The industry is under massive strain with the Covid-19 pandemic, and the shipping backlog, and logistics industry, is still under pressure.
The issue of global lockdowns created a shipping container backlog on continents. Ships did not return the empty containers from North America to the Asian countries that shipped the required supplies and products.
The shortage of various goods in retail stores is just the beginning. Now, the backlog of container ships in multiple ports worldwide is the cause of the delays in products being delivered to stores. The expensive delays mean that even large shipments and project cargo, like renewable energy wind blades, for example, halt the production of wind farms.
Factories and manufacturers now sit with a delay in the services they offer because machinery or parts do not arrive.
Apart from the delivery backlog, ships, staff, and fuel expenses are adding up. The additional costs now get moved to the consumer. While retail and the cost of living are skyrocketing, the government increased taxes, and fuel is causing more strain on the general consumer.
The opportunities that can present themselves for small and medium enterprises in the import and export business are under strain. The shipping backlog and subsequent increase in shipping costs mean products are too expensive for the consumers, and sales are dwindling. The rise of the SMME in South Africa over the last two years is seeing a decline in profits. It is not a viable situation for the country and the economy.
Local logistics Company Access World, with offices worldwide, has to be more inventive while trying to keep costs down for customers. They manage the shipping backlogs with their clients by moving shipments to other ports in the area. Their Asia office can re-route shipments to other regional ports and then overland the products to the customer.
With any crisis, there is innovation, and this crisis is no different.
The companies that find the solutions and plan for customers are the businesses that last the storm.
The learning is not just to accept the status quo but to look for opportunities and alternative solutions. The innovator is the small business that will survive.
Bizcash is an alternative fintech funding company that works alongside South African SMMEs to grow their business. When you need to access funding, speak to our team today to see how we can help your business.
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