Welcome to the November edition of our Global Logistics Update. As global economies prepare of peak season and navigate through the seasonal shifts, our updates will cover the latest developments, port challenges and trends shaping the supply chain industry worldwide.
South African Ports
South African ports play a critical role in the logistics and the trade landscape of Africa, acting as a gateway for global shipments to and from the region. The major ports including Durban, Coega and Cape Town are vital for the transport of containerised goods, bulk commodities, and automotive parts. Each continue to experience varying degrees of challenges as summarised on a weekly basis below:
We highlight in these images vessels currently at anchorage pending berth at our major ports, showing an increase outside Durban & Coega. Port congestion and delays have been reported with Durban at 18 days, Cape Town at 8 days and Coega at 11 days on average.
Transnet’s Anchorage Report 11/11/2024 for Durban – Vessels waiting to berth
South African ports have been undergoing modernization to increase their efficiency and capacity. Projects include upgrading cranes, expanding container yards, and improving digital systems for better tracking and management. However, capacity constraints and aging infrastructure are still challenges, particularly during peak times.
Breakdowns continue to hamper operations at Transnet
Container throughput at the country’s ports improved week-on-week from a daily average of 10 691 TEUs to 11 046, the latest Cargo Movement Update by the South African Association of Freight Forwarders (Saaff) and Business Unity SA (Busa) reported. Yet state-owned port and rail freight operator, Transnet, has reported that its performance remains severely hamstrung by equipment breakdowns.
Transnet sets record straight about ‘delayed berthing’
Transport Port Terminals (TPT) has indicated that a vessel scheduled to only dock on November 22, which had been at anchorage since October 29, the Dolphin II, had “arrived much earlier than its planned time”.
TPT said: “Berthing plans are shared 21 days in advance, and then updated every 24 hours.”
Inclement weather in Durban in the past weeks has seen the terminal lose six days as of today.
Global Ports
The 2024 outlook for global ports shows a mix of optimism and challenges, largely shaped by economic recovery, energy transition initiatives, and evolving geopolitical tensions.
Africa and Indian Ocean Islands
East African Ports continue to experience congestion with multiple changes to published schedules.
Main ports experience 1-3 days berthing delay with Kenya, Nigeria, Senegal at 3 days and Tanzania at 8 days.
Canada
Current strike action and unrest may cause additional port delays
Montreal/Toronto/Vancouver – Berthing delays of 2–3 days at main ports
USA
Schedule amendments are announced by carriers with minimal notice impacting both inbound and outbound cargo.
Savannah – Vessel waiting time up to 10 days
Charleston/New York/Norfolk/Houston/Oakland/Los Angeles – Vessel Waiting times 3-5 days.
Latam/Argentina/Brazil/Mexico – Berthing delays of 3-6 days at main ports.
North West / UK / Mediterranean
Vessel delays continue to impact this region, noting the main congested ports below:
Belgium/Germany/Netherlands/Spain – Berthing delays of 3-4 days experienced at main ports
UK – Berthing delays 6 days experienced at London Gateway Port
Indian Sub-Continent & Middle East– Services remain active amid the on-going situation in the middle east
India – Berthing delays of 3 days at Nhava Sheva
UAE / Lebanon / Sri Lanka – Berthing delays of 1-2 days experienced at main ports
APAC
Berthing delays have improved over the last week with an average of 1-2 days at main ports
Malaysia – Berthing delays of 4 days experienced at Port Kelang
Shanghai / Qingdao / Xiamen / Taiwan / Vietnam – Berthing delays 2 days experienced at main ports
Singapore – Berthing delay of 1 day with FCL units still waiting transhipment 7-10 days on average
Asia Market Overview
In November 2024, Asia saw a surprising uptick in demand following China’s Golden Week holiday. Initial expectations leaned towards slow October pricing due to low September activity, but increased bookings have led to high vessel utilization, with some carriers rolling shipments. According to Drewry’s World Container Index, container prices dipped by 4%, reaching $3,216 per 40ft container by mid-October. The year-to-date average sits at $4,058, notably higher than the 10-year average of $2,834, although this figure reflects recent exceptional conditions (source: Drewry).
Several new services are set to enhance regional capacity. Maersk and Hapag Lloyd announced their new Northern Star service, which operates a direct route from Shanghai and Hong Kong to key New Zealand ports, offering improved coverage for Australia-NZ trade lanes. MSC has also introduced the Koala Service, connecting China and Indonesia with direct routes to Fremantle. TS Lines has arranged additional loader vessels to support this route in October, but limited vessel capacities of under 2,000 TEU per vessel may affect space availability.
USA/Canada Market:
The Port of Long Beach achieved a record-breaking quarter, moving 2.63 million TEU in Q3 2024, its highest-ever container volume for a single quarter. Additionally, it handled 829,499 TEU in September alone, surpassing the previous record set in September 2023 by 70 TEU.
Looking ahead, the political landscape may further impact trade; with the U.S. Presidential Inauguration scheduled for January 20, 2025, there is speculation that new trade tariffs could be imposed on Chinese imports if Trump assumes office, potentially affecting demand.
The ripple effects of recent U.S. port strikes along the East Coast and Gulf, which spanned three days, are still impacting the supply chain. This disruption has temporarily shifted some cargo back to West Coast ports, increased demand for air freight, and is expected to take an additional 4-6 weeks to fully stabilize.
European Market:
In Europe, severe weather conditions in September disrupted freight schedules as Storm Boris hit Central Europe, leading to increased delays. Sea freight rates have seen a downturn with a 9% decrease on the Shanghai-Genoa routes and a 6% drop on Shanghai-Rotterdam routes (source: Drewry).
Air Freight Trends:
Air cargo space remains constrained especially in Shenzhen, with rates seeing upward trends. The industry anticipates this momentum will continue into Q1 2025, driven largely by e-commerce demands and peak season traffic. According to Xeneta, in September, global spot rates increased by 26% month-over-month, hitting USD 2.71 per kg, marking the fourth consecutive month of growth.
Trump presidency 2.0 will likely disrupt container shipping industry
Trump has vowed blanket tariffs of up to 20% on all imports into the US and additional tariffs of 60% to 100% on goods from China. The proposal comes at a time when the global container shipping industry is already negatively impacted by ongoing geopolitical tensions.
Shanghai going all-out to become green international shipping center
Shanghai, the main hub of the East China region, is taking necessary steps to achieve its ultimate goal of becoming a digital, intelligent and green international shipping center.
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.
Container volumes dip sharply month on month
https://www.freightnews.co.za/article/container-volumes-dip-sharply-month-month
No cargo movement at the Port of Maputo as election unrest spirals
https://www.freightnews.co.za/article/no-cargo-movement-port-maputo-election-unrest-spirals
Acquisition marks significant development in maritime industry
https://www.freightnews.co.za/article/acquisition-marks-significant-development-maritime-industry
South Africa and Chile sign fisheries MOU
https://www.freightnews.co.za/article/south-africa-and-chile-sign-fisheries-mou
Transnet tugs turn to cleaner fuels
https://www.freightnews.co.za/article/transnet-tugs-turn-cleaner-fuels
Global schedule reliability drops to 51.4%
https://www.freightnews.co.za/article/global-schedule-reliability-drops-514
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / TFG Global / Transnet / WeFreight / MSC / AfricaPorts / Container Statistics / Flexport / SACO