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 an increase outside Durban & Coega. Port congestion and delays have been reported with Durban at 16 days, Cape Town at 11 days and Coega at 7 days on average.
Transnet’s Anchorage Report 4/11/2024 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.
D&D charges – harbour carriers claim they are held to ransom
Officials at the Port of Durban have refused to be drawn on the dreaded topic of detention and demurrage (D&D) charges, the bane of existence for transporters and cargo agents who, for years, have complained that the freight-forwarding industry is held to ransom by the liner trade.
At the centre of it all, as the primary cause for the lack of efficient and affordable container movement, is South Africa’s state-owned company (SOC) responsible for trade facilitation at the country’s ports – Transnet.
https://www.freightnews.co.za/article/dd-charges-harbour-carriers-claim-they-are-held-ransom
Transnet blames the weather as it shrugs off demurrage issue
Transnet has reiterated its stance about demurrage fees, claiming that it neither charges for the late return of containers by transporters, nor is it responsible for delay-related costs imposed by shipping lines on harbour carriers and the clients they represent.
https://www.freightnews.co.za/article/transnet-blames-weather-it-shrugs-demurrage-issue
Transnet is responsible for business closures – CT harbour carriers
Transporters responsible for land-side container movement at the Port of Cape Town are echoing what their industry peers at the Port of Durban continue to complain about – that Transnet’s truck slot booking and perceived favouring of other modes of transport are putting them out of business.
According to Derick Ongansie, director at the South Africa Transporters’ Alliance, at least three harbour carrier companies have gone out of business since the state-owned company (SOC) responsible for logistics introduced a truck booking system meant to control port terminal access.
https://www.freightnews.co.za/article/transnet-responsible-business-closures-ct-harbour-carriers
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 stabilizing, and container throughput is projected to grow moderately by around 4.1% after past fluctuations. 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.
Port Updates:
Port congestion, although reduced from pandemic peaks, remains a recurring issue, especially in high-traffic regions. Challenges such as labour disruptions, capacity limitations, and geopolitical conflicts near vital trade routes (Red Sea & Panama Canal) could affect reliability in certain areas. However, new investments in digital systems and automation across several global hubs aim to enhance efficiency and reduce delays, positioning ports for improved handling capacity in the near future.
USA
The Los Angeles/Long Beach port complex continues to face substantial congestion due to high cargo volumes and labour challenges, with average rail-bound dwell times documented at approx 6 days for on-dock containers. Off-dock rail service is experiencing delays due to trucker and chassis availability issues, which have intensified congestion and increased dwell times to about 17 days for some shipments. Extreme cases have shown containers sitting up to six weeks before loading onto trains, reflecting a critical shortage in rail car capacity across the network. Inland terminals such as Chicago, Dallas, and Kansas City are similarly affected by rail car shortages, slowing the availability of containers after train arrival and prompting carriers to adjust bookings temporarily. Some have even rerouted cargo to other West Coast ports, with these changes anticipated to last 7–10 days as rail congestion is managed.
Expect More Delays: Perfect Storm to Crunch Global Shipping in 2025
Huge volumes of shipping vessels are now “bunching” at ports and terminals, with global shipping lanes “out of whack” due to the Red Sea Crisis and problems with the Panama Canal. These add strain to an industry struggling with spiralling costs and a shortage of vessels.
https://woodcentral.com.au/expect-more-delays-perfect-storm-to-crunch-global-shipping-in-2025/
Panama Canal overcomes challenges to post positive results
Victor Vial, vice president of finance for the Panama Canal Authority, said revenues for the interoceanic route had grown by 1%, with an estimated increase of 1.8 billion PAB over five years. “This reflects the reliability of the route and its resilience during the challenging pandemic period and adverse climate conditions,” he added.
https://www.freightnews.co.za/article/panama-canal-overcomes-challenges-post-positive-results
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 to rise this month
https://www.freightnews.co.za/article/fuel-price-rise-month
Lengthiest container vessel calls at the Port of Cape Town
https://www.freightnews.co.za/article/lengthiest-container-vessel-calls-port-cape-town
Maersk reports strong results across all segments
https://www.freightnews.co.za/article/maersk-reports-strong-results-across-all-segments
New container innovation could solve old supply-chain issues
https://www.freightnews.co.za/article/new-container-innovation-could-solve-old-supply-chain-issues
Lufthansa Cargo adds capacity as Asia Pacific ecommerce boosts revenue
https://theloadstar.com/lufthansa-cargo-adds-capacity-as-asia-pacific-ecommerce-boosts-revenue/
AIIM announces partnership to revive South Africa’s rail network
https://www.freightnews.co.za/article/aiim-announces-partnership-revive-south-africas-rail-network
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / Green Worldwide / Transnet / WeFreight / MSC / AfricaPorts / Container Statistics / Flexport / SACO