Durban — SA Association of Freight Forwarders’ (SAAFF) research shows that logistics delays to the supply chain cost the South African economy between R100 million and R1 billion per day.
Transnet employees embarked on strike action on Thursday over demands for pay increases bringing ports to a standstill.
According to the latest Sars merchandise stats, R343 billion worth of goods were traded (imports and exports) by the country in August, SAAFF CEO, Dr Juanita Maree, said.
The impact is more than the country can absorb, given the current economic climate, added Maree.
From the perspective of the clearing and forwarding industry – the workhorses of making the merchandise trade tick, Maree said the following aspects were apparent:
• The economic extent of this action is not fully understood by decision-makers.
• The unintended consequences of the port strikes will be far worse than the country’s energy crisis if left unattended, as the shock to the economy could not have come at a worse time.
• Neither Transnet nor labour seem to understand the full extent of the damage: Simply put, we cannot run on a contingency plan for any length of time, as the waterside and landside are too integrated and spill over into one another.
• A one-day loss in port activity results in operationally a minimum of 10 days of recovery.
However, the economic loss has a ripple effect on the economy, resulting in further foreign revenue loss at a time when the balance of trade is steadily deteriorating.
Maree said if the country and the government do not have money now, they will have much less in seven days’ time. “The strike is throttling our economy to the point of no return.”
BerriesZA spokesperson Thabi Ndhlovu said the strike threatened 30 000 jobs in the berries industry and occurred during the peak of the berry export season.
Ndhlovu said the strike action followed the impact of ongoing operational issues at the country’s ports as a result of ageing and out-of-service infrastructure, inefficient systems and staff shortages.
“Delayed shipments, as a result of the poor port performance, has affected the quality of berries that reach international markets, resulting in product rejection rates from receiving clients sky-rocketing to an unprecedented quarter of a billion rand last year,” Ndhlovu said.
South African Transport and Allied Workers general secretary Jack Mazibuko called for an intensification of industrial action on Monday.
“The negotiating team has worked inexhaustibly. The employer is fixated on accumulating profits at the expense of equitable and fair distribution of wages.
“Our industrial action is not only about wages but it is a broader struggle for social, economic and political transformation in favour of the working class,” Mazibuko said.
Transnet SOC Ltd spokesperson Ayanda Shezi said since tabling an initial offer, Transnet made efforts by improving its wage offer on a further four occasions, in spite of the operational and financial challenges facing the organisation.
Shezi said Transnet was not in a position to predict the turnout of the strike or its potential impact on operations but remained committed to discussing the revised offers.
Daily News