Supply chain risk and performance of freight forwarders in South Africa

Global trade exposes firms to heightened supply chain risks, including long lead times, diverse regulations, political instability, and currency fluctuations. Freight forwarders, as intermediaries in international trade, are particularly vulnerable. This study investigates the impact of supply chain risks on the performance of freight forwarders in South Africa. Data were collected from 156 freight forwarders using a structured questionnaire. Descriptive statistics, correlation analysis, and dimension reduction techniques were employed to analyse the data. The analysis identified key supply chain risks, including supplier reliability issues, currency fluctuations, and political instability. Currency fluctuations and political instability revealed a positive correlation with financial performance. These findings suggest that while freight forwarders should address the identified risks, prioritizing mitigation strategies for currency fluctuations and political instability is crucial for profitability. This study contributes to literature by applying resource dependency theory, thereby broadening its theoretical application especially in an emerging economy context.