GLOBAL LOGISTICS UPDATE – 9 SEPTEMBER 2024

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Welcome to the month of Spring and yet another exciting Global Logistics Update. The logistics industry continues to face challenges and transformations on a global scale and current trends indicate how the shipping industry is rapidly evolving to address current challenges and future demands.

South African Ports

South African ports have been facing significant challenges and developments recently. The Port of Durban being South Africa’s largest and busiest port, is currently dealing with severe congestion, delays and backlogs that is impacting global trade. The turnaround time for vessels has worsened, with some ships waiting up to 18 days and currently over 20 vessels anchored outside Durban waiting to berth. The congestion is particularly problematic at Pier 2, where efforts are being made to increase capacity from 2500 to 4000 containers per day. Efforts are underway to address the crisis, including investments in new equipment, but it will take time to resolve these issues fully.

Port of Cape Town is currently undergoing efforts to improve operational efficiency while facing challenges due to wind disruptions and equipment failure. The port is also facing ongoing challenges due to decisions by some shipping lines since early 2024 to bypass Cape Town for more reliable alternatives, opting mainly for Port Louis, for cargo offloading to improve reliability and transit time.

There is currently a 7-day berthing delay at Coega Port with no published reason for the delay. On the positive, developments continue concerning expansions to accommodate increased automotive and liquid bulk cargo handling. 

We highlight in the images below, vessels currently at anchorage pending berth at our major ports, showing a vast increase outside Durban:

Port congestion and delays have been reported with Durban at 11-20 daysCape Town 7 days and Coega 7 days on average.

Transnet Anchorage Report below – published 9 September.

Transnet taken to task over lack of good data.

The lack of access to good data is part of a bad problem in South Africa’s logistics industry, and Transnet is right at the centre of not sharing the best possible information it could with the freight industry, last week’s Sapics Spring Summit in Johannesburg was told.
Continue Reading here: https://www.freightnews.co.za/article/transnet-taken-task-over-lack-good-data#

Loaning Transnet more money won’t solve SA’s infrastructure crisis

The Institute of Race Relations (IRR) has expressed deep concern over the Brics New Development Bank’s approval of a R5-billion loan to fix Transnet’s rail sector. The organisation believes a far better idea would be to allow the private sector to operate rail and port facilities through public-private partnerships.
Continue Reading here: https://www.freightnews.co.za/article/loaning-transnet-more-money-wont-solve-sas-infrastructure-crisis

Global Port Statistics

Port Updates

With peak season traditionally picking up in September – We expect demand on space across all modes of transport to increase and therefore encourage all our customers to start prebooking shipments in advance of cargo ready date.

Congestion and Delays

Key shipping routes through the Suez Canal and Panama Canal are still facing congestion. The Suez Canal has been particularly impacted by security concerns stemming from ongoing conflicts in the Middle East, forcing many vessels to reroute around the Cape of Good Hope, which adds about 14 days to shipping times. This rerouting affects 6-9% of global shipping capacity. The Panama Canal is operating below capacity due to drought conditions, restricting transit slots and causing delays.

Ports in Europe, such as those in Italy, Germany, and France, are also grappling with labour disruptions, causing further delays

Shipments between key global trade hubs, such as Asia and Europe, are seeing fluctuating demand and pricing, with some improvement in shipping reliability as new vessels enter the market. However, booking slots at many ports remain highly competitive, with wait times often extending​

North America

Ports in Canada, particularly in Vancouver and Prince Rupert, are facing increased dwell times due to rail embargoes and labour tensions. In Latin America, ports are seeing growing volumes, with increased cargo flows from the U.S. and Asia.

Asia

Southeast Asia is experiencing a surge in cargo demand, especially from Thailand and Vietnam. Ecommerce and general cargo volumes have risen.

China opens markets to Africa

“This has made China the first major developing country and the first major economy to take such a step. It will help to turn China’s big market into Africa’s big opportunity,” Xi said.

China will expand market access for African agricultural products, deepen cooperation with Africa in e-commerce and other areas, and launch a “China-Africa quality enhancement programme”.
https://www.freightnews.co.za/article/china-opens-markets-africa?

Standalone MSC network to offer Suez and Cape routes

MSC revealed its independent, post-alliance East-West network from February 2025, including plans to offer Suez and Cape of Good Hope sailings.

‘MSC said it will offer a unique East-West solution, offering services sailing via both the Suez Canal and the Cape of Good Hope. Suez is often the most efficient route for East-West trades, cutting thousands of nautical miles and 10-15 days from some routes. Many ships have chosen to take the longer Cape route to avoid attacks on merchant ships by Houthis in the southern Red Sea.’
https://www.seatrade-maritime.com/containers/standalone-msc-network-to-offer-suez-and-cape-routes

Global Ports – Interesting Facts:

  • Busiest Port in the World: The Port of Shanghai is the busiest port globally, handling over 47 million TEUs (Twenty-foot Equivalent Units) annually. It has maintained its top position since 2010 due to its strategic location and advanced infrastructure
  • Longest Port: The Port of Rotterdam in the Netherlands is the largest port in Europe and stretches over 42 kilometers (26 miles). It serves as a gateway to the European continent, with direct access to the North Sea and an extensive canal network reaching into Europe
  • Deepest Port: The Port of Qingdao in China is one of the deepest natural ports in the world, with a depth of around 24 meters (79 feet). This allows it to accommodate the largest ships, including ultra-large container vessels
  • Environmental Initiatives: The Port of Los Angeles and Long Beach are leaders in green initiatives, with programs aimed at reducing carbon emissions and implementing cleaner technologies for handling cargo​
  • Technologically Advanced Ports: Singapore is home to one of the most technologically advanced ports in the world. The port has heavily invested in automation, with automated cranes, trucks, and data analytics playing a central role in its operations
  • Oldest Active Port: The Port of Byblos in Lebanon is one of the oldest continuously active seaports in the world, dating back more than 5,000 years. It was a crucial hub for ancient Phoenician trade​

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.

Insurance claims on the rise with box ships forced to brave Cape weather
https://theloadstar.com/insurance-claims-on-the-rise-with-box-ships-forced-to-brave-cape-weather/

SA exports to China expected to rise
https://www.freightnews.co.za/article/sa-exports-china-expected-rise

Port of East London receives new tugboats
https://www.freightnews.co.za/article/port-east-london-receives-new-tugboats

Efficient technology vital to lower logistics costs
https://www.freightnews.co.za/article/efficient-technology-vital-lower-logistics-costs

India-US container GRIs pushed back as demand falters
https://theloadstar.com/india-us-container-gris-pushed-back-as-demand-falters/

Sources & References 
Seatrade Maritime / Loadstar / Freight News / GoComet / Maersk / MSC / Transnet / WeFreight / Beacon / Joc / MSC / Maersk / Container Statistics / Flexport / SACO

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