Welcome to the March edition of the Global Logistics Update, your essential guide to staying ahead in the dynamic world of international trade. The global logistics landscape is navigating a series of complex challenges and transformations, demanding constant vigilance and adaptability. This update provides an overview of the key challenges and emerging trends shaping the movement of goods worldwide, with a particular focus on the persistent issue of port congestion and the evolving market forces that drive them.
South African Ports
South African ports are integral to our economy, facilitating the movement of goods domestically and internationally, acting as key hubs across Southern Africa. Managed by Transnet National Ports Authority, these ports support a variety of cargo types, including bulk commodities, containers, liquid fuels, and automotive products. The primary ports include Durban, Cape Town, Richards Bay, Ngqura, Port Elizabeth, Port of East London and Saldanha Bay, each with varying degrees of challenges and advancements. We expand on our three main ports as summarised on a weekly basis below:
We highlight in these images vessels currently at anchorage pending berth at our 3 main ports. Port congestion and delays have been reported with Durban at 6 days, Cape Town at 9 days and Coega at 3 days on average.
South Africa’s key ports, particularly Durban and Cape Town, continue to face significant operational challenges that impact their efficiency and the broader logistics landscape. Contributing factors include adverse weather conditions, port inefficiencies, equipment shortages, and infrastructure issues, which have collectively hindered effective cargo handling. Despite efforts by Transnet Port Terminals to deploy new equipment and implement maintenance schedules, these measures have not fully alleviated the congestion. Consequently, there is a growing risk of cargo being diverted to alternative ports in the region.
TNPA embarks on major upgrades
As part of a broader strategy to enhance logistics efficiency, Transnet National Ports Authority (TNPA) is investing in upgrading and expanding port facilities to streamline operations, reduce bottlenecks and improve the overall competitiveness of the country’s logistics sector.
https://www.freightnews.co.za/article/tnpa-embarks-major-upgrades
SA climbs in logistics index amid shifting global supply chains
This climb signals growing confidence in the country’s ability to facilitate efficient supply chain operations in a rapidly evolving global landscape.
https://www.freightnews.co.za/article/sa-climbs-logistics-index-amid-shifting-global-supply-chains
Global Ports
Global ports are the linchpins of international trade, serving as the critical interface between maritime transport and land-based supply chains. Their efficient operation is paramount to the smooth flow of goods, impacting everything from consumer product availability to global economic stability. Global port congestion is a complex issue, and we therefore only review basic routing, infrastructure demands and vessel berthing delays.
Updates:
Congestion edged up slightly in the past 2 weeks, with European port congestion remaining severe. All North Europe main ports have reported very high yard utilization, which has been exacerbated by labour disputes in Rotterdam and Le Havre. Vessel waiting times remained elevated at up to 5 days with congestion most serious in Rotterdam, Antwerp, Southampton, and Hamburg which are affecting mother vessel and feeder schedules. Some terminals have applied emergency measures to cease cargo acceptance.
Dominant OCEAN Alliance extension leaves THE Alliance stranded
As CMA CGM, COSCO, along with its subsidiary OOCL, and Evergreen will remain under the OCEAN Alliance umbrella until 2032 and Maersk has already announced its upcoming partnership with Hapag-Lloyd, effective from February 2025, the members of THE Alliance seem in an unfavourable position. Meanwhile, MSC and ZIM have already signed a partnership agreement.
https://www.maritimegateway.com/dominant-ocean-alliance-extension-leaves-the-alliance-stranded/
What are tariffs and why is Trump using them?
Tariffs are a central part of Trump’s economic plans. He says tariffs will boost US manufacturing and protect jobs, as well as raising tax revenue and growing the economy.
https://www.bbc.com/news/articles/cn93e12rypgo
Global Shipping: navigating the waves of geopolitics
On a regional basis, Asia remains the strongest growth engine for trade and shipping driven by strong structural economic growth. The US is still growing for now, while Europe lags behind the global average as industrial production faces setbacks and manufacturing continues to reel from high energy prices.
https://www.hellenicshippingnews.com/global-shipping-navigating-the-waves-of-geopolitics/
Freight News
We understand the importance of staying up to date with the latest trends, challenges, and advancements in our industry and we wish to highlight just a few articles which you might find of interest.
Transnet starts wage talks with Untu and Satawu
https://www.freightnews.co.za/article/transnet-starts-wage-talks-untu-and-satawu
Untu rejects Transnet’s revised wage offer
https://www.freightnews.co.za/article/untu-rejects-transnets-revised-wage-offer
Flooding and protests disrupt road freight into Botswana
https://www.freightnews.co.za/article/flooding-and-protests-disrupt-road-freight-botswana
U.S. metal trade dynamics: tariffs, imports, price surge and its impact on shipping
SA logistics at a critical juncture – Saaff CEO
https://www.freightnews.co.za/article/sa-logistics-critical-juncture-saaff-ceo
Bulker shipping faces tough year as China’s manufacturing sector weakens.
CMA CGM surpasses Maersk in the capacity stakes
https://www.freightnews.co.za/article/cma-cgm-surpasses-maersk-capacity-stakes
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / Openpr / Transnet / WeFreight / MSC / AfricaPorts / Container Statistics+News / Flexport / SACO / Hellenic Shipping / Worldcargonews/ Maritime Executive / GCaptain/ Linerlytica