South Africa has risen to 23rd place in the Agility Emerging Markets Logistics Index, marking significant progress in international logistics opportunities and digital transformation initiatives, according to the latest Cargo Movement Update.
This improvement highlights growing confidence in the country’s ability to manage efficient supply chain operations in an increasingly dynamic global landscape.
The Update, compiled by the South African Association of Freight Forwarders and Business Unity SA, also notes ongoing concerns about the country’s transhipment capabilities.
While regional transhipment has seen improvements, South Africa continues to face challenges in strengthening its role as a key hub for sub-Saharan Africa.
Increased cargo volumes at regional hubs are vital to enhancing port competitiveness and supporting intra-African trade under the African Continental Free Trade Area (AfCFTA).
Experts point out that infrastructure bottlenecks, regulatory obstacles, and capacity limitations continue to hinder growth in the sector.
Globally, supply chain strategies are evolving. A recent survey found that 54% of logistics professionals plan to reduce their reliance on China by 2030.
This shift is driven by geopolitical tensions, the need to diversify manufacturing bases, and the demand for more resilient supply chains.
This trend presents opportunities for emerging markets, including African nations, to establish themselves as alternative sourcing hubs.
In the liner trade, Drewry’s Global Container Port Throughput Index recorded a slight month-on-month decline but showed year-on-year growth.
African ports saw a modest uptick, driven by improvements in terminal operations and regional trade flows. However, these ports continue to face strong competition from their global counterparts, emphasizing the need for further investment in port infrastructure and technological advancements.
Meanwhile, the United States is contemplating imposing significant tariffs on Chinese-built vessels, which could disrupt established trade routes and push carriers to seek alternative sourcing options for fleet expansion. Experts warn that such measures could lead to volatility in shipping markets and increase costs for shippers.
Container freight rates are continuing to decline, prompting carriers to offer discounts on long-term contracts.
While additional capacity may limit substantial rate increases, carriers are working hard to maintain pricing discipline through strategic contract negotiations. Global port congestion remains stable, with approximately 8% of the fleet facing delays.
To manage these challenges, carriers are adjusting schedules and adopting digital solutions to enhance operational efficiency.
As global supply chains continue to evolve, South Africa’s focus on infrastructure upgrades, policy reforms, and digital innovation will be crucial in seizing emerging logistics opportunities.
Strengthening transhipment capabilities and aligning with regional integration efforts will be vital to maintaining the country’s upward trajectory in the logistics sector.
