Importers and Exporters should brace themselves for further Bunker Adjustment Factor (BAF - fuel increases). Some Vessel carriers may increase their BAF on a month to month basis due to the switch over to the Very Low-Sulphur Fuel Oil Prices (VLSFO). At the beginning of the pandemic ship owners switched from IMO 2020 {International Maritime Organization, On 1 January 2020, the International Maritime Organization (IMO) implemented a new regulation for a 0.50% global sulphur cap for marine fuels) to Very Low-Sulphur Fuel Oil (VLSFO) {This type of marine fuel contains less sulphur and therefore complies with the IMO 2020 regulations.}

LCL increase

The increase of air freight cost, Fuel prices, shortage of containers, shipping companies reducing their fleet on certain sea voyages has influenced importers/ exporters with their method of shipping their goods in/out of South Africa. Importers & exporters has opted with a method of shipping their goods via LCL (Less than container loads). With importers / exporters shipping goods via LCL it means an increase in cash flow, reduction of freight cost when compared to air freight, freeing up warehouse space, improvements of earlier shipping dates thus improves payments from their buyers, insurance premiums and forex rate fluctuations which is a win situations for the importer/ exporter.

E-commerce

The pandemic has resulted in business changing more to the route of E-commerce. Online shopping has increased & client meetings done via zoom/ micro-soft teams/ whatsapp.