BUSINESS FLEET AFRICA | September 2022
WWW.BUSINESSFLEETAFRICA.CO.ZA
TRansPoRT anD fReIGHT InDeX
The logistics sector of South Africa
recovered further during the month of
July, following three months of subdued
overall activity. This is according to the
Ctrack Transport and Freight Index,
which closely tracks six sub-sectors of
the logistics sector for a true reflection
of the industry.
The Ctrack Transport and Freight
Index (CTFI) grew by 1.7% in July
compared to June, which represented
an 8.7% improvement compared to a
year ago, notably up from June’s revised
4.9% year on year growth rate. The July
index is therefore just marginally below
March’s pre-flooding level. The annual
comparison is, however, influenced by
a low base of comparison, as the July
2021 CTFI reflected pressures caused by
riots in KZN and Gauteng as well as the
COVID-19 restrictions that were still in
place at the time.
Many challenges remain for the
sector and the economy in general,
including high fuel prices, rising interest
rates and the negative impact of regular
load shedding. However, vastly different
trends are evident when zooming into
the different sub-sectors of the industry.
Four of the six components that make up
the Ctrack Transport and Freight Index
increased on an annual basis during July,
with the star performer once again be-
ing Pipeline transport, followed by Road
and Air Freight. Sea Freight activity also
recovered further in July and moved into
positive territory, with annual growth of
0.6% year on year compared to -10.6%
in June.
The remaining two components
declined, with the biggest contractions
evident in Storage and Handling and Rail
Freight. Rail Freight has been declining
for four consecutive months, reflecting
on going challenges in the sector.
“While there are a number of external
factors that continue to put the logistics
industry under pressure it seems like we
have reached some kind of new normal
and it is heartening to see that the
majority of sub-sectors measured by the
Ctrack Transport and Freight Index are
recording good growth,” said Hein Jordt,
Chief Executive Officer of Ctrack Africa.
The airline industry and Air Freight
were proportionally harder hit than
other sub-sectors of the logistics
industry during the COVID-19 pandemic.
In the midst of hard lockdown around
the second quarter of 2020, economic
activity plummeted, and movement of
passengers and freight was restricted to
the bare necessities. While the sector
has recovered to pre-COVID levels, it
generally underperformed compared to
the overall logistics sector in the post-
COVID time period.
The Air Freight component of the
Ctrack Transport and Freight Index
increased by 12.2% in July, compared to a
year ago, but dropped by 4.1% compared
to June, signalling that some pressure is
building. The aviation industry suffers
from a severe lack of capacity after the
demise of Comair, which at the time of
its collapse in June had a market share
of about 40%. Including kulula.com and
BA-franchised aircraft, Comair’s total fleet
size at the time of termination was 26
aircraft. Airline ticket prices have already
increased substantially in the last few
months and could increase further due to
higher fuel costs and increased demand
for seats during the festive season. This
could impact negatively on both the
hospitality industry’s long-awaited post-
COVID recovery and the wider economy.
Total consolidated airport flight
movements (passengers and freight)
increased by a significant 64.2% year on
A welcome recovery for the
South African logistics sector in July
Graph 1 Ctrack Transport and Freight Index % change on year ago
Graph 2 Ctrack Transport and Freight Index components (% change on year ago)
30
–22.8
–11.0
0.6
12.2
25.3
26.3
Storage
Rail freight
Sea freight
Air freight
Road freight
Pipeline
–30
–20
–10
10
20
–30%
–20%
–10%
0%
10%
20%
30%
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Jan-17
Apr-17
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
8.7%
4.9%
4.3%