Welcome to the October edition of our Global Logistics Update. The logistics industry continues to navigate through the landscape of potential disruptions and evolving trends. From ongoing labour disputes to fluctuations in freight rates and shifting supply chains, businesses around the world must remain agile to navigate these challenges.
South African Ports
Local ports continue to face port congestion and operational inefficiencies alongside the most recent windy weather conditions. Main ports including Durban, Coega and Cape Town are experiencing varying degrees of delays as follows:
These ongoing challenges are part of broader global shipping disruptions, with impacts on scheduling reliability, especially due to factors like global conflicts and weather. Businesses should continue to plan for potential delays and schedule amendments as we navigate these disruptions into the final months of the year.
We highlight in the images below, vessels currently at anchorage pending berth at our major ports, showing a recent increase outside Durban.
Transnet Anchorage Report 21st October 2024 – Vessels currently at anchorage outside Durban Port.
Container handling at South African ports down – Saaff/Busa
Following a relatively even-keel performance towards the end of September, the start of October was marked by an 8% decrease in container throughput at the country’s ports – from a daily average of 8 072 to 7 384 week-on-week. According to the last Cargo Movement Update, port operations were mainly constrained by inclement weather conditions, equipment breakdowns and shortages.
The update, compiled by the South African Association of Freight Forwarders and Business Unity SA, said: “Strong winds, high swells, and vessel ranges represented the main operational constraints at the Port of Cape Town. “At the same time, adverse weather and equipment breakdowns ensured operational delays in Durban,” over which industry is still absorbing Wednesday’s KwaZulu-Natal High Court ruling in favour of APM Terminals (APM T).
https://www.freightnews.co.za/article/container-handling-south-african-ports-down-saaffbusa
Harbour carriers react with anger following Transnet message
The truck booking system for transporters to collect containers at the Port of Durban, which Transnet swears by, continues to provoke vexatious criticism from harbour carriers who claim it is inefficient and time-consuming, often causing truck drivers to wait 24 hours before loading cargo.
But a message posted yesterday on social media by Transnet Port Terminals (TPT) serves to create the impression that a pilot phase of new initiatives to assist carriers is bearing fruit.
https://www.freightnews.co.za/article/harbour-carriers-react-anger-following-transnet-message
Industry pushes back against proposed hikes in port tariffs
TNPA application will hurt the industry and the economy, says freight forwarders association
The Southern African Association of Freight Forwarders (SAAFF), whose members manage more than 80% of SA’s international trade, said the tariff application by the Transnet National Ports Authority (TNPA) for the next three years would not only hurt the industry but the economy as well. The TNPA has asked the Ports Regulator of SA for a tariff increase of 7.9% in the 2025/26 financial year, 18.61% the following year and 2.52% in the third year. This comes as the authority seeks revenues of R15.6bn in 2025/26, R18.3bn in 2026/27 and R19.4bn in 2027/28.
Global Port Statistics
Port Updates:
During week 42, global ports have experienced significant impacts especially following recent disruptions in China due to Typhoon Bebinca and in the US East Coast and Gulf Coast due to recent strike action and Hurricane Milton.
China – Shanghai and Ningbo, two of the world’s busiest ports were heavily impacted by Typhoon Bebinca with standby delays up to 60 hours at port terminals. Ship lines have recently reported vessel berthing delays of 4-6 days. This congestion has caused a ripple effect across other Asian ports and still ongoing.
US – East and Gulf Coast Ports – dockworker strike early October caused delays concerning container operations and automotive shipments, but recovery showed vast improvements in operations last week. West Coast, specifically Los Angeles and Long Beach reported congestion due to shipments diverted from East coast ports. Main US ports are currently experiencing varying berthing delays between 4-7 days.
Air freight is currently strained with airlines working at max capacity levels after Hurricane Milton.
Latin America – Ports in Mexico, Brazil and Caribbean are experiencing berthing delays of up to 5 days due to high volumes and weather disruptions.
Europe – Rotterdam and Antwerp are experiencing fluctuating congestion levels while routes like Asia-Europe have seen a decline in demand. Hamburg and Bremerhaven port has reported 5-6 day berthing delays while other main ports have on average 4 day delays.
UK – Berthing delays of 4 days at London Gateway Port and further disruptions expected.
India – Capacity constraints continue out of Indian Sub-continent with a 2-3 day average berthing delay at main ports.
Singapore – This is port has been facing significant congestion due to rerouted traffic from the red sea and an early peak as we enter the last quarter of the year. Vessels have experienced up to 7 day berthing delays compared to the ‘normal’ 1 day. The port authorities are working on solutions to alleviate the current backlog best possible.
African ports mainly Tanzania and Nigeria – Dar Es Salaam is extremely congested with vessel omitting berth due to operational issues and a reported berthing delay of 5 days on average. Nigeria ports such as Onne and Lekki are experiencing delays between 2-6 days.
Angola ports are currently severely congested due to increasing cargo volumes and infrastructure limitations. Luanda port faces increased pressure with current operational delays. In Lobito congestion varies by vessel type with a current berthing delay of 3 days.
Lloyd’s: A Geopolitical Conflict Could Cost Global Trade $50 Trillion
Shipping interests have grown used to serious geopolitical disruption over the past few years, from the invasion of Ukraine and Russian attacks on shipping to the Houthi blockade on Red Sea traffic. The possibility of large-scale conflict is baked into industry assumptions at this point, but without a firm metric for the cost. Insurer Lloyd’s has put a number on the maximum potential impact of a hypothetical geopolitical conflict, and it is unfathomably large.
Strikes, storms impacting global freight supply
As global shipping enters the peak holiday season, storms and strikes across the world continue to stretch the international freight sector. Ongoing issues in the United States and Middle East continue to impact shipping across the Asia Pacific region.
Although the recent longshoreman’s strike across America’s east and gulf coasts has had a limited impact on cost, the Atlantic hurricane season which has seen two separate storms hit land in the United States in a matter of weeks, has thrown another variable into an industry that is already stretched due to the continuing Middle East conflict.
https://www.fullyloaded.com.au/strikes-storms-impacting-global-freight-supply/
The Impact of Threats on Global Shipping: Adaptive Supply Chains
Ongoing instability impacts shipping efficiency and has broader economic implications. These disruptions highlight the need for adaptive supply chain strategies and leveraging advanced technologies to navigate increased risks and operational costs.
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.
No freight rate easing on the horizon – Drewry
https://www.freightnews.co.za/article/no-freight-rate-easing-horizon-drewry
Navigating the Digital Seas: Embracing AI for a Smarter Maritime Future
https://www.maritime-executive.com/editorials/navigating-the-digital-seas-embracing-ai-for-a-smarter-maritime-future
Transnet’s recovery plan: challenges and progress amid financial strain
https://www.iol.co.za/business-report/economy/transnets-recovery-plan-challenges-and-progress-amid-financial-strain-41d31d30-e708-4620-ae6e-d33a59469c86
Shipbuilding boom won’t outpace ageing global fleet
https://www.freightnews.co.za/article/shipbuilding-boom-wont-outpace-ageing-global-fleet
Editorial: Global carbon levy on maritime shipping to affect African economies
https://thebftonline.com/2024/10/16/global-carbon-levy-on-maritime-shipping-to-affect-african-economies/
Calling accuracy brought to bear as schedule reliability dips
https://www.freightnews.co.za/article/calling-accuracy-brought-bear-schedule-reliability-dips
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / DHL / Transnet / WeFreight / Beacon / Reuters / MSC / AfricaPorts / Container Statistics / Flexport / SAC