At one point, sea freight was agriculture’s most preferred mode of transportation for goods to international markets. However, this once affordable and economically viable export solution has turned into a logistical nightmare for Mzansi’s exporters with some putting serious thought behind airfreight.
Transnet’s most recent industrial action is believed to have held the entire agriculture sector at ransom. Tonnes of fruit were stuck at the ports across South Africa due the ongoing backlogs, while some fruit growers were forced to delay their harvesting.
According to Thabile Nkunjana, agricultural economist at the National Agricultural Marketing Council (NAMC), the recent Transnet strike prompted several industries, notably agriculture, to investigate other means of transport.
“Producers are required to uphold trade agreements since some agricultural items are reserved and paid for ahead; otherwise, they run the risk of losing their customers.
“This has wide-ranging effects on producers’ livelihoods as well as the dependents of those who work in subsectors like berries and grapes, and others which will be ready for the market in the coming weeks,” Nkunjana said.
Will it work for all commodities?
Professor Mmatlou Kalaba, a commodity markets and foresight expert at the Bureau for Food and Agricultural Policy (Bfap), told Food For Mzansi that air transportation could be a viable alternative to consider.
Although viable, however, not all produce can be transported via air. Factors such as weight, value and commercial markets would need to be taken into consideration when deciding which produce to transport by air, Kalaba pointed out.
“Weight of the goods is important when looking at the alternative of air transportation. I would say produce like dry fruits and berries are the ones that can be transported in large quantities.
“Value and the market you are selling to are important as well. If there are more flights going to a certain direction where the market is, [this] means [that] goods can move quicker,” he explained.
Kalaba said currently less than 10% of South African produce is transported by air.
Meanwhile, Nkunjana said for products like berries that are currently at the height of their marketing season, air freight is arguably the better alternative.
“[For] those [commodities] whose season began in October, such as nectarines, peaches and table grapes, as well as those whose season is about to fully begin, such as apricots, plums, and mangos, air transportation can be considered,” he said.
Eish, but airfreight costs…
There are, however, major cost implications to consider when it comes to airfreight as well. And considering South Africa’s current flight crisis and several airlines closing shop, shipping agricultural products by air would prove quite difficult, experts believe.
Nkunjana explains, “Given these difficulties and the pressing need to find a solution to the country’s logistical issues, it is improbable [or] at least [too] soon to think of air transportation as a replacement [for] sea transportation.”
An average airplane ticket between Johannesburg and Cape Town, for example, today costs three times more than what it did a few years ago.
“A normal flight ticket would have cost R700 in 2019, but it now costs almost R3 700. This is just to give a feel of what the air service situation looks like in South Africa now. This means tonnage for goods transported by air has seen high rates as well,” Nkunjana explained.
As far as Nkunjana is concerned, significant improvements needed to be made in the Mzansi’s ailing ports infrastructure. As it stands, air transportation is not sustainable in terms of costs in comparison to sea transportation, he said.
Transnet turnaround strategy
Meanwhile, commodity groups are still picking up the pieces after the Transnet strike. The aftermath is expected to impact ground-level agricultural workers the most in the weeks ahead.
Transnet said it has since cleared all the backlogs.
“As part of the recovery plan, ahead of the deciduous fruit season which starts in mid-November, the Cape Town container terminal will utilise a three-berth operation, operating at full capacity to ensure vessels are turned around timeously.
“Transnet is encouraged by the swift manner in which backlogs were cleared and is set to continue in this positive vein to ensure the deciduous fruit season is successfully executed,” Transnet said in a statement.
ALSO READ: Transnet strike: SA risks losing fruit export power
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