Logistics group warns of higher car, food prices due to logistics challenges

Super Group has warned that South Africans’ wallets will be squeezed further if supply chain disruptions and crumbling infrastructure are not fixed as soon as possible.

Super Group is a multinational logistics and mobility group based in SA. The group also owns and manages motor dealerships. It has logistics and transport services in Europe.

In SA, Transnet and the government are mainly responsible for fixing collapsing logistics systems, as pressure from the private sector increases to restore reliable transport services in ports, rail and road.

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SA’s logistics challenges to hurt ordinary people

In its annual report for the 2025 financial year, the group said that SA’s failing logistics network, from clogged ports and unreliable rail lines to crumbling roads, is increasing the cost of transporting goods and vehicles.

The group added that the delays, rising transport and storage expenses, and mounting operational challenges are pushing up prices for South Africans while squeezing profit margins across its supply chain businesses.

“Global supply chains are likely to remain under pressure in the year ahead. Ongoing geopolitical tensions, port congestion, infrastructure vulnerabilities and complex regulatory environments are expected to continue disrupting product availability, extending lead times and driving up costs,” it said.

Logistics providers to increase prices

Super Group said challenges such as collapsing infrastructure, volatile fuel prices and rising costs made it difficult to maintain stable pricing or ensure consistent supply to customers.

“This economic uncertainty complicates financial planning, disrupts pricing strategies and erodes profit margins. The negative impacts extend to consumer behaviour, corporate investment decisions, market confidence and overall growth prospects.”

The company further warned that if the country’s logistics challenges are not addressed, many logistics companies will be forced to increase prices, which will result in goods becoming too expensive for already struggling South Africans.

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Group’s performance

The group’s revenue at its South African dealerships declined by 1.3%, primarily due to a 6.7% drop in new car sales volumes.

“This impact was partially offset by a 5.6% increase in used car sales volumes,” it said. “The overall revenue performance was supported by a well-diversified portfolio of value and volume brands, with particularly strong representation from leading Asian manufacturers.

“New car sales of Asian brands grew by 20.8%, while luxury brand volumes declined by 2.5%, reflecting the ongoing structural shift in the South African automotive market.”

The dealerships’ UK operating profit declined by 49% to R123.8 million on the back of a decline in Ford’s market share, falling to 5.8% from a historically market leading position.

Ongoing water supply and infrastructure challenges

Looking ahead, the company said it expects the ongoing water supply and infrastructure challenges in SA, especially in the rail and port sectors, to weigh on economic growth in the near term.

“Economic uncertainty and strained household budgets are likely to continue constraining consumer spending,” said Super Group. “Many advanced economies, particularly in Europe, are expected to face subdued growth through 2026 as geopolitical conflicts disrupt markets and trade flows.

“Despite the prevailing difficult trading conditions in both Southern Africa and Europe, the group expects to perform at improved earning levels in the forthcoming financial year.”

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