FANews
FANews
RELATED CATEGORIES
SUB CATEGORIES General |  Healthcare |  Investments / Economy |  Legal |  Life | 

Lockdown and the Logistics Industry

21 April 2020 George Marais, Authorised Representative at Prestige Credit Insurance Consultants
George Marais, Authorised Representative at Prestige Credit Insurance Consultants

George Marais, Authorised Representative at Prestige Credit Insurance Consultants

As we are all aware, the fall-out from COVID-19 is severely impacting businesses’ ability to trade. This in turn will affect liquidity and the ability of debtors to maintain payments. It is not business as usual, these are extraordinary times.

Even though government has done a good job of managing the outcomes related to the lockdown, the reality is that the majority of logistics companies do not fall under the heading of essential services. We are seeing business in the logistics industry operating at 20% of their normal output.

From a logistics industry perspective, we are seeing companies moving their focus, servicing essential services suppliers that were not their primary focus in the past.

Most of these companies have implemented one or more of the following approaches to weather the storm:
• Extending payment terms with creditors.
• Requesting payment relief from banks.
• Revise budgets to incorporate the losses into the remainder of the year.
• Innovation is key, optimising the digital space to secure future sales.
• Tax breaks.
• Delay payments on provisional tax.
• Government funding.
• Cutting executives remuneration for an extended period.
• Implementing forced leave and temporary layoffs.

Quick Polls

QUESTION

The South African authorities are hard at work to ensure the country is removed from the global Financial Action Task Force grey-list by February or June 2025. What do you think about their ongoing efforts?

ANSWER

But what about the BRICS?
Compliance burden remains, grey-list or not.
End-2025 exit is too optimistic.
Grey-list is the new normal.
Too little, too late.
fanews magazine
FAnews October 2024 Get the latest issue of FAnews

This month's headlines

The township economy: an overlooked insurance market
FSCA regulates crypto assets: a new era for investors
Building trust: one epic client experience at a time
Two-Pot System rollout underlines the value of financial advice
The future looks bright for construction
Subscribe now