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Opportunity Issue 99

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Opportunity magazine is a niche business-to-business publication that explores various investment opportunities within Southern Africa’s economic sectors and looks to provide its readers with first-hand knowledge about South African business. Opportunity also looks to present South African business to international markets that may have interests in investing in South Africa. The publication is endorsed by the South African Chamber of Commerce and Industry (SACCI).

LOGISTICS Ultimately,

LOGISTICS Ultimately, the danger is most severe for the small business entrepreneur and South African consumer as we feel yet more financial pressure and are left to deal with the increasing cost of products we rely on. An opportunity “It is a wonderful opportunity for us as South Africans to rethink our position and perhaps become more technically orientated, pour more resources into becoming again more manufacturing orientated and build a more diverse local economy that is not so reliant on imports for our survival,” says Schroeder. As our economy struggles under the strain from the pandemic, we should work together to consider longer-term strategies to help protect us from increased consumer debt and decreased consumer savings in the future. Invest in our local economy and become more conscious of what and how we consume to mitigate the price increases that are out of our control. “When the initial cost of a container goes up, it causes a chain reaction whereby the price of shipping commodities also increases,” says Schroeder. In hindsight, the price of containers did need to be adjusted as they were significantly undervalued as a trading commodity and it is positive that container factories are realising their worth in the global logistics market. Some have predicted that there will be a levelling out of the cost around the end of 2021 but as long as the demand for containers remains so strong, that is far more likely to be achieved in the first quarter of 2022. The downside is that as consumers we are left to shoulder the increase. Container rentals and freight rates Also impacted are the leasing terms of second-hand containers as the price of new containers directly determines the level of second-hand prices. This inevitably leads to a global increase in price. Compared to last year when a new 20-foot general-purpose shipping or freight container was approximately 100, this year’s price stands in excess of 700 per container. “When the capital outlay to purchase a second-hand container is higher due to the original owners needing to cover their cost, companies like CIT are forced to increase rental rates to cover the increase,” says Schroeder. The shipping lines were placed in a position where they needed to claw back the additional costs of the containers by renegotiating freight rates. Many of these lines have leveraged their necessity and begun running at half their capacity for a far superior freight rate. This has led to even some historically problematic shipping lines declaring a profit for the first time in decades. “We see many shipping lines seizing the opportunity and capitalising on the necessity of their continued operation to the livelihoods of consumers and businesses alike,” says Schroeder. About CIT Intermodal Container Intermodal Trading CC trading as CIT Intermodal was established in June 2007 with the express aim to provide a better all-round containerisation service. By providing containers at the best competitive and market-related prices without compromising quality or service, they maintain unprecedented customer satisfaction. The CIT Intermodal management team have a number of years’ experience in the container and intermodal industry. As of May 2016, they have been the agent for Blue Sky Intermodal (UK) Ltd, an international marine container and intermodal leasing company providing containers and related equipment on operating and finance leases. In 2017 CIT Intermodal won top honours at the ECIC/Cape Chamber of Commerce Western Cape Exporter of the Year Competition in the “Non-Engineering/Manufacturing Company” category. 20 | www.opportunityonline.co.za

CLI AG is an international transport and logistics company headquartered in Hamburg. We supply customers of various industries and retail segments with tailor-made solutions for logistics that meet the highest standards. For any task that requires an exceptional level of sensitivity, professionalism and trust, you are in the right hands with CLI. We implement transport and logistics solutions that precisely match your business and your customers’ requirements. We call this concept “customized logistics ideas”. We work extremely efficiently, directly and reliably. Our services include: • Project Cargo • Road Freight • Freight Forwarding • Mining Machinery & Resupply Logistics • Customs Clearance • Cross Border For us, presence is more than a pin on the map. Whether in Cologne or Cape Town, we shorten routes to your new customers and new sales markets. We open doors for you and support you with regional transport and logistics tasks from 16 locations. Welcome to the world of CLI. Welcome to Germany, France, South Africa, Ghana, Mozambique, Namibia, Canada and the USA. For business customers or end users, partial or full loads, project or general cargo, we have the right transport solution in our range for all large and small shipping tasks. This means that heavy and bulky shipments arrive at your customers just as efficiently as light and fragile ones. From order logging to route planning and freight cost accounting, we are on the move for you with up-to-date standards and all the certificates you need for transport. With seamless shipment tracking. And with drivers who know what matters. Do you want to transport complete industrial plants, modules weighing many tonnes, wind power turbines or sensitive goods? Our comprehensive specialist knowledge, country-specific know-how and direct line to authorities pave the way for demanding, large-scale projects that require high levels of skill and experience. CLI is the ideal service partner for machine and plant manufacturers, mine operators and heavy industry in selected regions of the world, including Sub-Saharan Africa. Contact us for your Customized Logistics needs: sales.za@cli.ag / 086 126 6727 FN9126 www.cli.ag

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