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 Durban Port still heavily congested. Port congestion and delays have been reported with Durban at 13 days, Cape Town at 8 days and Coega at 7 days on average.
Transnet’s Anchorage Report 25/11/2024 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.
After the Bell: Blunder after blunder by Transnet relegates SA to world’s worst port operations
The road for Transnet ports to recover, become globally competitive and open to private sector participation might be prolonged because of self-inflicted problems. High port tariffs and procurement problems are at play.
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. Global trade volumes are increasing in Q4, and container throughput is projected to grow moderately. Key drivers include ongoing demand in the Asia-Pacific region and resilience in North American and European markets, though some demand softness remains due to lower manufacturing output in key sectors.
Air Freight: there has been an increase in peak season volumes, resulting in lengthened transit times, increased congestion, and in some cases, higher freight rates. We expect this trend to continue as we head towards December and have already seen a major increase in exports from South Africa.
Airfreight’s forward planning prevents chaotic Q4 rate hikes
Forward planning by shippers appears to have given the air cargo market a strong – but stable – fourth quarter. Rates are creeping up, but not at a pace normally seen in Q4, and on different lanes from what was expected – nevertheless, they are considerably higher than last year.
https://theloadstar.com/airfreight-market-forward-planning-prevented-chaotic-q4-rate-hikes
Sea Freight: Shipping trends suggest that the sea freight industry is showing resilience, challenges like rates, tighter capacity and ongoing geopolitical instability are key factors shaping Q4 and beyond. There is a current surge in peak season volumes and pre-booking orders well in advance of sailing date is strongly recommended.
Port Updates:
Asia-Pacific:
* Chinese ports like Shanghai, Ningbo, and Qingdao are experiencing congestion due to adverse weather, with numerous vessels waiting for berths.
* Chittagong, Bangladesh, is managing moderate congestion, with yard occupancy at around 77%
Equipment availability: While occasional equipment shortages persist at China’s main ports, the situation remains manageable. For shippers who need firm space on earlier estimated times of departure (ETDs) or specific service/transit times, premium options are available.
Europe:
* Ports like Rotterdam and Felixstowe face delays due to weather conditions such as strong winds. Felixstowe’s Berth Four is nearing full operation by January 2025, but current equipment upgrades are causing backlog issues.
* German ports like Hamburg are grappling with reduced productivity due to high congestion and labour constraints
*Space constraints: Space remains tight in November and December across most carriers for both North and South Europe. New York remains the port in highest demand.
North America:
* Ports in Canada (Vancouver, Montreal) have delays due to recent strikes, leading to backlog issues with dwell times exceeding 5 days in some cases.
* U.S. ports, such as Norfolk and Savannah, are seeing increased vessel congestion, with infrastructure limitations contributing to operational challenges
South America:
* Severe weather has impacted Brazilian ports like Santos and Paranagua, with berthing delays 5 to 10 days.
* Central American ports like Acajutla in El Salvador are facing delays from dock repairs and equipment shortage.
Blank sailings: Planned blank sailings are expected in Weeks 47–52, primarily targeting the US Gulf and the US East Coast (USEC), with departures from both North Europe and the East Mediterranean.
Year-on-year rate changes: Compared to the equivalent week last year, spot prices this year remain significantly elevated, notably from the Asia-Pacific (+25%), MESA (+70%), Europe (+14%), and CSA (+14%), with Africa also +10% higher and North America recording a +5% increase YoY.
More blanked voyages expected as carrier efforts to drive up rates falter
Container spot rates were largely unchanged for a third consecutive week, as it became evident that a 15 November rate hike on Asia-Europe trades had failed to have anything more than a marginal impact on pricing.
https://theloadstar.com/more-blanked-voyages-expected-as-carrier-efforts-to-drive-up-rates-falter
Container Shipping Riding High Ahead of holiday Season
The container shipping market appears to be set for a fruitful period ahead – ‘building on the strong performance observed over the summer, the containership markets remain in solid shape as we head into the pre-holiday season.
https://www.hellenicshippingnews.com/container-shipping-riding-high-ahead-of-holiday-season/
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.
Back to work order sees Canadian ports reopen to a battle against backlogs
https://theloadstar.com/back-to-work-order-sees-canadian-ports-reopen-to-a-battle-against-backlogs/
MSC launches new direct service from EC Region to Northern Europe
Hapag-Lloyd reveals rotation changes to Asia-Europe CGX service
https://theloadstar.com/hapag-lloyd-reveals-rotation-changes-to-asia-europe-cgx-service
Major new challenges for shipping in 2025 make data more important than ever
Could Saldanha trump Cape Town?
https://www.freightnews.co.za/article/could-saldanha-trump-cape-town?
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / Green Worldwide / Transnet / WeFreight / MSC / AfricaPorts / Container Statistics / Flexport / SACO / Hellenic Shipping