Challenging times for the Transport Industry

In the absence of alternative options, road freight remains the heartbeat of our economy.?Businesses and consumers alike rely heavily on the transport industry.?

Even more so since COVID as many consumers now make use of online shopping which opened a whole new market in the industry.??Consumers now have convenience at their fingertips.

However, the industry faces a whole set of challenges that influence both the businesses that rely on road transport right down to the consumer’s pocket.

Again and again, we brace ourselves for yet another fuel increase due to the rising of crude oil prices and the deprecation of the rand against the dollar.

The rise in fuel prices extends to so much more than just the price of fuel it has a significant role in the cost of maintaining these vehicles.

Infrastructure is vital to the survival of our economy.?Bad road conditions are a major cause of fatal accidents. ?Add to the road conditions, fatigue, and the lack of skilled drivers and you have a recipe for disaster.

?The lack of skilled workers remains one of the biggest challenges in South Africa. Many companies are making use of foreign drivers which brings its own set of challenges.?Fake licenses to name only one.??It is difficult to differentiate between a legitimate license and a fake one. An estimated 75% of PrDp’s and 30% of driver’s licenses that are validated are found to be fraudulent.

Technology makes it easy for certain employees to work from home.?This opened a whole new problem as we have seen the number of ransomware attacks increase since the start of the lockdown.?Most transportation companies do not employ large security teams to protect themselves from cyber-attacks, leaving a whole lot of companies vulnerable to cyber criminals.

Add to the mix the rise in hijackings, vehicle, and cargo theft, and the infamous Zuma riots of July 2021 only added fuel to the fire had resulted in astronomical increases in the SASRIA premiums. ?

When looking at all these additional costs transporters are expected to absorb, it has become evident that it is vital to source more cost-effective insurance solutions for both their trucks and the cargo that they carry.

Although some of these challenges are out of our control like the rising cost of fuel, however, we can get more creative in how we look at insurance for instance.?Invest in training and development to combat the lack of skilled employees.

All these challenges are linked and add to the cost of transport which ultimately affects the consumer and the overall cost of living.