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Ever wondered what the total value of parcels being transported across South Africa via delivery and couriers companies are worth? Or what the total value of goods inside big shipping containers being transported on trains and trucks are worth? Well we take a look at both these questions in the article below.
Date obtained from Statistics South Africa's land transport survey |
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Value of goods in containers and parcels
The line graph below shows the total rand value of goods transported in South Africa via containers and parcels per month.
For 2018, the average value of goods being transported via containers and parcels amounted to R662 million and R206.25 million respectively. Over the last two years, the Rand value of goods shipped via parcels have remained relatively flat, with no real growth in the value of goods being shipped and sent via parcels. Margins for courier companies must be pretty thin as there are a lot of them fighting over a market which doesn't seem to be growing. And add to that increasing fuel prices, and one wonders if a few of these courier companies operating now will still be with us in a few years time. Our prediction is that the sector will lose a few of the courier companies operating now. Some will disappear via mergers and acquisitions and others will fall out of the market as bigger players squeeze the margins of the smaller guys to the point where the smaller firms cant operate profitably anymore.
The value of goods transported in containers showed significant growth over the last couple of years though. And perhaps smaller logistics firms active in the parcel delivery space, should look to diversify their service offering to include transporting containers, as it looks like the value of goods transported via containers is still growing strongly.
Sadly for private companies and South Africans a large number of the containers transported is transported by State owned entity , Transnet, which basically has a monopoly on SA's rail roads and can therefore charge what they want to transport containers from harbors and ports to offset points. Increased competition in this space would allow for lower prices, which will benefit all consumers.
The value of goods transported in containers showed significant growth over the last couple of years though. And perhaps smaller logistics firms active in the parcel delivery space, should look to diversify their service offering to include transporting containers, as it looks like the value of goods transported via containers is still growing strongly.
Sadly for private companies and South Africans a large number of the containers transported is transported by State owned entity , Transnet, which basically has a monopoly on SA's rail roads and can therefore charge what they want to transport containers from harbors and ports to offset points. Increased competition in this space would allow for lower prices, which will benefit all consumers.