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Africa|Business|Freight|Logistics|Pipelines|Ports|rail|Resources|Road|Storage|Transnet|transport
Africa|Business|Freight|Logistics|Pipelines|Ports|rail|Resources|Road|Storage|Transnet|transport
africa|business|freight|logistics|pipelines|ports|rail|resources|road|storage|transnet|transport

Recovery in logistics sector continued in May – Ctrack index

5th July 2024

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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The newest Ctrack Transport and Freight Index (Ctrack TFI) shows that the recent recovery in South Africa’s logistics sector continued in May, albeit at a slower pace.

The index improved in May to reach a level of 125.6 – an increase of 1.7% compared with April’s level, and 2.5% above year-ago levels.

This marks the third consecutive monthly increase in the index and could be an early signal that the transport sector’s contribution to overall economic growth could move into positive territory in the second quarter, notes the index report.

On a monthly basis, three subsectors increased in May, led by air freight, which was up 5.5% on April, and the heavy-weighted road-freight subsector, up 2.7% on April.

Compared with a year earlier, five of the six subsectors increased during May, while only the pipeline transport subsector declined.

The air-freight subsector has been a star performer among the subsectors since the start of this year.

Comparing May’s index level to December last year, there is a notable increase of 15.4% in air-freight activity.

The subsector increased by 5.5% in May, the fourth consecutive monthly increase, reaching the highest index level on record, while on a quarterly basis, the sector is up 18%.

Following a horrendous month for the sea-freight subcomponent in April, the sector bounced back in May.

Overall, for all ports in South Africa, the number of containers that landed increased by 14.5% in May compared with a 17.9% drop in April, and the number of containers shipped shot up by 45.5%, following a 32.5% drop in the month before.

Other cargo handled (excluding vehicles) also increased by 12.4% in May, following a decline of 11.6% in April.

For the year-to-date, sea freight is up 5.4% on the corresponding period in 2023.

The heavily weighted road-freight subsector, which has grown notably in recent years to now account for 83.6% of all freight payload in South Africa, recovered further in May.

This is the sector’s third consecutive positive monthly growth rate following a downward trend that lasted almost a year.

Road freight increased by 2.7% on a monthly basis in May vs 4.5% in April, and is up 8.6% on a quarterly basis.

The Ctrack TFI shows that the rail-freight subsector lost a bit of ground in May; however, it is continuing its “very gradual recovery overall”.

For the first five months of the year, rail freight increased by 11% compared with the corresponding period in 2023.

The storage-and-handling subsector of the TFI declined further by 1.1% on a monthly basis in May, and remained only 1.6% above year-ago levels.

Lastly, the transport of liquid fuels via Transnet Pipelines increased by 0.2% in May compared with April, but still declined by 0.3% and 2% on a quarterly and yearly basis, respectively, partly reflecting the sluggishness of the economy.

“In the last two years, since the establishment of the National Logistics Crisis Committee, backed by the business sector's resources and expertise, a new form of collaboration has developed between the public and private sectors, facilitated by the efforts of the Operation Vulindlela team,” says Ctrack CEO Hein Jordt.

“While notable progress has been made in pursuing the reform agenda, it is of utmost importance that the new government continue and accelerate the efforts, in the interest of the economy as a whole.”

 

Edited by Creamer Media Reporter

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