Evidence of the economy being in a grave state can be seen in the logistics sector where volumes are under threat and pricing is precarious.

Imperial exited the domestic consumer packaged goods business due to an “unviable and uncompetitive business model”. Costs in the industry have been rising on the back of higher fuel costs, requiring appropriate pricing models for viability. Strategies such as percentage of invoice introduce a level of uncertainty in profits as costs incurred are generally similar regardless of goods being transported.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now