Welcome to another interesting Global Logistics Update for the month of September. 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
South African ports continue to face delays and operational challenges. Week 38 brought about adverse weather conditions, reduced berth capacity and Transnet inefficiencies across all main ports. Maersk again made amendments to their schedules into Cape Town with vessels omitting and discharging in Coega instead.
Durban port continues to experience significant port congestion causing vessels to remain at anchorage for 1-2 weeks, and transporters are still struggling with the new truck appointment system. Pier 1 was heavily delayed due to equipment challenges (broken RTG) and all terminals heavily delayed due to adverse weather conditions this past weekend. Coega had recovered from the previous week’s port congestion but still shows somewhat delay in discharge rate and high vessel count waiting at anchorage to berth also due to slower operations with adverse weather. Cape Town port recently faced delays with vessels waiting to berth for longer periods than usual, due to inefficiencies in the container booking system. Congestion in Cape Town has eased and recovery underway from recent winds.
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 17 days, Cape Town 9 days and Coega 10 days on average.
Has Transnet botched the ‘privatisation’ of the Durban container terminal?
A court case underway in Durban will determine this
What was intended as a red-carpet deal that would usher in more such PSPs and billions of rands in private sector investment is now mired in legal and accounting arguments. https://www.moneyweb.co.za/news/south-africa/has-transnet-botched-the-privatisation-of-the-durban-container-terminal
Global Port Statistics
Port Updates:
Southern California’s two large ports, which are also the largest in the United States, each reported an ongoing surge in volumes during August and an expectation that volumes will continue to be strong. The ports believe that some cargo has been diverted while persistent strong consumer sales, a positive economy, and efforts to manage by importers, are all contributing to the increases in volumes.
Canadian energy company Woodland Biofuels has reached an agreement to build a $1.35 billion wood waste-to-biomethane plant at the Port of South Louisiana, the firm announced Wednesday. Upon completion, it would be one of the largest renewable natural gas refineries in the world. The new plant would be located at a multimodal facility at the Port of South Louisiana, and would have financial and workforce support from the State of Louisiana and local partners. If all proceeds as planned, phase one of the project – gas production – could begin as early as 2028.
US – Today marks two weeks till the likely first day of a crippling strike for containers and Ro-Ro traffic at U.S. East and Gulf Coast ports as the International Longshoremen’s Association has refused to resume negotiations on the master contract. With no signs of government intervention despite urging from shippers, the industry is looking for alternatives while analysts attempt to forecast the impact.
Europe– With EU Summer holidays behind us and peak season now in full swing – Increased demand and space constraints expected to increase. Vessel schedule delays continue to impact the region and EU Summer holidays has resulted in the usual reduction of staff at many key ports and terminal.
Indian Sub-Continent– remain under pressure with increased demand causing capacity constraints. Nhava Sheva’s APMT terminal is also battling serious congestion caused by excessive container stock (exceeding 20,000 TEUs). Vehicles are now taking up to 18 hours to enter. This has a knock on effect on other terminal movements.
Container lines have reported significant vessel delays at Mundra Port, which bears the brunt of the country’s containerised trade, after torrential rain and flooding swept through the coast early September. Bottleneck remains a current challenge and blank sailings from shipping lines.
Mozambique – Cornelder de Moçambique (CDM) has constructed a new reefer yard at the Port of Beira to meet the rising demand for seafood and citrus exports. The newly constructed yard, with a capacity of 64 reefer plugs, is located conveniently near the quays to help alleviate pressure on the existing yard, which currently holds 144 reefer plugs.
Middel East – Concerns over a wider conflict in the Middle East have prompted international airlines to suspend flights to the region or to avoid affected air space. Various airlines have reported suspension of flights to Riga, Tel Aviv, Lebanon and Beirut.
China – Golden week holidays are approaching, which also means a high demand for space in the weeks prior and post 1 – 7 October.
Singapore – This port remains heavily congested impacting services imports and exports that are routed via Singapore. In a drive to avoid a fall in container rates, many shipping lines have blanked several export sailings from Asia – this prior to the Chinese national holiday in early October. The blank sailings will likely result in upward rate pressure.
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.
Fuel price drop on the cards
https://www.freightnews.co.za/article/fuel-price-drop-cards
Market reacts to news of DSV buying DB Schenker
https://www.freightnews.co.za/article/market-reacts-news-dsv-buying-db-schenker
Transport costs ease as inflation dips below 4.5%
https://www.freightnews.co.za/article/transport-costs-ease-inflation-dips-below-45
Biden Won’t Block Potential Strike at East Coast Ports, Administration Official Says
https://www.usnews.com/news/top-news/articles/2024-09-17/biden-wont-block-potential-strike-at-east-coast-ports-administration-official-says
Positive market growth buoys marine insurance – underwriter
https://www.freightnews.co.za/article/positive-market-growth-buoys-marine-insurance-underwriter
Line launches new surcharge to mitigate supply chain disruption
https://www.freightnews.co.za/article/line-launches-new-surcharge-mitigate-supply-chain-disruption
Crane Collapses on to MSC Feeder Alongside in Chinese Port
https://www.maritime-executive.com/article/crane-collapses-on-to-msc-feeder-alongside-in-chinese-port
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / MSC / Transnet / WeFreight / Beacon / Reuters / MSC / AfricaPorts / Container Statistics / Flexport / SACO