Shipping conglomerate Maersk has not removed Cape Town as a port of call, but has started a weekly service out of the port through transhipment in a bid to avert the bottlenecks caused by weeks of congestion in South African ports.
There are currently 96 vessels waiting at anchorage outside South African commercial ports, costing the economy R98 million a day in direct, sunken costs, at least R26m a day in indirect costs, and impeding at least R7 billion worth of goods from moving every day
Maersk’ media relations manager for Indian Subcontinent, Middle East and Africa, Adhish Alawani, said they had not removed Cape Town from their services.
Alawani said South Africa was an extremely important market and a strategic location for their operations, and they were committed to serving customers here in the best way possible and supporting the economy by enabling global trade.
However, Alawani said in recent times they had experienced longer waiting times to berth at the ports, leading to increased operating costs.
“For example, if a vessel waits for seven days to berth, we have to add one more vessel to the rotation so that the weekly service is maintained. Then there are additional fuel expenses, which are not only a cost point but are also not sustainable.
“To ensure that we can find the best solutions for our customers and the trade taking place in and out of South Africa, we are collaborating with the authorities and the rest of the ecosystem. We have started a weekly service from Cape Town that allows cargo movement in and out of the port to global trade routes through transhipment,” he said.
Transhipment refers to a process in which a cargo or container is moved from one mode of transport to another while in transit to its final destination when there is no direct connection between two ports.
Transnet Port Terminals (TPT) this month launched a two-berth operation, which seeks to have improved volume throughput and increased capacity for customers at the Cape Town Multi-Purpose Terminal (CTMPT).
The introduction of the second berth is aimed at assisting to reduce congestion at the Cape Town Container Terminal (CTCT) through providing a complementary system.
Southern African citrus growers say that their 165.1 million (15kg) cartons packed for delivery to global markets in 2023 was 500 000 cartons lower than the forecast at the start of the season, due to the ongoing challenges in getting their fruit to key markets.
The Citrus Growers Association of South Africa (CGA) CEO Justin Chadwick said the general surge in farming input costs, the devastating floods in the Western Cape in June, and the worsening logistics crisis, had negatively impacted the amount of citrus they could export and their profits.
“Congestion at ports and a dysfunctional freight rail network has cost farmers dearly and is, in effect, halting growth opportunities for the citrus industry,” Chadwick said.
At the Port of Durban, there is a backlog of more than 60 vessels with an estimated 71 000 containers stuck at sea, and it will take seven to 15 weeks to clear the backlog.
TPT has said that port operations were bedevilled by poor weather conditions, as well as equipment breakdowns and shortages.
Citadel Global director and treasury partner Bianca Botes said the crisis at the Port of Durban port significantly heightened the challenges for importing and exporting businesses.
Botes said the situation at the ports might also raise alarms about the potential effects on import and export financing, currency markets, and overall economic stability.
“Events such as these put added pressure on importers and exporters, and cause delays in receiving projected income for exporters. This results in failure to meet contractual timelines, loss of competitiveness in the global sphere, additional costs and delays in receiving goods that are already paid for by importers – all adding to financial strain,” Botes said.
“Given the evolving situation, businesses should enhance their contingency plans. Diversifying suppliers, transport routes, and logistics partners becomes even more crucial. Companies should pro-actively explore alternative ports and carriers, maintain strategic inventory levels, and establish robust communication channels with stakeholders.”
BUSINESS REPORT