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| Super User | Editorial Feature

What started out as sporadic incidents on one or two routes, has now spread to the total supply chain, affecting the transport legs (all forms, whether local or long-haul), as well as destinations and originations. With the total supply chain now being impacted, the economic effects are far reaching – but the collapse of the supply of all goods will be the immediate result. 

The looting and destruction of retail points (from small businesses to large malls, from regional to national distribution centres and warehouses) will force closures, whilst damages are ascertained, repairs are done and stock levels are replenished. There will be shortages. Some companies shave already noted they will not repopen and the direct job losses (in those companies) and the indirect job losses (from all their service providers) will be huge. The cycle of unemployment will continue to spiral upwards.

What cost are we looking at? The cost to operational assets (vehicles and infrastructure) is just the tip of the iceberg – and as reports come in, this will grow exponentially. We are already looking at Billions of Rands in the total logistics supply chain - without factoring in the damages to commercial retail space.

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