South Africa Logistics Industry Research Report And Industry Outlook: Ken Research

South Africa Logistics Market:-

By Domestic And International, 2018:-

International movement is less than Local movement of goods: Cold Transportation within the country generates more revenue than through the international market. For transporting the commodities from one part of the country to the other, road transportation is both effective and affordable. The cold chain market is not much developed in the country to meet the international demand on par with local demand of the country.

Cold Chain market is less developed: Cold Chain market is still in the development stage and conducting international movement efficiently is still a challenge.

By Type Of Market, 2023E:-

Cold Transport:-

Growth in the retail sector to contribute for the growth: Along with the rise in supermarkets, retail sector, FMCG sector and pharmaceutical sector, the cold transport demand will also increase making a positive impact on the market.

Cold Storage:-

Rising demand for cold storage facilities: Rapid growth of quick-serve restaurants and large supermarkets plus the need to reduce food waste are fueling the growth of cold storage facilities around the world.

By Application, 2023E:-

Growth in the demand for meat: The existing infrastructure to support the growing demand for meat, especially chicken which is mostly being imported is not enough. Therefore more cold storage facilities are being planned and constructed in different parts of the country. With the growth in the storage capacities and rising operations, the business for the cold chain market will grow during the next five years.

Lower share of dairy products: Demand for dairy products has reduced in the last few years and the trend will continue to reduce the demand for dairy based products due to rising retail prices in the country. Moreover, the prices in recent years of animal feed have risen which shall impact the dairy sector in the coming years.

Market Size 2013-2018:-

Majorly used by businesses: Express delivery services are largely used by the businesses to deliver goods within a specific time frame which is usually less than or equal to 72 hours.

Growth Drivers: The gradual shift of the population from retail shopping to online shopping of electronic items, high internet penetration, daily grocery needs, apparels and others in the country has triggered the demand for express logistics in the country.

Fast Growth in the express delivery market: The express delivery has grown at a fast pace due to the fast delivery and hi tech technologies. It has attracted many international players in the market such as DHL, DSV, FedEx- TNT and others.

New strategies are being deployed by the companies: The express logistics market has grown rapidly in the past five years since new strategies are being deployed by the companies in order to compete in this space.

By International And Domestic Express, 2018:-

Change in consumer preferences: The increasing purchasing power of people and improving lifestyles have encouraged people to choose express delivery services rather than normal. High growth in the country’s Retail and FMCG sector has also augmented the domestic market demand.

Growth in the Ecommerce industry: With the growth in the E commerce industry, consumers have started preferring the online platform for a category of commodities such as food and beverages, clothing, meat, etc. This has led to a demand for express delivery.

By International Express:-

International express requires quick delivery which can be done through air cargo: The express logistics implies same day delivery or delivery within 2 days and to be able to transport the goods from one country to another in a short interval, the logistic companies prefer air cargo which takes few hours to transport the products as compared to ground logistics, especially for the international express services.

Investment in Infrastructure: Although Air Express occupies a much smaller share than ground express, there have been a few developments in the airports which have allowed air express to improve over the last few years. Up-gradation of major airports such as Cape Town International (CTIA) and OR Tambo International Airport is one of such measures. These developments however are not sufficient. The South African aviation sector is growing rapidly, but the infrastructure needs to evolve at the same pace.

By Domestic Express:-

Road transport charges are much cheaper than air transport for the same distance, although the latter takes much less time: Ground express logistics remains an important means for transport of documents and parcels through vans and trucks in the domestic market. Furthermore, road transport express service charges are comparatively cheaper but take longer time in comparison to air express so less urgent deliveries are preferably sent using road transport but next day deliveries are managed by air express only.

Domestic players have shifted from air to ground transport: In order to cut their transportation costs, many South African companies were observed to shift from air transportation to road in the domestic market.

Higher fuel prices for air transport: The high cost of air express is further raised by high fuel prices. This makes road transport more affordable for the companies to conduct domestic express delivery.

BY B2B, B2C and C2C:-

Dominance of B2B Market Structure: B2B dominated the express Logistics market in terms of revenue in South Africa during the year 2018.

Majorly used by businesses: Express delivery services are largely used by the businesses to deliver goods within a specific time frame which is usually less than or equal to 72 hours.

B2B Market: The consignments to be delivered in this segment are majorly in large quantities. Bulk quantity coupled with multiple B2B companies operating in this space is the key contributive factor for such a high revenue share.

Major Products in B2B: The major products shipped in B2B include Courier and parcels, trade samples, contracts and other goods which are time sensitive. B2B express logistics provides door to door deliveries of the product along with the facility of tracking an item or consignments.

B2C Market: B2C includes deliveries made from businesses to a customer which forms the base for the e-commerce industry in the country.

Rise in the E-commerce industry: The growth in the E commerce has largely contributed to the considerable share of B2C segment in the industry.

Key Segments Covered:-

South Africa Freight Forwarding Market

By Mode of Transport

Road Freight

Rail Freight

Air Freight

Sea Freight

By International and Domestic Freight

International Freight

Domestic Freight

By Flow Corridors

Asian Countries (China, India, Taiwan and Japan)

European Countries

Middle East

North America

African Countries

By 3PL and Owned

3PL Logistics

Owned Logistics

By Type of Delivery

Normal Delivery

Express Delivery

South Africa Warehousing Market

By End User

Consumer and Retail

Food and Beverages

Healthcare and Pharma

Automotive

Others (Dangerous Goods, Chemicals and Paints)

By Business Model

Industrial/Retail

Consumer Freight/Inland Container Depot

Cold Storage

By 3PL and Owned

3PL Logistics

Owned Logistics

By Region

Johannesburg

Durban

Cape Town

Port Elizabeth

East London

South Africa Cold Chain Market

By Type of Market

Cold Storage

Cold Transportation

By Application

Meat and Seafood

Fruits and Vegetables

Dairy Products

Bakery and Confectionary

Pharmaceuticals/Healthcare

By Ownership

Owned Logistics

3PL Logistics

Cold Storage Market Segmentation By Temperature of Storage

Ambient

Chilled

Frozen

By Regions

Johannesburg

Durban

Cape Town

Others

Cold Transportation Market Segmentation By Type of Possession

Owned Logistics

3PL Logistics

By Mode of Transportation

Sea

Land

Air

By Location

Domestic

International

South Africa Express Logistics Market

By International and Domestic Express

International Express

Domestic Express

By Type of Express (International)

Air Express

Ground Express

By Type of Express (Domestic)

Air Express

Ground Express

By Market Structure

B2B

B2C and C2C

South Africa E Commerce Logistics Market

By Delivery Time Duration

1-2 Working Days

3-5 Working Days

More than 5 Working Days

By Express/Normal

Express Delivery

Normal Delivery

By Merchant/3PL

3PL

Merchant

South Africa Outsourced/3PL Logistics Market

By Market Type (Freight Forwarding and Warehousing)

Companies Covered:-

DHL

Imperial Logistics

DSV

DB Schenker

Barloworld Logistics

DPD Laser Express Logistics

ID Logistics

OneLogix

CEVA Logistics

City Logistics

Cargo Carriers

Kargo Logistics

Vital Distribution

ACT Logistic

Santova Logistics

GMA Logistics

Kuehne Nagel

Key Target Audience:-

Logistics Companies

Warehousing Companies

Freight Forwarding Companies

Express Logistics Companies

E-Commerce Logistics Companies

Outsourced Logistics Companies

E-Commerce Companies

Cold Chain Logistics Companies

Companies seeking logistics Services

Time Period Captured in the Report:-

Historical Period – 2013-2018

Forecast Period – 2019-2023E

Keywords:-

South Africa Logistics Industry

South Africa Logistics Market

Logistics Market In South Africa

Logistics Industry In South Africa

South Africa Logistics Market Trends

South Africa Logistics Market Shares

South Africa Freight Forwarding Industry

Warehousing Space South Africa

South Africa Rail Freight Cost

South Africa Logistics Cost

Distribution Market Logistics South Africa

RORO Volume South Africa

Container Freight Market South Africa

Logistics Industry In South Africa

Dry Bulk Cargo Volume South Africa

Export Import Transportation South Africa

South Africa Cold Chain Industry

South Africa Express Logistics Shipments

CEVA Logistics South Africa Market Revenue

Logistics Market Challenges South Africa

For more information, refer to below link:-

South Africa Logistics Market

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Thailand Logistics and Warehousing Market Outlook to 2022 – By Service Mix (Freight Forwarding, Express Logistics, E-commerce Logistics and Warehousing Services)

Indonesia Logistics and Warehousing Market Outlook To 2023 – Driven By Infrastructure Spending For Airport And Seaports Albeit By Poor Existing Road Network

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