Clint Penney

Clint Penney

Carbon emissions legislation pushes up costs

In the final quarter of 2023, a decrease in import volumes is anticipated due to diminishing demand for goods. This decline in consumer spending comes as rising living costs influence the economy. Kreeson Moodley, trade lane manager at SACO CFR, said the reduction in import volumes was evidence that consumers were tightening their purse strings amid cost-of-living increases, which included rising prices for essential goods and services."Economic uncertainty, high percentages of inflation and increased costs are placing a strain on people’s livelihoods, which is resulting in reduced consumer spend and lower demand for products."And as consumer spending dwindles, businesses are adapting their import strategies.

No respite likely from high freight rates

With the perishable season in full swing, the airfreight industry is experiencing a notable surge in congestion on the export side, leading to concerns about the timely and efficient transport of fresh goods to international markets. Cape Town, in particular, is grappling with a significant increase in export volumes, making it increasingly challenging for businesses to secure cargo space at reasonable rates.