Berthing Delays

Dear Customers

We are aware of the critically negative impact of current port performance issues and excessive delayed berthing. We are sure our endless updates are offering little comfort but are however essential. We wish to assure our customers that we are being as proactive as possible under the circumstances and whilst we cannot control port performance nor shipping line decisions, we will always endeavour to ensure you get the best possible action and decision making. It is at times like these that passion and attention to detail are needed by your logistics partner. We provide below the most recent updated scenario and worth reading for understanding. Firstly, however I wish to advise what we as SCT and you as importers and exporters can do under the circumstance.

SCT:

• On all routings under our control (E and F Terms) we are assessing on each occasion the best line, transit time and routing as well as considering alternative port options. You will note below that Durban is by far the worst at present, but the other ports are not immune to the problems and on many routings the first port of call is Durban so selecting Coega or Cape Town does not provide a quicker access to cargo. Two lines have also in the last month ceased Cape town calls directly and are routing via Coega with excessive costal transfer delays. Coega’s capacity is also limited. Where options of an alternative port to your usual routing are worth considering, our forwarding team will be discussing this with you prior to booking. Obviously, consideration must be given to the fact that routing decisions are made 4-5 weeks prior to arrival, so delays such as weather impacts cannot be forecast at the time of booking and shipping line decisions for rerouting are always taken after we are committed to a service.   
• Where vessels are re-routed and bypass the intended port of call, SCT are assessing with carriers and customs whether earlier access and a change of POD are possible. This is not often granted by line nor customs and certainly comes at a cost when granted, but we will fight for and provide these options where they can be considered. 
• We are delaying customs clearance as late as possible whilst still avoiding the overstay charges that result from late submission (most lines require 48 or 72 hours (working week only) prior to vessels berthing). Before every single entry is processed, we are assessing the berthing plan to try and avoid early clearances. 
• On the SA Landside operations, we are well aware that every consignment that berths is already late and so we are working closely with our truckers to ensure vehicles are allocated to SCT, are on standby and that bookings are secured as soon as possible. 
• We are aware than many consignments planned for arrival before year end shutdowns may now arrive whilst you are closed. We are doing all we can to plan together with yourselves to find the best possible solutions on a case-by-case basis, including temporary opening of your faculties to accommodate receipt, best possible storage solutions and unpack in depots where necessary. You would have received a mail from Leana asking about your shut down plans and if anyone has not yet reverted or not received this mail please advise soonest.

IMPORTERS AND EXPORTERS

• From your side we must advise that in your planning where possible you need to add 2-3 weeks additional transit time. We are fully aware that this has an impact on cash flows and sometimes is not possible from a supplier manufacturing perspective, but we do not see the delays being fixed quickly and so the reality is that additional lead times should be considered where possible. 
• You may need to consider temporary opening of your facilities over December shut down periods to prevent storage costs for consignments arriving later than planned.

PORT UPDATE – LATEST NEWS

The ugly picture of vessels awaiting berthing provided below for all three main ports.

DURBAN 

COEGA 

CAPE TOWN

There are many publications that offer updates, but we paste two recent below that provide a clear understanding of the problem and the action being taken. 

Maersk customer advisory of 2/11/2023 extract below:

“Lack of equipment has negatively impacted terminal productivity. Other factors, such as poor weather, had also exacerbated the delays. In addition, delays in one terminal were creating further congestion in the complimentary terminal network within SA”

Each of the Transnet executives presented their terminal plans for their immediate recovery measures – including restoration of berth operations, accelerated dredging plans, the recovery of terminal equipment capacity and accelerated operator training. These measures are essential, and the shipping lines will continue to work with Transnet in partnership to drive the recovery process forward.  

Full recovery will take time and we appreciate the immense negative impact the delays are having on our customers.  To ensure our customers are kept informed we will provide a comprehensive update on the terminals, our services, and the mitigating actions being taken to address the delays.

Ports and Terminals Situation

Freight weekly Publication from last week 

Durban Port delays 

The Port of Durban is facing massive backlogs on the land and waterside with more than a dozen vessels queuing outside the port at any given time, and trucks battling to get appointments as equipment failures and inclement weather hampers operations.

However, Transnet’s Durban Terminals managing executive Earle Peters has assured port users that the crisis is receiving management’s attention at the highest level through President Cyril Ramaphosa.

Freight industry stakeholders, who asked to remain anonymous, said berthing delays have run into weeks, while trucks have been struggling to get appointments to load and offload cargo.

They said the port’s management had called an urgent meeting with major shipping lines on Thursday last week and another on Monday night to deal with the crisis that has been ongoing for the past six weeks.

“Berthing delays are running into two weeks,” one port user said.

“Last Thursday there were 14 ships sitting outside. It has not got this bad before. The equipment is breaking down in the stacks and we don’t have equipment to service the trucks so they can’t get appointments.”

He said on Monday there were about 12 container vessels waiting outside for a berth at Durban Container Terminal’s Pier 2, while another three were waiting to berth at Pier 1.

“The port is in a terrible mess.

“There isn’t enough equipment even though they are cannibalising parts from one machine to another. This is resulting in truck congestion, delays inside the terminal up to 10 hours, no booking slots are released as well as vessel berthing delays.”

The source said there’s a real fear that the terminal will soon come to a grinding halt.

Another port user said the backlog had been created due to Transnet not servicing its equipment, which was keeping trucks from entering the port, the “same as Eskom making life difficult for everyone.”

Peters told Freight News that the berthing delays were due to a combination of inclement weather and a shortage of equipment.

“Wind, heavy rains, high swells and a shortage of straddle carriers at the Durban Container Terminal Pier 2 and rubber-tyred-gantry cranes at Pier 1 have resulted in vessels waiting at anchor over the last six weeks,” Peters said.

“The terminals lost 106 hours in September and are currently on 104 hours for October. This is time lost because the terminals could not operate.”

Peters said the same inclement conditions also affected landside traffic.

“Truck congestion meant bookings were not available until the trucks waiting in the terminal were serviced. The terminals have introduced haulers and reach stackers to service road trucks. Landside operations are now fluid,” he said

Peters said the port is working closely with the private sector and container shipping lines on relief initiatives “through the consultative structure” Ramaphosa’s National Logistics Crisis Centre.

“Maintenance resources have been increased as maintenance is now performed over a 24-hour period. Business rules have been developed to service urgent containers and weekly vessel calls.

“The company is also at an advanced stage of concluding long-term OEM (Original Equipment Manufacturer) contracts to modernise its fleet and supply spares.

“The main focus is to improve container handling equipment reliability.”

He said the OEM contracts would also “significantly improve lead times for the supply of spares across its fleet”.

Peters said the port was working on additional initiatives to reduce congestion including the tier-for-tier release to minimise non-productive moves of containers when import containers are collected at the container terminal.

“Containers at DCT Pier 2 are stacked three high and at Pier 1 up to six high.

“Tier-for-tier release will ensure the top container will be dispatched first compared to the container stacked on the ground and therefore the current fleet of equipment will be used in a more efficient manner,” he said.

Sourced:

https://www.freightnews.co.za/article/port-durban-state-mismanaged-chaos#:~:text=The%20Port%20of%20Durban%20is,and%20inclement%20weather%20hampers%20operations.