Effective logistics network facilitates access to Africa’s opportunities
Managing Director of DACHSER South Africa, Detlev Duve, says that while the Africa business is still a small part of the global logistics provider, the region offers great growth opportunities for DACHSER and its clients. “Logistics services are becoming the engine of economic growth in Africa. Despite major infrastructural and other challenges, we are able to provide our customers with access to the African markets and we are seeing future changes that bode well for increased trade in the region, including the development of trade corridors.”
With current estimates indicating that trade volumes in sub-Saharan Africa will more than triple from 102.6 million tonnes in 2009 to 384.0 million tonnes in 2030, if the trade corridors are completed, Africa offers enormous opportunity. US$ 28 billion dollars is being invested in the development of major Trans-African road and rail corridors and deep-sea ports. Sub-Saharan Africa is home to some of the fastest growing economies in the world, with growing investment from international companies. In conjunction with energy and communications infrastructure, efficient transport and logistics infrastructure is fundamental to operational success for these companies.
The DACHSER network in Africa includes strategically positioned partners in growing markets throughout the continent including Nigeria, Egypt, Kenya and Ghana. In Algeria, Tunisia and Morocco, DACHSER has been present with its own country organizations for decades. Closer to the South Africa office, there are DACHSER agents in neighbouring countries Namibia, Mozambique and Zimbabwe, as well as Angola and Mauritius.
We have already seen a major increase in our cross-border projects and a growing need for road freight into Africa, with international importers continuing to use South Africa as a natural gateway into sub-Saharan Africa.
Detlev Duve, Managing Director DACHSER South Africa
Duve says, “For example, we are getting more requests to transport goods from China into African countries such as Malawi, Zambia and Zimbabwe via the major port in Durban.”
DACHSER South Africa as a global partner
A supply chain partner that offers the scale, network and expertise to deal with increasing trade is a great asset. “DACHSER South Africa is a global partner that is able to meet the challenges of African trade as a trusted partner in the supply chain,” concludes Duve. “Our 40 years of experience have given us a deep understanding of the complex challenges of logistics in the African environment, enabling us to add enormous value to companies with an expansion strategy into African markets.”
New custom fleet enhances DACHSER South Africa capabilities
DACHSER South Africa has expanded its Johannesburg-based road freight fleet with eleven new Hino trucks, further enhancing the companies road freight capabilities through Africa. Over the next few months, the vehicle fleet in the company’s Cape Town office will also be expanded. Growth in demand and delivering on the specialised needs of clients is driving the expansion of the South African operation of the international logistics leader as the country emerges from the challenges of the pandemic.
“We’re excited to extend our fleet of Hino trucks, which are robust, reliable and have sophisticated in-vehicle technology that makes them an ideal tool in the integrated logistics solutions we offer for customers,” says Detlev Duve, Managing Director of DACHSER South Africa. “Our decision to purchase these trucks, ranging from 4-ton to 15-ton vehicles and including flatbeds, tautliners and pantechnicons, was based on Hino’s proven track record for manufacturing high-quality, reliable vehicles. They are factory-fitted with all the creature comforts that make the driver's experience much more enjoyable, so that they can focus on providing the best service possible.”
Two of the new vehicles have been custom built for specific client needs, reflecting Dachser South Africa’s commitment to tailoring logistics to meet specific client requirements as a valued strategic partner. To meet the needs of the solar, heavy office equipment and medical industries, the trucks are equipped with tail lifts and cantilevers. This makes deliveries to smaller premises easier and safer, where forklifts are not always available. All vehicles are hazardous goods compliant and fitted with cameras and tracking devices to optimise track and trace capabilities.
“Our strategic goal has always been to work closely with our clients to ensure that we put structures and services in place to fit their needs, whether it be in the warehouse or on our vehicles. We build our longterm client relationships this way,” says Duve.
DACHSER South Africa has been providing a highly competitive road freight service for over twenty years, including over-border consolidation and full truckload services. The company provides general road, air and sea freight transport, supplemented by specialised transport services for industry-specific materials including foodstuffs, chemicals, spares and bulk mining machinery.
Road freight in Africa can pose clear challenges and logistics companies must be prepared to be competitive, according to Duve. “Transporting goods throughout the continent requires a strong fleet, an established network of support partners, a team that has up-to-date information on multi-country customs and border control changes or requirements, solid tracking processes, and hands-on knowledge of diverse infrastructures and the challenges they may present.”
A successful road freight service is one that is well coordinated and planned from the outset, as well as effectively tracked en route. DACHSER South Africa manages supply chains using its digital, real-time platform to ensure that both the client and the consignee are able to see where the consignment is at all times.
DACHSER South Africa further offers consolidation services where multiple consignments for different, medium-sized companies are transported in one truck, or a fleet of trucks. “Clients need to make sure they are dealing with established providers when it comes to consolidation, as shipments can be severely impeded by the clearing processes and turnaround times of the order from destination to origin,” says Duve. “We pre-empt any challenges through having strict protocols and detailed processes in place, including processing documents at the border prior loading, and getting all shipments released prior to truck arrival and subsequent departure.”
Another value adding service is the company’s full truckload 24-hour notice period. “This essentially means that a client is notified 24 hours prior to loading in order to check the availability of vehicles - a real advantage for our customers,” says Duve.
“With our strong network, we are continuously developing new routes, building our fleet and devising sustainable road freight and logistics processes. By doing so, we are supporting our client’s growth on the African continent and the continued development of Africa’s overall prosperity. It’s exciting to be a part of this growth.”
Step by step toward the goal — Sea freight groupage containers facilitate the continuous flow of goods
In turbulent economic times, sea freight groupage containers are becoming increasingly popular. Production bottlenecks, fragile global supply chains, and a container shortage have further increased the demand for small and predictable shipment sizes in sea freight. Michael Kriegel, Department Head DACHSER Chem Logistics, explains the service that enables a reliable flow of goods in sea freight. He also talks about why a good network connection is crucial, especially for goods with high security requirements.
Companies are already analyzing their global supply chains and increasingly shifting their shipments to sea freight groupage (called “less than container load,” or LCL for short). The big advantage of groupage for customers is that they can ship smaller loads without having to pay for a full container. As a result, they can maintain a continuous flow of goods, even in the event of production bottlenecks, and also respond more flexibly to seasonal fluctuations. LCL containers are often prioritized over full containers in the loading process, which provides an additional time advantage and allows for better planning of transportation times. DACHSER markets what it calls “consolidation boxes” - customers pay only for the space they actually occupy in the containers. In addition, the company plans departures weeks in advance rather than only once production volumes are known. This means that containers, which are still in short supply, can be pre-booked in good time and customers retain flexibility when booking.
Many companies, especially in the automotive, life science, and healthcare industries, have been using groupage shipments by sea for years. But this service is also suitable for the chemical industry, which places particularly high demands on safety and transparency during transport - and thus needs a logistics provider with the appropriate experience. DACHSER is one such provider. It set up a purchasing partnership with the German Chemical Industry Association (Verband der Chemischen Industrie e.V., or VCI) in 2009. This successful alliance for European groupage shipments from Germany was then expanded in 2015 to include air and sea freight. Member companies of the association now benefit from globally standardized core services in the groupage network - transport, warehousing, and IT solutions. All this specialist industry experience has been pooled in the DACHSER Chem Logistics team.
“In shipments from customers in the chemical industry, which sometimes contain dangerous goods, the decisive factor is always safety. We have to protect life, limb, and the environment,” says Claus Freydag, Managing Director DACHSER Air & Sea Logistics Germany. “DACHSER also boasts global dangerous goods expertise in the groupage container segment and covers all LCL-compatible IMO classes in its own network and in its partner network,” he adds. The company’s central dangerous goods management system and its more than 250 regional safety advisors monitor compliance with special regulations governing the transport of dangerous goods. In addition, many DACHSER employees are trained annually in the particular requirements of chemical logistics.
For sea freight groupage, the sea freight team consolidates various LCLs and loads them into a full container. This optimizes utilization of container capacity, which in turn provides the basis for economical transport costs. Maximum utilization also improves transport sustainability while reducing the risk for individual companies at a time when supply chains are fragile. “Ports around the world have been clogged for months, causing significant delays - and making it rare, if not impossible, for shipping companies to stay on schedule. Instead of sending a full container on its way, which can get held up if loading windows are missed, more and more customers are opting for sea freight groupage containers. This reduces their risk by spreading it over several departures and ships and ensures a more timely transport,” Freydag explains.
Intelligent logistics solutions and a strong network are crucial
Demand for LCL services will continue to grow, even apart from the impact of the pandemic. That’s why DACHSER, as a market leader in the German and European groupage market, has also expanded its maritime LCL network to include 70 weekly direct services to and from Germany. “With a focus on the main global routes, we are systematically expanding our dangerous goods capacity as well. This of course means serving the major markets in both the eastern and western hemispheres, such as China, India, and the US,” Freydag says. In 2021, DACHSER shipped around 19,700 cbm of dangerous goods as LCL with customers in the chemical industry. Dangerous goods thus already represent 15 percent of DACHSER ASL Germany’s LCL business. In addition to the usual port-to-port services, DACHSER also operates various direct import services to the hinterland or other European cities. For example, once a week LCL groupage containers travel directly from port locations such as Hong Kong, Shanghai, and Ningbo to ports such as Hamburg and Bremen - but also with direct loading to Frankfurt, Kaufbeuren, Cologne, Munich, Nuremberg, Stuttgart as well as Copenhagen and Gothenburg. Direct loading minimizes the risk of cargo damage and provides additional safety by eliminating deconsolidation at the transit terminal.
Furthermore, this increases profitability and achieves additional lead time advantages by rectifying bottlenecks in the port. “DACHSER’s global network connects all groupage transports on land and water. We link our own sea freight groupage container services to and from Germany to the comprehensive range of services offered by DACHSER European Logistics, thus enabling end-to-end service throughout Europe,” Freydag says. For storage and unloading, DACHSER is increasingly using its own branch infrastructure in addition to the standard container freight stations (CFS) at the ports. When port capacity is limited, companies thus benefit from additional dispatch quality and shorter transit times.
This concept, in keeping with the idea of “everything from a single source” links the European overland transport network with the global sea freight network - a feature that not every company can offer. “Thanks to the end-to-end solution of our LCL product, which goes beyond just sea transport, we can maintain high quality across the aforementioned carriers and offer transparent traceability of the goods,” Freydag adds.
The past two years have seen risk minimization in the global movement of goods become a crucial factor for success. To take full advantage of LCL shipping, it is crucial that pick-up and onward carriage are also handled in an integrated manner, thus ensuring expertise in the safe transport of dangerous goods along the entire transport route.
DACHSER Air & Sea Logistics is extending its charter program on the route between Shanghai and Frankfurt to cover the period from May 2022 to April 2024. This enables the logistics provider to continue to offer its customers reliable transport capacity. DACHSER flies a widebody aircraft between Asia and Europe two days a week, transporting 33 metric tons at a time.
DACHSER’s charter program offers the company’s air freight customers additional capacity they can rely on in their planning—especially now that the trade lanes between Asia and Europe have been hit hard by the lockdown in Shanghai as well as the war in Ukraine and the accompanying sanctions. “Our customers’ demand for charter capacity remains as high as ever,” says Timo Stroh, Head of Global Air Freight at DACHSER. “That’s why we’ve created our own transport network with regular connections between Asia, Europe, and North America: to be able to offer flexible solutions here.”
An option in challenging times
Air freight is also feeling the effects that the current situation is having on the world markets. While capacity was already in short supply before the pandemic, the situation has deteriorated significantly in recent months. The closure of airspace due to the war in Ukraine makes flights about two and a half hours longer. This means they need to carry more fuel, the cost of which has gone up and the weight of which reduces the possible cargo load.
“Operating our own charter connections opens up options for capacity and gives us a degree of independence in terms of handling,” Stroh says. DACHSER’s air freight network is also closely linked to its European overland transport network, so customers benefit from end-to-end transportation of their air freight shipments between Europe and Asia. “Even in these turbulent economic times, we stand by our own charters, ensuring predictable transport capacity for our customers.”
DACHSER South Africa recognised for leading in skills development
At the 29th Logistics Achiever Awards ceremony held on Thursday evening, 2 November at Montecasino in Fourways, Gauteng, DACHSER SA scooped a Silver category award for leading in skills development.