from traditional origins like the Far East, the USA, and India remain strong, there is also a notable increase in demand from emerging markets such as Türkiye, Brazil, Eastern Europe, and Mauritius.”Asked about the region, the spokesman said there were some regional obstacles that continued to impact cargo movements. “The benefits of faster border clearances often come with the drawback of inconsistent customs enforcement, where the same laws may be applied differently by officials at the same border post. Many international clients also face challenges understanding the unique operational realities of the African market. Often, there is an expectation of a linear, globally standardised supply chain that can be managed remotely. SACO frequently encounters resistance from overseas stakeholders frustrated by local factors such as port delays, industrial action and inconsistent trading conditions across the SADC and BLNE regions, issues which often require explanation from subject-matter exper ts.” LV

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