Welcome to the month of Spring and our next Global Logistics Update. The logistics industry continues to face challenges and transformations on a global scale and current trends indicate how the shipping industry is rapidly evolving to address current challenges and future demands.
South African Ports
adverse weather conditions and inefficiencies at local terminals. Additionally, Maersk line planned service adjustments to align with reduced demand during China’s Golden Week, causing delays and omissions in certain routes. Mismanagement within Transnet has been the recurring theme and much has been published in the news in the last week. Please refer to some of these referenced below for understanding of the port situation.
Durban port, handling a significant portion of SA’s container traffic, continues to experience significant port congestion causing vessels to remain at anchorage for up to 18 days, and transporters are still grappling with the technical glitches in the new truck appointment system. Transnet has been working on refining the system and modernize its operations, but port congestion remains a current challenge all round. Coega and Cape Town ports also recently faced delays with vessels waiting to berth for longer periods than usual, due to inefficiencies in the container booking system. Truck congestion alongside strong winds in the last week, was the main concern reported.
We highlight in the images below, vessels currently at anchorage pending berth at our major ports, showing a vast increase outside Durban and Coega:
Port congestion and delays have been reported with Durban at 18 days, Cape Town 8 days and Coega 10-13 days on average.
Transnet Anchorage Report – published 16 September.
SCOPA members want Transnet to name people responsible for wasteful & fruitless expenditure
In reporting on Transnet’s annual audit last week, the Office of the Auditor General said there was a lack of consequence management by the freight agency for those identified in wrongdoing.
Transnet battling to cover debt, improve operational performance
Transnet says it’s struggling to make enough money to cover its debt and to improve its operational performance. The rail, freight and port agency is spending R1 billion a month to service its R130 billion debt.
Global Port Statistics
Port Updates:
Africa & Indian Ocean Islands
- East African services ex-South Africa – MSC no longer sailing directly from Durban, resulting in longer transit times & Messina only sail once monthly. Hapag Lloyd offers service with longer transit routing via Jebel Ali.
- Tema Port is experiencing port congestion which affects many other West African destinations that tranship through this port.
- Angola/Mozambique/Ivory Coast – Berthing delays of 4-8 days experienced
- Ghana/Kenya/Nigeria/Mauritius/Namibia – Berthing delays of 2-3 days experienced
- Tanzania – Berthing delays of 7 days experienced at Dar es Salaam port. High levels of congestion continue to be experienced.
North America
- Vessel scheduling amendments are on the increase impacting both imports and export services.
- USA: currently in peak season in preparation of the upcoming holiday season and mention of potential strike action.
- Norfolk – Vessel waiting time is up to 4 days. Cranes have been repaired and reported in service.
- New York/New Jersey – Vessel waiting time is up to 3 days
- Charleston – Severely congested with a waiting time up to 9 days
- Houston/Oakland/Los Angeles/Miami – Vessel waiting time is between 2-5 days
- Savannah – Vessel waiting time is up to 5 days
- Canada: Berthing delays between 2-3 days experienced at Montreal/Toronto/Vancouver ports.
Latin America
- Argentina – Berthing delays of 9 days experienced at Buenos Aires port
- Brazil – Berthing delays of 4 days experienced at Santos port and 14 days at Paranaqua.
- Mexico – Berthing delays of 3 days experienced at Altamira port and 3 days at Manzanillo and Veracruz ports
North West, UK, Mediterranean
- Belgium/Spain/France/Germany/Italy/Turkey – Berthing delays of 2-4 days experienced at major ports
- Netherlands – Berthing delays of 6 days experienced at Rotterdam port.
- UK – Berthing delays of 2 days experienced at London Gateway port
Indian Sub Continent & Middle East
- Capacity constraints continue to be experienced on services out of the Indian Sub-Continent. This may lead to different transit times being achieved compared to what has been published.
- However, in the Middle East we are seeing an increasing number of airlines cancel or suspend their services to Israel and/or Lebanon and some other neighbouring territories.
- India- Berthing delays of 3 days experienced at Nhava Sheva port
- UAE – Berthing delays of 2 days experienced at Jebel Ali port
Asia Pacific – Oceania
- Currently Mid Autum Festival Holidays with main offices closed until the 19th September as well as the upcoming holidays first week of October 1-7th. Many shipping lines have blanked a number of export sailings from Asia – This prior to the Chinese national holiday in October. The Blank sailings will likely result in upward rate pressure.
- Singapore – The port remains heavily congested for imports and exports.
- Qingdao/Shanghai – Berthing delays of 2-4 days experienced at this port
All other ports are experiencing 1-2 days berthing delays
Assessing the potential of a port strike
Nearly one year ago, Acting U.S. Secretary of Labor Julie Su stepped in and helped the International Longshore and Warehouse Union (ILWU) bridge the differences with the Pacific Maritime Association and prevent a West Coast longshoreman port strike. Now, the same scenario may be playing out on the East Coast and given the differences between the two sides, it may take government intervention to prevent a shutdown of East Coast and Gulf Coast ports.
https://www.scmr.com/article/assessing-the-potential-of-a-port-strike
Canada’s major rail carriers have recovered from labor strife
Less than a month after a work stoppage shut down Canada’s main rail carriers, both companies say operations on their respective networks are back to normal.
“All of our metrics, they’re normalizing now,” Keith Creel, president and CEO of Canadian Pacific Kansas City, said Wednesday during the annual Morgan Stanley Laguna Conference. “So, we’re two weeks out of the strike and the network essentially is caught up.”
https://www.supplychaindive.com/news/canada-rail-strike-cpkc-canadian-national-network-normal/726821
Biden finalizes China tariff hikes
The Office of the U.S. Trade Representative finalized its plan Friday to raise tariffs on a slew of goods made in China, largely adopting hikes it first proposed in May. The heightened tariffs go after strategic product categories, including electric vehicles, batteries, critical minerals, semiconductors and solar cells. The final tariff structure includes 14 product categories that cover thousands of items.
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 spot rates drop 8%
https://www.freightnews.co.za/article/container-spot-rates-drop-8#
Movement at South African ports improves – Saaff/Busa
https://www.freightnews.co.za/article/movement-south-african-ports-improves-saaffbusa#
20% on all imports, at least triple that for China – Trump
https://www.freightnews.co.za/article/20-all-imports-least-triple-china-trump
Denmark’s DSV wins 14 billion-euro race for Deutsche Bahn’s Schenker, sources say
https://www.reuters.com/markets/deals/denmarks-dsv-wins-14-bln-euro-race-deutsche-bahns-schenker-sources-say-2024-09-11/
Durban Port precinct truck congestion under spotlight
https://www.freightnews.co.za/article/durban-port-precinct-truck-congestion-under-spotlight
DSV and Deutsche Bahn agree €14.3bn sale of DB Schenker
https://theloadstar.com/dsv-and-deutsche-bahn-agree-14-8bn-sale-of-db-schenker/
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / MSC / Transnet / WeFreight / Beacon / Reuters / MSC / AfricaPorts / Container Statistics / Flexport / SACO