Ctrack Freight Transport Index growth slows

1st December 2020

By: Irma Venter

Creamer Media Senior Deputy Editor

     

Font size: - +

The October Ctrack Freight Transport Index (CFTI) shows that the index will not boast the same growth in the fourth quarter as the record-breaking third quarter, but that some improvement is still expected.

The index measures the health of South Africa’s logistics sector.

“It is a pity that the positive recovery following Covid-19 lockdown measures is now being affected by factors such as delays at border posts and violence aimed at truckers,” says Ctrack South Africa MD Hein Jordt.

Delays at borders are currently sometimes more than a week, and during the last week of October the average delay for heavy trucks at the Beitbridge border post was close to 100 hours.

Internationally, analysts have seen the global supply chain recover up to 90% of prelockdown levels, but further lockdown restrictions in Europe and the US seem to have put the brakes on that recovery.

On a year-to-year basis every CFTI sector – pipelines, sea freight, road freight, storage and inventory handling, rail freight and air freight – shows negative growth, although not as significant as was previously experienced.

Also, the three months ending in October this year compared with the three months ending in July this year show visible improvements in all sectors, except the pipeline sector.

That being said, the pipeline sector had a near record month in October following two exceptionally weak months, so that recovery is certainly on the horizon, says the newest CFTI report.

The index shows that real pain is still being felt in the air-freight sector, while sea-freight and particularly bulk cargo, in both the rail- and sea-freight sectors, had a terrible October.

The CFTI shows that container imports are still well below normal and tracking more than 23% lower compared with last year. 

Container exports were down 9% during October.

Global air-freight volumes were also still 47% lower than a year ago. There is some improvement, driven by East Asia and North American markets, but the year-on-year numbers still indicate massive declines. 

Closer to home, the total air-freight kilometres flown in Africa improved by 8.2% compared with a year ago. 

Locally, air freight is still below levels seen in 2019, but it is recovering, while international air freight has shown a slight increase too. 

The CFTI indicates that higher-value freight appears to have been more significantly affected by the lockdown compared with bulk goods such as fuel, iron-ore and coal.

“These higher-value goods such as cell phones and cars have experienced a decline in sales, but they are expected to bounce back in the coming months.” 

 

Edited by Creamer Media Reporter

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION