Welcome to the March edition of the Global Logistics Update, your essential guide to staying ahead in the dynamic world of international trade. The global logistics landscape is navigating a series of complex challenges and transformations, demanding constant vigilance and adaptability. This update provides an overview of the key challenges and emerging trends shaping the movement of goods worldwide, with a particular focus on the persistent issue of port congestion and the evolving market forces that drive them.
South African Ports
South African ports are integral to our economy, facilitating the movement of goods domestically and internationally, acting as key hubs across Southern Africa. Managed by Transnet National Ports Authority, these ports support a variety of cargo types, including bulk commodities, containers, liquid fuels, and automotive products. The primary ports include Durban, Cape Town, Richards Bay, Ngqura, Port Elizabeth, Port of East London and Saldanha Bay, each with varying degrees of challenges and advancements. We expand on our three main ports as summarised on a weekly basis below:
We highlight in these images vessels currently at anchorage pending berth at our 3 main ports. Port congestion and delays have been reported with Durban at 6 days, Cape Town at 8 days and Coega at 1 day on average.
South Africa’s key ports, particularly Durban and Cape Town, continue to face significant operational challenges that impact their efficiency and the broader logistics landscape. Contributing factors include adverse weather conditions, port inefficiencies, equipment shortages, and infrastructure issues, which have collectively hindered effective cargo handling. Despite efforts by Transnet Port Terminals to deploy new equipment and implement maintenance schedules, these measures have not fully alleviated the congestion. Consequently, there is a growing risk of cargo being diverted to alternative ports in the region.
Esteemed economist joins Transnet’s ICTSI case
Prominent economist, professor in his field at the University of Cape Town, and investment strategist at Investec Wealth & Investment, Brian Kantor, will argue in favour of Transnet’s ongoing Durban High Court privatisation case against APM Terminals.
https://www.freightnews.co.za/article/esteemed-economist-joins-transnets-ictsi-case
Transnet unveils fleet of new straddle carriers and RTG cranes
Durban Container Terminals (DCT) has taken delivery of an R892-million fleet of new straddle carriers and rubber-tyred gantry (RTG) cranes, which are among the first consignments of 100 pieces of cargo handling equipment on order for the terminals this year.
https://www.freightnews.co.za/article/transnet-unveils-fleet-new-straddle-carriers-and-rtg-cranes
Global Ports
Global ports are the linchpins of international trade, serving as the critical interface between maritime transport and land-based supply chains. Their efficient operation is paramount to the smooth flow of goods, impacting everything from consumer product availability to global economic stability. Global port congestion is a complex issue, and we therefore only review basic routing, infrastructure demands and vessel berthing delays.
Port Updates:
Ports not mentioned under each region, experience minor berthing delays of less than 2 days.
AFRICA & INDIAN OCEAN ISLANDS
Kenya/Nigeria/Senegal– Berthing delays of 4 days experienced at main ports
Tanzania – Berthing delays of 6 days experienced at Dar es Salaam port.
Mozambique – Berthing delays of 3 days experienced at Maputo port
Mauritius – Port closed – Mauritius is currently experiencing cyclonic weather conditions which has led to all economic activity being stopped. The situation is expected to improve over the weekend with services resuming on Monday, 3rd March – TBC
*Nigeria is still experiencing high levels of congestion at Apapa port. Please expect delays*
NORTH AMERICA
Canada
Montreal/Toronto/Vancouver – Berthing delays of 10 days experienced at main ports.
*Vessel Severe winter weather has had a negative impact in most areas of Canada this past week. Snowfall of up to 70 cm was received on the East Coast, temporarily interrupting operations in Montreal, Saint John and Halifax
USA
Norfolk/New York/Charleston/Miami/Houston/Oakland – Berthing delays of 2-6 days experienced at main ports
Savannah – Berthing delays of 9 days experienced due to fog and river closures impacting vessel operations. Port expects a 4 week backlog.
*Vessel schedules continue seeing changes at last minute without prior notice by carriers.
*US ports have recently seen major congestion and delays
LATIN AMERICA
Argentina/Brazil/Mexico – Berthing delays of 3 days on average experienced at main ports.
*Overall productivity has improved in the last week due to previous backlog.
NORTH WEST CONTINENT, UNITED KINGDOM, MEDITERRANEAN
Belgium/France/Germany/Italy/Netherlands – Berthing delays of 5-8 days experienced at main ports
Turkey/Sweden – Berthing delays of 2 days experienced at main ports
UK – Berthing delays of 3 days experienced at London Gateway Port. Currently clearing backlog
*Labour strikes in the Netherlands, Port of Rotterdam, intensifies affecting regional trade and causing disruptions in cargo movement.
INDIAN SUB-CONTINENT & MIDDLE EAST
India/UAE/Sri Lanka – Berthing delays of 2 days experienced at main ports
*FCL containers transhipping in Columbo have expected delays of 1-2 weeks.
*High increase of volume shipped through Jebel Ali with minimal congestion experienced.
ASIA PACIFIC (Including Oceania)
Korea/Malaysia/Shanghai – Berthing delays of 2-3 days experienced at main ports
*FCL containers transhipping in Tanjung Pelepas have expected delays of 1-2 weeks.
Singapore – Berthing delay of 1-2 days with an expected 3-week transshipment delay due to space constraints.
Carriers put on a brave face amid further decline in ocean spot rates
Container spot freight rates on the main east-west trades saw another week of declines, although, in contrast to most of January and February, the falls this week were led by the Asia-North America trades.
https://theloadstar.com/carriers-put-on-a-brave-face-amid-further-decline-in-ocean-spot-rates
MSC decreases capacity on Asia-N Europe trade lanes
The world’s largest container line has decided to withdraw its largest vessels from the Asia–North Europe route in what appears to be a strategic realignment of its services.
https://www.freightnews.co.za/article/msc-decreases-capacity-asia-n-europe-trade-lanes
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.
Port of Cape Town harbour carrier update: TPT vs Sata
https://www.freightnews.co.za/article/port-cape-town-harbour-carrier-update-tpt-vs-sata
SA climbs in logistics index amid shifting global supply chains
https://www.freightnews.co.za/article/sa-climbs-logistics-index-amid-shifting-global-supply-chains
Global transporters invest despite disruption fears
https://www.freightnews.co.za/article/global-transporters-invest-despite-disruption-fears
Truckers say cargo logjams at Nhava Sheva are testing supply chains
https://theloadstar.com/truckers-say-cargo-logjams-at-nhava-sheva-are-testing-supply-chains
Business calls for end to French post strikes, but unions plan more
https://theloadstar.com/business-calls-for-end-to-french-port-strikes-but-unions-plan-more
Time to reverse ‘decade-long decline’ in South African logistics
https://theloadstar.com/time-to-reverse-decade-long-decline-in-south-african-logistics
Over 100 new pieces of equipment coming to Durban this year
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / Openpr / Transnet / WeFreight / MSC / AfricaPorts / Container Statistics / Flexport / SACO / Hellenic Shipping / Worldcargonews/ Maritime Executive / GCaptain/ Linerlytica