Welcome to the latest Global Logistics Update. As of July 2024, the global port situation continues to face challenges and fluctuations due to various factors including congestion, demand surges, and geopolitical issues.
South African Ports
South African ports still experience significant congestion issues, leading to severe delays and economic impacts. The port of Durban is particularly affected with delays of about 14-20 days and more recent delays in vessels transhipping between Coega and Cape town with an average of 3-8 days for these ports. We highlight in the images below, vessels currently at anchorage pending berth at our major ports highlighting an increase in vessels waiting outside Coega.
We specifically make mention of the vessel Santa Teresa which was expected to berth in Durban on the 5th July and due to erratic schedule amendments, the vessel berthed earlier 27th June with a split discharge. Shipping lines pass penalties where clearing agents have not customs cleared early enough and it has become critical that clearance is done well in advance of the normal ship line 72hr before ETA documentation deadline. Carrier schedules are still erratic, and we continue to see changes last minute especially with vessel split discharges and delayed ETA’s.
LOCAL PORT DELAYS RECORDED
Port bottlenecks are still dragging the PMI down – 2 July
Imports still face delays in reaching SA amid continuing battle against congestion
The PMI report states: “Supplier deliveries are worsening, with the index increasing relative to May (this is indicative of slower delivery times). Port issues are likely to have remained an issue. For example, at the Durban Container Terminal, only seven of the 16 ship-to-shore cranes were operating, and about 55 straddle carriers were available compared with the planned 67.” A World Bank report last month ranked Durban and Cape Town among the world’s poorest-performing ports.
Global Port Congestion and Statistics
Global port congestion remains a significant challenge, with several contributing factors impacting the efficiency of the shipping industry.
Rerouting Due to Red Sea Attacks: Ongoing attacks in the Red Sea have led many ships to avoid this route, opting for the longer journey around Africa. This change has caused considerable delays and increased congestion, especially at transshipment hubs like Singapore. The impact is felt globally, with major ports in Asia and Europe experiencing heightened wait times and operational strain.
Increased Shipping Rates and Demand: The annual peak shipping season has begun earlier than expected, driven by restocking activities in anticipation of higher demand. This has led to a surge in shipping rates and heightened congestion at key ports. Container rates have tripled since early 2024, significantly impacting costs for businesses and consumers.
Congestion in Asian Ports: Major ports in Asia, including Shanghai, Qingdao, and Port Klang, are experiencing severe congestion. Ships are facing long wait times to berth, with delays exacerbated by weather conditions and the increased volume of cargo being handled due to rerouting. This situation is further compounded by the consolidation of cargo onto fewer services, leading to larger parcel sizes and increased dwell times.
Efforts to Mitigate Congestion: Various measures are being implemented to address congestion. For instance, Singapore’s port authority has reopened inactive terminals to handle the backlog, and shipping companies are adjusting vessel arrival schedules. However, despite these efforts, congestion is expected to remain a challenge, particularly in Asia and the Mediterranean.
Overall, the global shipping industry continues to face significant hurdles due to rerouting, increased demand, and logistical challenges.
(Sourced: Wefreight)
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.
Merger of container firms could cause ‘significant harm’
https://www.freightnews.co.za/article/merger-container-firms-could-cause-significant-harm#:~:text=A%20proposed%20merger%20between%20two,logistics%20and%20associated%20sectors%2C”%20says
Rising U.S. imports drive increased activity in the U.S. container trading market
https://globalmaritimehub.com/rising-u-s-imports-drive-increased-activity-in-the-u-s-container-trading-market.html
Singapore port congestion shows global ripple impact of Red Sea attacks
https://cyprusshippingnews.com/2024/06/28/singapore-port-congestion-shows-global-ripple-impact-of-red-sea-attacks/
Fuel price drop a relief for consumers
https://www.freightnews.co.za/article/fuel-price-drop-relief-consumers?utm_source=newsletter&utm_medium=email&utm_campaign=daily-news-2024-07-03&utm_content=fuel-price-drop-a-relief-for-consumers
Sources & References
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / MSC / Transnet / WeFreight / Beacon / Joc / MSC / Maersk / Container Statistics / DHL Market Update / CS News