Capital Equipment News December 2023

LOGISTICS MARKET REVIEW

A comprehensive look at the transport, freight and logistics industry shows there should be caution going into 2024, but there is a silver lining in some of the subectors.

How transport and logistics performed in 2023

In the past few months transport, freight and logistics have suffered due to many failures which included port backlogs, ageing road and rail infrastructure, load shedding and many of the same ills that are currently faced by all sectors in South Africa. But there has been a silver lining, starting with the fact that, compared to 2022, the Ctrack Transport and Freight Index is tracking 2.8% above year-ago levels. F ollowing four consecutive monthly contractions in 2023, the final Ctrack Trans port and Freight Index for the year defied expectations to record growth during October. At an index level of 120.7, the Ctrack Transport and Freight Index is tracking 2.8% above year-ago levels. While the improvement at the start of the fourth quarter is encouraging, a note of caution is appropriate as the strain that has been evident across multiple sub-sectors in recent months has not disappeared and, in some instances, is expected to escalate. However, the positive growth in the overall index during October showcased the interdependence and intertwined nature of the logistics sector, where the underperformance in one sub-sector typically leads to growth in another.

"The transport and logistics sector is of utmost importance to the South African economy. The inability to effectively move products to and from markets comes at a cost, which is negative for the whole economy."

Stinted growth Fragmented growth among the Ctrack Transport and Freight Index sub sectors remains an ongoing theme of late. Four of the six sub-sectors increased compared to a year earlier, while on a monthly basis, only Sea Freight contracted. “A brief look at the overall Ctrack Transport and Freight Index could give

Hein Jordt, Chief Executive Officer of Ctrack

TALKING POINT

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CAPITAL EQUIPMENT NEWS DECEMBER 2023