Welcome to the latest Global Logistics Update. For the month of June, we continue to focus on the pressing topic of port congestion around the world, especially the congestion from Asian ports as well as the current challenges and delays as reported across all South African ports.
South African Ports
Port congestion in South Africa is a growing concern for the shipping Industry. The country’s ports face rising pressure especially in Durban as we continue to experience berthing delays of 2-3-weeks and an average of 3-7 days at PE, Coega and Cape Town. Wehighlight in the images below, vessels currently at anchorage pending berth at our major ports with Durban port being heavily congested.
We specifically make mention of the vessel Bay Bridge which is expected to arrive outside Durban on the 26th June and will wait at anchorage to berth only the 9th July causing a major delay for importers as port operations continue to work at a slower rate compared to earlier months. Carrier schedules are still erratic, and we continue to see changes to voyages last minute, vessels with split discharge and port omissions.
LOCAL PORT DELAYS RECORDED
Planning for the unexpected: Importers/Exporters
‘The South African Association of Freight Forwarders Cargo Movement Update of 24 May notes that the global shipping industry continues grappling with geopolitical tensions, climate change and pandemic aftermaths.’
‘Current issues include persistent port congestion, which affects 5.3% of the global fleet. This is primarily due to geopolitical crises like the Red Sea conflict, which has increased transit times on Asia-Mediterranean routes by 39%, SAAFF adds.’
‘Furthermore, he points out that delays in ocean freight are leading to higher air freight rates and lower capacity in China and India.’
“These longer transit times are impacting South Africa in the form of equipment and vessel shortages,” she says.
“Equipment is also failing at South African ports. Compounding the problem is that MSC, the largest carrier out of the Far East to South Africa, has decided to allocate its bigger vessels to trade between the Far East and Europe. This has cut about 4,000 TEU of volume from the Far East to South Africa. Suddenly, people are trying to find space on smaller vessels for equipment.”
“We always advise our clients to extend their lead times and let us know four weeks ahead. We factor in time delays and work backwards to meet deadlines,” Nielson adds.
Complete reading here: https://www.businesstechafrica.co.za/business/trade-and-commerce/2024/06/16/planning-for-the-unexpected-importers-exporters/
Global Port Congestion and Statistics
Asia-Pacific
Severe capacity constraints continue to be experienced out of Asia. This along with erratic scheduling, high numbers of vessel roll overs and blank sailings is resulting in delays for shipping out of Asian ports.
- HONG KONG/TAIWAN/THAILAND/VIETNAM – Berthing delay of 1 day
· KOREA – Berthing delays of 3 days at Busan port
· MALAYSIA – Berthing delays of 2 days at Port Kelang
- NANSHA/SHANGHAI/NINGBO – Berthing delays of 2 days
- QINGDAO – Berthing delays of 3 days
- SHEKOU/YANTIAN – Berthing delays of 1-2 days
- XIAMEN/XINGANG – Berthing delays of 3 days
- SINGAPORE – Berthing delays of 3 days and heavily congested in transhipments 3-4 weeks
CHINA PORT DELAYS RECORDED
Tick tock, get the stock: ship now to stay ahead of the game
Importers are urged to prioritise planning and shipping now, moving cargo earlier than normal, ahead of peak sales for the November and December period to ensure supply chain continuity and adequate stock holdings.
https://www.investec.com/en_za/focus/logistics-update/ship-now-to-stay-ahead-of-the-game.html
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 handling at South African ports falls 30.3% in one week
https://www.freightnews.co.za/article/container-handling-south-african-ports-falls-303-one-week
Red Sea crisis hits Suez Canal revenue
China records strongest seafarer wage growth
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / MSC / Transnet / WeFreight / Beacon / Joc / MSC / Maersk/ AfricaPorts