GLOBAL LOGISTICS UPDATE – 26 AUGUST 2024

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Welcome to week 35 of the Global Logistics Update. We continue to bring you the latest insights, trends, and updates from the world of logistics. As we navigate through the second half of the year, the logistics industry continues to face dynamic challenges and opportunities, from technological advancements to evolving market demands.

South African Ports

South African ports continue with significant challenges in congestion and equipment breakdowns. Transnet recently published their landside Improvement Intervention for Durban Pier 2 in attempt to ease the current congestion and pilot the new block release appointment system, but the reality remains with transporters still struggling to obtain sufficient slots to uplift containers from Port. Cape Town Terminal had several mobile crane breakdowns since last Thursday, resulting in major operational disruptions and specifically vessel turnaround times. 

Durban and Cape Town yet again experienced strong winds and standby periods causing further delays. Port congestion and delays have been reported with Durban at 13-19 daysCape Town 7-10 days and Coega 7 days on average. 

We highlight in the images below, vessels currently at anchorage pending berth at our major ports, Local delays recorded, as well as Transnet statistics for Durban showing most delayed vessels with the number of days at anchorage:

Transnet Anchorage Report Published 26th August 2024 showing ETA delays in Durban only:

Port statistics for the month of July 2024, covering the eight commercial ports under the administration of TPT, are now available below:

Local Exports: Please note that Hazardous cargo acceptance on exports proves challenging as carriers prioritize loading alternative cargo types due to ongoing reefer season. Please expect delays in obtaining hazardous approval from carriers.

Global Port Statistics

Port Updates:
With peak season traditionally picking up in September – We expect demand on space across all modes of transport to increase and therefore encourage all our customers to start prebooking shipments in advance of cargo ready date.

India:
‘Globally port workers have expressed their frustrations during contract negotiations and called for significant wage increases after working through the pandemic to keep global commerce functioning. The latest problems emerged in India where the six labor unions that represent workers across the 12 major seaports are laying the groundwork for a nationwide strike scheduled to begin in less than two weeks on August 28 and to run until terms are reached for a new contract.’
https://www.maritime-executive.com/article/indian-dockworkers-set-date-for-strike-after-three-years-of-negotiations

Australia:
The largest container and cargo port in Western Australia, Fremantle, is facing the prospects of a paralyzing 48-hour strike next week by pilot boat operators and vessel traffic service officers. Analysts are warning of weeks of delays after the strike and the potential for repercussions across Asia while the union is saying the strike might also be prolonged if its wage demands are not met.
https://www.maritime-executive.com/article/australia-s-fremantle-port-will-be-paralyzed-by-strike-next-week

USA:
Defying forecasts of a potentially slowing U.S. economy, the ports of Los Angeles and Long Beach each had record volumes in July in part as imports accelerated to avoid potential disruptions due to the Red Sea as well as a possible fall port strike on the U.S. East Coast. Port executives however remain optimistic for the near-term outlook.
https://www.maritime-executive.com/article/volumes-soar-at-socal-ports-setting-records-as-shippers-accelerate-pace

U.S. Ports and Canadian Railway:
The looming labor strikes at Canadian railways and U.S. East and Gulf Coast ports are set to cause significant disruptions to North American supply chains. The strikes are expected to create severe operational challenges for the container logistics industry, leading to increased costs for shippers and cargo owners, delays and diversions.
https://www.globaltrademag.com/strikes-at-u-s-ports-and-canadian-railways-threaten-north-american-supply-chains/

https://africaports.co.za/2024/08/23/africa-ports-ships-maritime-news-18-19-august-2024/#8871

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.

Asia-Europe spot rates soften, while transpac prices harden as dock strike threatens
https://theloadstar.com/asia-europe-spot-rates-soften-while-transpac-prices-harden-as-dock-strike-threatens/

The challenges for containerships braving the waters around the Cape
https://theloadstar.com/the-challenges-for-containerships-braving-the-waters-around-the-cape/

Port chaos hits supplies for popular Woolworths hot drinks
https://www.news24.com/fin24/companies/port-chaos-hits-supplies-for-popular-woolworths-hot-drinks-20240821

Port of Cape Town working hard to sort out STS breakdowns
https://www.freightnews.co.za/article/port-cape-town-working-hard-sort-out-sts-breakdowns

Industry must aim for export market expansion
https://www.freightnews.co.za/article/industry-must-aim-export-market-expansion

TT Club: To Fight Theft and Trafficking, Check Container Seals
https://www.maritime-executive.com/article/tt-club-to-fight-theft-and-trafficking-check-container-seals

Stiff penalties a possibility for transporters in DRC
https://www.freightnews.co.za/article/stiff-penalties-possibility-transporters-drc#:~:text=According%20to%20a%20source%20working,the%20value%20of%20their%20loads

Sources & References 

Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / MSC / Transnet / WeFreight / Beacon / Joc / MSC / Maersk / Container Statistics / Flexport / SACO

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