South African businesses are facing severe disruptions in the freight market due to a combination of factors, including weather conditions, fuel price increases, shipping disruptions, and key personnel changes at Transnet.

More than half the country’s container traffic is routed through the Port of Durban, where congestion is most acutely felt.

Factors Affecting Freight Operations

1.Transit Issues

Erratic Transit Times:

Delays in sea freight shipments, especially on the Far East to South Africa trade route.

Blank Sailings:

Numerous vessels delayed, impacting sailing schedules.

Capacity Constraints:

Significant pressure on capacity, especially from the Far East.

2. Port Congestion and Delays

Port Congestion:

South African ports experiencing congestion and berthing delays.

Berthing Delays:

Extended delays of two to three weeks, impacting schedules.

Equipment Challenges:

Availability of equipment impacted in some regions.

Some importers fear they will miss the Christmas rush due to heavy congestion at the Port of Durban – Southern Africa’s busiest container port – with ships taking 20 days or more to offload cargo in some cases. This is three or four times longer than the average.

How have shipping lines responded to this?

Congestion Surcharges:

Major shipping companies, MSC, CMA CGM, Hapag Lloyd and Maersk, imposing congestion surcharges to recover losses and check.

Find out the rate updates here: New Surcharges Due to South Africa Port Congestion in Dec 2023!

Reasons stated for Surcharges:

Port inefficiency, delays, and operating challenges cited as reasons.

Mitigation Efforts by Transnet

Operational Improvements:

Transnet Port Terminals (TPT), South Africa’s state-owned freight transport company which owns and operates 16 terminal operations situated across seven South African Ports, is deploying industrial engineers, sourcing second-hand equipment, and implementing a 24-hour maintenance regime.

Implications for Freight Forwarders

1.Planning Ahead

Capacity Challenges:

Be aware of capacity pressures, especially on routes from the Far East.

Scheduling Uncertainties:

Expect erratic transit times and be prepared for sudden changes in sailing schedules.

2. Budgeting for Surcharges

Congestion Surcharges:

Account for additional costs due to congestion surcharges imposed by shipping lines.

Customer Communication:

Keep clients informed about potential cost increases and delays.

3. Diversification of Routes

Explore Alternatives:

Consider alternative ports like Maputo and Luanda to avoid congestion-related issues.

Evaluate Other Ports:

Assess the viability of using ports in neighboring countries.

4. Collaboration with Partners

Communication with Service Providers:

Work closely with partners and service providers to ensure efficient delivery despite challenges.

Real-time Updates:

Stay informed about real-time recovery efforts and changes in the situation.

Conclusion

While challenges persist in the South African freight market, proactive planning, budgeting for surcharges, diversifying routes, and effective collaboration with partners can help freight forwarders navigate the current disruptions and ensure smoother operations.

Find related articles:

1. New Surcharges Due to South Africa Port Congestion in Dec 2023!