Welcome to the October edition of our Global Logistics Update. The logistics industry continues to navigate through the landscape of potential disruptions and evolving trends. From ongoing labour disputes to fluctuations in freight rates and shifting supply chains, businesses around the world must remain agile to navigate these challenges.
South African Ports
During week 40, particularly Durban and Richards Bay, faced significant congestion issues on the landside operations and high traffic volumes. Port of Durban as well as Cape Town experienced standby operations due to strong winds and equipment challenges. Durban port congestion remains critical with over 20 vessels still waiting at anchorage and with a waiting time up to 18 days to berth. Efforts are ongoing to boost efficiency at Durban Pier 2 from daily throughput 2500 to 4000 TEU’s, which will take some time to achieve, and Pier 1 with a smaller target of 1500 TEU’s per day. Appointment slots were also constrained due to high volume of containers moving through Durban terminals. Cape Town and Coega reported slower operations than usual and congestion in the landside areas.
Ongoing infrastructure challenges, equipment failures, and previous delays in dredging have compounded the port congestion situation. These issues have resulted in longer vessel waiting times and slow container handling, impacting the broader supply chain. Although efforts are being made to address these issues, it will take some time before congestion is significantly reduced
We highlight in the images below, vessels currently at anchorage pending berth at our major ports, showing a recent increase outside Durban.
Transnet Anchorage Report 7th October 2024
Port congestion and delays have been reported with Durban at 17 days, Cape Town 8 days and Coega 8-10 days on average.
Global Port Statistics
Port Updates:
East African Ports: Some congestion experienced at these ports with no severe impact, some delays noted between Luanda and Lobito ports recently.
Angola – Berthing delays of 5 days experienced at Luanda Port
Tanzania – Berthing delays of 5 days experienced at Dar es Salaam port.
Kenya/Ghana/Mozam/Nigeria/Senegal – Berthing delays of 2-4 days experienced at main ports
Mauritius/Ivory Coast – Berthing delays of 2 days experienced at main ports
Canada:
Toronto – Berthing delays of 9 days experienced at this port
Montreal – Berthing delays of 2 days experienced at this port
Vancouver – Berthing delays of 2 days experienced at this port
Argentina/Brazil/Mexico – Berthing delays of 2-6 days experienced at these ports.
North West Continent, UK, Meditterranean: Vessel schedule delays continue to impact the region.
Belgium/Netherlands/UK – Berthing delays of 4 days experienced at major ports.
Germany – Berthing delays of 5 days experienced at Hamburg and 1 day at Bremerhaven
France/Italy/Spain/Sweden – Berthing delays of 2-4 days experienced at major ports
Turkey – Berthing delays of 5 Days experienced at Istanbul port
Indian Sub-Continent & Middle East: Capacity constraints continue on services out of the Indian Sub-Continent
India –Berthing delays of 2 days experienced at Nhava Sheva and Chennai ports
UAE – Berthing delay of 1 day experienced at Jebel Ali port.
Schedule amendments still impacting both inbound and outbound cargo and container movements.
APAC and Oceania:
China – Currently in the Golden week holidays ending 7th October. Berthing delays on average 1-2 days at most ports.
Ningbo/Shanghai/Qingdao – Berthing delays of 3-4 days experienced at main ports
Korea/Taiwan – Berthing delays of 2 days experienced at main ports
Singapore – Berthing delays currently 1 day, Transhipments have expected delays of 2-3 weeks on FCL’s.
US: The most significant disruption was the strike at U.S. East Coast and Gulf Coast ports, which began on October 1, 2024 leading to widespread disruptions across the supply chain.
Schedule amendments are currently announced with minimal notice by carriers.
New York/New Jersey – Vessel waiting time 2 days. Truck line congestion continues at Port Elizabeth / Port Newark roadways.
Norfolk/Charleston – Vessel waiting time is up to 1 day.
Savannah – Vessel waiting time is up to 5 days.
Miami/Port Everglades – Vessel waiting time is up to 6 days.
Houston – Vessel waiting time is up to 2 days.
Oakland – Vessel waiting time is up to 3 days.
Los Angeles/Long Beach – Vessel waiting time is up to 1 day.
Seattle – Vessel waiting time is up to 8 days.
Globally, container freight rates remain varied. While rates between Europe and the U.S. East Coast have seen slight increases due to the strike, rates on Asia-to-Europe routes have continued to decline due to lower demand. The ongoing Chinese Golden Week holiday is expected to further impact trade flows on these routes
The biggest drop was on the Asia-North Europe trade, where Drewry’s World Container Index showed a 9% decline on the Shanghai-Rotterdam route to $4,682 per 40ft. However, this is still nearly 300% higher than the same time last year, when rates were plummeting.
Xeneta’s XSI short-term rate for Asia-Europe fell 15% this week, landing at $5,424 per 40ft.
New routes between China and Bangladesh – Following strained political relations between Bangladesh and India, shipping lines are launching new routes to support Bangladesh’s trade with China. Pacific International Lines (PIL) has introduced a direct weekly service from China to Chittagong, cutting transit time to eight days, compared to the usual 20-22 days via regional hubs like Singapore.
Asia – As the peak airfreight season approaches, most Asian gateways are operating smoothly, but bottlenecks are emerging in Southeast Asia and the Philippines, according to the Dimerco Asia Pacific Freight Report. Despite lower volumes in September, airfreight demand is expected to surge through mid-October, driven by China’s Golden Week holiday.
Intra-Asia routes will face the most strain, while long-haul capacity may be redirected to meet demand. Singapore’s Changi Airport is already facing 1-2 day backlogs, while congestion is critical in the Philippines, with some shipments being rerouted. Airfreight capacity is tight across most Asia Pacific gateways to Europe and the US, with only Hong Kong and Taiwan offering sufficient lift to the US.
Ocean freight is also facing issues, with blank sailings causing challenges for exporters. Container shipping cancellations are up 13%, particularly affecting routes from Asia to the US and Europe, leading to declining freight rates.
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.
Budget underspend worries Western Cape exporters
https://www.freightnews.co.za/article/budget-underspend-worries-western-cape-exporters
US port strike ends with tentative labour agreement
https://www.freightnews.co.za/article/us-port-strike-ends-tentative-labour-agreement
GQEBERHA – South African ports are showing signs of resurgence and this could benefit the economy.
https://www.enca.com/top-stories-videos/watch-sa-ports-showing-signs-resurgence-creecy
Port performance in SA stable for the second week in a row
https://www.freightnews.co.za/article/port-performance-sa-stable-second-week-row
Grindrod deal points to SA firms favouring port of Maputo
https://www.businesslive.co.za/bd/national/2024-09-30-grindrod-deal-points-to-sa-firms-favouring-port-of-maputo/
Middle East Maritime Threat Escalates: Israeli and Lebanese Ports in the Crosshairs, Ambrey Warns
https://gcaptain.com/middle-east-maritime-threat-escalates-israeli-and-lebanese-ports-in-the-crosshairs-ambrey-warns/
Market jitters spark oil price hike amid Middle East hostilities
https://www.freightnews.co.za/article/market-jitters-spark-oil-price-hike-amid-middle-east-hostilities
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / MSC / Transnet / WeFreight / Beacon / Reuters / MSC / AfricaPorts / Container Statistics / Flexport / SACO