South Africa has advanced to 23rd place in the Agility Emerging Markets Logistics Index, reflecting notable progress in international logistics opportunities and digital transformation initiatives, the latest Cargo Movement Update reports.
This climb signals growing confidence in the country's ability to facilitate efficient supply chain operations in a rapidly evolving global landscape.
The latest Update compiled by the South African Association of Freight Forwarders and Business Unity SA adds that the country's transhipment capabilities remain a pressing concern.
Despite improvements in regional transhipment, South Africa faces challenges in enhancing its role as a hub for sub-Saharan Africa. Increased hub cargo volumes are crucial for boosting port competitiveness and supporting intra-African trade under the African Continental Free Trade Area.
Analysts highlight that bottlenecks, infrastructure limitations and regulatory hurdles continue to impede growth in this sector.
On the global front, the supply chain strategies are shifting. A recent survey shows that 54% of logistics professionals plan to reduce reliance on China by 2030. This move is driven by geopolitical tensions, efforts to diversify manufacturing bases, and the pursuit of more resilient supply chains. The trend is expected to benefit emerging markets, including African nations positioning themselves as alternative sourcing destinations.
In the liner trade, Drewry’s Global Container Port Throughput Index recorded a month-on-month decline but posted year-on-year growth.
The maritime consultancy adds that African ports experienced a modest uptick, attributed to improved terminal operations and regional trade flows. Nonetheless, the continent's ports face stiff competition from global counterparts, underscoring the need for continued investment in port infrastructure and technology.
Meanwhile, the United States is considering imposing substantial levies on Chinese-built vessels, a move that could disrupt established trade routes and compel carriers to seek alternative sourcing for fleet expansion. Industry experts warn that such measures may introduce volatility to shipping markets and escalate costs for shippers.
Container freight rates continue to decline, compelling carriers to offer discounts on long-term contracts. While some capacity additions are expected to limit substantial rate increases, carriers are striving to maintain pricing discipline through careful contract negotiations. Global port congestion remains relatively stable, with approximately 8% of the fleet experiencing delays. Carriers are navigating these conditions by adjusting schedules and leveraging digital solutions to enhance operational efficiency.
As global supply chains evolve, South Africa's continued focus on infrastructure upgrades, policy reforms, and digital innovation will be pivotal in capitalising on emerging logistics opportunities. Enhancing transhipment capabilities and aligning with broader regional integration efforts will be key to sustaining the country’s upward trajectory in the logistics sector.
