Andre Klynsmith

Business Insights

You May Share a Container, Not a Negotiation: The Export Exemption's Fine Line

South African exporters may legally share freight consolidation, warehousing and certain logistics costs with competitors under the country's export block exemption, but the exemption does not cover collective commercial negotiations with port or rail operators.

Business Insights

1 September 2026 • 3 min read

The Competition Commission and the dtic drew the boundary in a public webinar on 31 August 2026. Small exporters can pool volume to fill a box. They cannot pool bargaining power against a terminal operator. The distinction is where the legal risk sits.

What the Exemption Permits

Speaking at the webinar, dtic Director for Export Development and Support Kwanele Mkhwanazi framed the purpose plainly: collective action can help exporters overcome logistics barriers that keep international markets out of reach. "Smaller exporters in particular often struggle to afford logistics and consolidate enough volume to ship commercially," he said. "Several small exporters targeting the same overseas market could potentially share costs associated with logistics, warehousing and other export-related activities."

Competition Commission Senior Legal Counsel Simphiwe Gumede confirmed that permitted collaboration can include certain costs associated with shipping, storage, inspections and freight consolidation hubs. Exporters may also share aggregated export price and volume information — but only through an independent third party, not directly between competitors.

Where the Exemption Stops

Gumede was explicit that the exemption does not extend to commercial agreements between exporters and port or rail infrastructure providers. Those arrangements fall outside its scope, which means a group of exporters cannot rely on the exemption for protection when negotiating collectively with a terminal or rail operator.

That is a meaningful limit given how much of the cost stack sits with those providers. The exemption facilitates cooperation among exporters on the things they control between themselves — booking, consolidation, storage, inspection — while leaving ordinary competition law fully in force on their dealings with transport infrastructure.

Get Confirmation Before You Implement

The Commission urged exporters to obtain confirmation that a proposed agreement falls within the exemption before implementing it, rather than relying on a good-faith reading. With a 30-day consideration period and a possible 30-day extension, a group planning to consolidate for a specific export season needs to start that process well ahead of the shipping window.

For freight forwarders and consolidators, this creates a defined service opportunity. Someone has to be the independent third party through which aggregated price and volume information flows, and someone has to run the consolidation hub. Neutral intermediaries are structurally well placed for both roles — and being that intermediary is also what keeps the arrangement inside the exemption's boundaries.

About the Author
	Andre Klynsmith Entrepreneur & Technology Enthusiast Andre's expertise spans technology, blockchain, transport, and logistics — with a passion for innovation and driving positive change across industries. info@laaimylorrie.com | laaimylorrie.com