- The Ctrack Freight and Transport index is still tracking 5.6% below its 2019 high and 7% below its all-time high achieved early in 2018.
- The index for the fourth quarter of 2020 shows that, on a quarter-on-quarter basis, storage grew by 13.1%.
- The only sector of the index that showed negative growth during the fourth quarter was rail.
Local air freight is showing positive growth, according to the latest Ctrack Freight Transport index.
"In South Africa, air freight received no government aid, space was at a premium as there were fewer flights, and prices rose by between 200% and 300%. Yet, the sector has bounced back against all odds, showing how resilient it is," states the index report.
Over 20 000 tons were transported during December 2020, despite lockdown curfews and international flight limitations.
The index, compiled in conjunction with economists.co.za, for the fourth quarter of 2020 further shows that, on a quarter-on-quarter basis, storage grew by 13.1%.
"The growth in storage could be attributed to the combination of a less-than-perfect Black November retail campaign that resulted in a surplus of retail goods and supply chain disruption fears," states the report.
The only sector of the Ctrack Freight Transport index that showed negative growth during the fourth quarter was rail, with a decline of 2%.
"The overall freight sector grew by between 2% and 5%, which is lower than normal, but acceptable given the large number of external factors that are putting pressure on the various industries," states the report.
Worst is over, but times are still tough
"While these figures might not be cause for celebration, they do signify that the worst is over for the industry, times are still tough but at least things are moving again."
Further recovery in 2021 is, however, expected to be slow.
The Ctrack Freight and Transport index is still tracking 5.6% below its 2019 high and 7% below its all-time high achieved early in 2018.
According to the index report, this shows that, prior to the first Covid-19 lockdown, the South African economy was already in a recession and until major economic sectors such as travel and tourism return to normal, it is unlikely that the Ctrack Freight Transport index will get near those previous record highs.
"The Ctrack Freight Transport index shows that the economy is slowly getting back to normal, however government need to ease the restrictions on sectors such as travel in order for the industry to show further recovery," said Hein Jordt, managing director of Ctrack SA.
"For many decades, air freight has been one of the fastest growing freight transport sectors. Due to the fact that the tourism industry remains under immense pressure, a closer look at the air freight industry was warranted as traditionally passenger aircraft carry more cargo than actual freight aircraft."
Air freight reached a 12-year low in May 2020.
"The improvement of air freight in the final quarter of 2020 as measured by Ctrack of 30.6% is nothing short of a miracle. This performance is amazing if one takes into account that there was less international travel and fewer scheduled flights and shows the resilience of this sector," said Jordt.
Even though Africa fared slightly better than the rest of the world, during the Covid-19 hard lockdown, air cargo was the worst affected transport and freight sector globally.