Welcome to the January 2025 edition of our Global Logistics Update. The logistics industry continues to evolve rapidly, influenced by a dynamic mix of geopolitical events, technological advancements, and changing consumer demands. We aim to bring you the latest updates on shipping trends, challenges, and opportunities worldwide in order to navigate this ever-changing landscape.
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 main ports including Durban, Coega and Cape Town 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 3 main ports. Port congestion and delays have been reported with Durban at 10 days, Cape Town at 9 days and Coega at 2 days on average.
While South African ports are currently grappling with operational inefficiencies, financial losses, and congestion, strategic investments and infrastructure reforms are underway to address these issues. The success of these initiatives will be pivotal in enhancing port performance and supporting the nation’s economic recovery in the coming years.
South Africa’s Transnet half-year loss widens to $117 mln
Transnet, the state-owned entity overseeing South Africa’s ports and railways, reported a half-year loss of 2.2 billion rand ($117.48 million) for the period ending September 30, 2024, an increase from a 1.6 billion rand loss in the same period the previous year. This decline is attributed to higher operational costs and persistent inefficiencies, which have adversely affected the export of key commodities like coal and iron ore, thereby hindering economic growth.
https://www.reuters.com/world/africa/south-africas-transnet-half-year-loss-widens-117-mln-2024-12-31
Limited tariff increases for Transnet ports
The Ports Regulator of South Africa (PRSA) has announced its decision on proposed port tariff changes for financial year 2025-26, with far lower increases than requested by Transnet National Ports Authority (TNPA). TNPA had asked for an average tariff increase of 7.9% for 2025-26, with a preliminary proposal for 18.61% in 2026-27 and 2.52% for 2027-28.
https://www.worldcargonews.com/news/2025/01/limited-tariff-increases-for-transnet-ports
Global Ports
Critical Global Port Statistics and Facts to Know into 2025
The year 2024 was a transformative one for global logistics and maritime trade. Global maritime trade grew by 2.4% in 2024, marking a recovery from the pandemic’s supply chain disruptions. However, chokepoints such as the Suez and Panama Canals remain vulnerable to geopolitical and environmental pressures, including droughts that restrict vessel traffic. Elections in Europe and the U.S. highlighted the need for international cooperation in addressing these vulnerabilities, with increased emphasis on alternative routes and green technologies like hydrogen-powered vessels.
The Port of Shanghai, handling over 47 million TEUs in 2024, remains the world’s busiest container port. However, operations are expected to slow starting the second week of January 2025 due to the Lunar New Year holiday, which traditionally impacts production and exports from China. Policy shifts in trade agreements, influenced by elections in Europe and the U.S., may play a role in diversifying trade routes to reduce dependency on single regions.
The LA port strike in 2024 disrupted operations at one of the United States’ most critical trade hubs, affecting 20% of containerized imports. With a second strike planned for January 2025, industries reliant on just-in-time inventory are diversifying supply chains by utilizing East Coast ports and inland facilities.
U.S. ports rebounded strongly in 2024, with the Port of Los Angeles and Long Beach recording a 14.7% combined growth, processing over 9 million TEUs. Improved efficiency measures, including expanded rail connectivity and AI-driven cargo management systems, have driven this growth. The elections emphasized investments in infrastructure and technology, aligning with broader strategies to sustain this recovery.
Modernized ports like the Port of Virginia led the charge in efficiency, with a 26.4% TEU throughput increase between 2020 and 2024. Investments in AI-powered scheduling and state-of-the-art super post-Panamax cranes have positioned it as a model for operational excellence. European elections underscored the importance of similar digital transformations, ensuring ports remain competitive in a dynamic trade environment.
Singapore experienced severe congestion in mid-2024 as vessels rerouted from the Red Sea due to geopolitical tensions. The backlog disrupted schedules across Europe and the Americas, highlighting the vulnerability of transshipment-dependent supply chains. European and U.S. elections called for enhanced infrastructure resilience and multi-port collaboration to address such single-point failures.
European ports like Rotterdam and Antwerp-Bruges returned to growth in 2024 after a challenging 2023, aided by increased trade with Asia. However, these ports face capacity limitations and competition from emerging Baltic hubs. The elections in France and the U.K. have fuelled policy initiatives supporting multimodal connectivity and automation to sustain recovery and compete globally.
Global port infrastructure investments reached $73 billion in 2024 and are projected to grow to $132.6 billion by 2030. This includes significant spending on sustainable energy initiatives like electrified port equipment and green hydrogen fuelling stations.
The adoption of super post-Panamax cranes surged in 2024, enabling ports to handle the largest container vessels. The Port of Savannah alone added 20 such cranes, boosting its handling efficiency by 25%. Elections globally have spotlighted the role of technological upgrades in reducing turnaround times and supporting growing trade volumes.
The potential January 2025 strike at the Port of Los Angeles is expected to significantly impact supply chains, particularly for industries reliant on West Coast imports like electronics and automotive components. Anticipated disruptions have prompted businesses to stockpile inventory and secure alternative logistics solutions. The U.S. election’s outcomes have emphasized the need for comprehensive labour agreements to ensure stability.
The trends shaping port performance have significant implications for supply chain professionals and businesses relying on global trade:
- Strategic Planning: Companies must build flexibility into their supply chains by diversifying shipping routes and leveraging smaller or alternate ports to mitigate risks such as strikes or congestion.
- Technology Adoption: Analytics tools enable companies to track shipments in real-time, benchmark freight rates, and optimize routing for cost and efficiency.
- Sustainability Mandates: Businesses need to align their operations with green logistics trends, which are becoming critical for compliance and market competitiveness. Election-driven mandates on sustainability are making this alignment increasingly urgent.
As we approach 2025, global ports are at the crossroads of transformation, driven by automation, sustainability, and strategic investments. These advancements, coupled with challenges like labour unrest and geopolitical tensions, are reshaping the logistics landscape.
Adapted from https://www.gocomet.com/blog/global-port-statistics/
China – Lunar New Year 2025 starts on Wednesday, January 29th, and celebrations culminate with the Lantern Festival on February 12th. Celebrations last up to 16 days, but only the first 7 days are considered a public holiday. Please expect delays as many companies will close during this period (January 29th–February 4th, 2025).
Carriers plan for new US east coast port strike as contract deadline looms
The current master contract between workers and employers on US east and Gulf coast ports will expire on 15 January and, if no new agreement is reached by then, a coast-wide strike on 16 January is expected.
https://theloadstar.com/carriers-plan-for-new-us-east-coast-port-strike-as-contract-deadline-looms
Canal-ysis: the world’s waterways in focus for 2025
Meanwhile, despite suffering a 60% shortfall in revenues from the Suez Canal, equivalent to around $7bn, Egypt has just completed a new 10km channel which will enable vessels plying the canal to pass one another more effectively.
“This expansion will boost the canal’s capacity by an additional six to eight ships daily and enhance its ability to handle potential emergencies,” the Suez Canal Authority said in a statement last week.
https://theloadstar.com/canal-ysis-the-worlds-waterways-in-focus-for-2025
AI set to tackle Increasingly complex logistics challenges
Advanced technological solutions could offer an answer to the challenges of safety and security in supply chains by allowing shippers to know their logistics partners better.
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.
Opinion: Transnet’s rail monopoly hits end of the line
https://www.freightnews.co.za/article/opinion-transnets-rail-monopoly-hits-end-line
South Africa’s rail freight network crippled by theft and vandalism
Strong gains on the transpacific as US imports swell and GRIs begin to bite
https://theloadstar.com/rates-update-week-1-strong-gains-on-the-transpacific-as-gris-begin-to-bite
Lines expected to avoid Suez for some time still
https://www.freightnews.co.za/article/lines-expected-avoid-suez-some-time-still
Trump tariffs could boost Chinese influence in South-east Asian rail network
https://theloadstar.com/trump-tariffs-could-boost-chinese-influence-in-south-east-asian-rail-network
NYK looks ahead to a year of Trump opportunities and regional delegation
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / Openpr / Transnet / WeFreight / MSC / AfricaPorts / Container Statistics / Flexport / SACO / Hellenic Shipping / Worldcargonews