South Africa’s steel sector is under immense pressure. As a result of slowing demand and surplus inventory, and with cheap imports from China flooding the market and driving down prices, local production is close to what it was in 1998 – and nearly 40% lower than its peak in 2007.
As pressure mounts to sustain higher service levels, local steel manufacturers are becoming more open to proactive, flexible, value-added solutions offered by service providers such as Cargo Carriers.
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The slow-down in demand, the over-supply as a result of Chinese imports flooding the market and slowing economic growth, and the accompanying plunging prices, have placed unprecedented strain on local steel companies.
Logistics companies that have laid strong foundations by gaining sector experience and putting the right strategies and investments in place are well positioned to help manufacturers offset these challenges to some degree while they ride out the storm.
And, while the industry has suffered significant losses over the last five years, this could change in the near future. Local steel demand is forecast to recover from the current slump and attain a 2 percent annual growth rate, with import tariff increases being mooted to protect against cheap Chinese imports, new public infrastructure projects coming online in South Africa, and continued economic growth in countries across Sub-Saharan Africa to which South Africa exports.
Our Steel business is based in Vanderbijlpark, where our specialised trailers –equipped with innovative, value-adding features – are utilised to move steel plates and coils to users throughout Gauteng, and further afield.
We combine our own fleet capabilities with an extensive network of accredited sub-contractors to ensure we are always on hand to meet demand, whatever the capacity, while maintaining the Cargo Carriers stamp of quality and reliability.
Our fleet of tri-axle trailers is specifically designed to carry flat plates and coils to maximum capacity. A custom-made, moveable bogie optimises efficient point loading. The bogie can also be transformed into a slide flex-type configuration.
We design, implement and operate logistics solutions. Our transportation control centres, depot management oversight, stock control measures and 24/7 operations combine to maximise productivity and visibility, and ensure complete reliability.
By combining our supply chain and logistics expertise with our considerable experience in the steel industry, we are able to assist manufacturers reduce transportation costs, improve outbound logistics efficiencies and increase service levels.
In a tight, competitive sector where companies are fighting for all the competitive advtantage they can secure, manufacturers are relying more heavily on their larger, more reliable service providers, and seeking ways to make their logistics systems more productive.
As pressure mounts to sustain higher service levels, they are becoming more open to proactive, value-added solutions.
Through our Supply Chain Solutions division and focus on continuous improvement, Cargo Carriers helps clients in the steel sector add significant value to their operations. Establishing long-term, value-creating partnerships enables us to commit additional capital to support those supply chain innovations that we recommend.
You need a specialist partner that can help you meet demand efficiently and flexibly, with a variable cost model.
Choose a logistics and supply chain service provider who offers you:
Experts in supply chain and logistics services, Cargo Carriers continually seeks out ways to innovate new efficiencies for effective supply chain management. Find out how we can help you to create more value.