Lockdown level 3 brings good news for logistics companies

Lockdown level 3 brings good news for logistics companies

The resumption of mining, manufacturing and other industries expected under lockdown level 3 is good news for trucking companies who have not operated because their services were not deemed essential.

As per a draft document by the government,  under lockdown level 3 – expected to start at the end of May, some industries will be scaling production up to 100%.

President Cyril Ramaphosa announced on Wednesday night that by the end of May most of South Africa will have the lockdown eased to level 3.

As an integral part of the supply chain, trucking companies will be expected to resume operations to ensure the movement of raw materials and finished products reach desired destinations timeously.

When the lockdown began in March, only trucking companies transporting essential products were allowed to operate.

The situation changed when Transnet Port Terminals ran out of space to store freight containers which led to the partial easing of restrictions as transporters were allowed to remove the containers into storage depots.

It, however, did not benefit the transporters as they would only move the containers to storage depots since their clients were closed because of the lockdown.

Under lockdown level 3, transporters will now be able to deliver to most of their clients.

The following industries which are expected to restart operations under level 3 have a direct impact on the operations of many trucking companies:

Agriculture, hunting, forestry and fishing

  • All agriculture, hunting, forestry, fishing and related services permitted

Manufacturing

  • Cement and other construction material, scaling up to 100% employment;
  • Steel and other metal manufacturing, scaling up in phases to 100% employment;
  • Clothing, textiles and footwear, scaling up in phases to 100% employment;
  • Other chemicals manufacturing, scaling up in phases to 100% employment;
  • All other manufacturing, scaling up in phases to 50% employment;

Transportation

  • Ocean transport permitted only for the shipment of cargo;
  • Public rail, minibus taxi and bus services will resume at levels and on terms as will be set out in Directions, based on the progressive increase in commuter numbers during the various phases;
  • Transport and logistics in respect of specified cargo, and permitted retail goods to neighbouring countries, which shall include all goods imported via SA ports of entry, for re-export to neighbouring countries;
  • Essential imported goods will be prioritised through ports of entry and for transport and handling to final users. Directions will be issued in respect of other goods

Mining and quarrying

  • All mining scaling up towards 100% employment

Repair and related emergency services

  • Tow trucks and vehicle recovery services

Supply chain

  • Production, manufacturing, supply, logistics, transport, delivery, critical maintenance and repair in relation to the rendering of permitted services including components and equipment;

Health, social and personal services

  • Recycling of glass, paper and metal including informal recyclers permitted at full capacity

Wholesale and retail trade, covering stores, spaza shops, eCommerce and informal traders

  • Fuel, including coal, wood, paraffin and gas
  • Hardware, components and supplies for sale to the general public;
  • Stationery and all books
  • Products for the care of babies and toddlers

Find here the full list of the businesses expected to resume operations under lockdown level 3  at the end of May.

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SA Trucker

I am a professional truck driver and passionate author in the trucking industry of Southern Africa.