South Africa’s ports face severe congestion, with 96 ships waiting outside. This backlog costs the economy millions daily. Shipping lines, like Maersk, are skipping calls due to long wait times. The issue stems from weather disruptions and Transnet’s equipment problems.
Port Crisis
SAAFF addressed: “The crisis is arguably more significant than the October strike last year, as the massive economic cost of 96 vessels waiting outside our ports cannot be understated, and the current situation must be put into perspective.
“Despite being in a crisis, port operations in the past week were again bedeviled by poor weather conditions as well as equipment breakdowns and shortages.”
Equipment Shortage
Durban’s terminals face nine-day delays, while Cape Town’s new equipment arrival is delayed to December. Although congestion has slightly eased, it’s due to reduced cargo and bypassing Cape Town. SAAFF urges collaboration, but solving this will take time. Airfreight might help, but it’s not feasible for most SME cargo owners.
He said: “The congestion can be cleared, but probably only by the end Jan/early Feb. The main contributor is the lack of usable equipment, as Transnet has not kept up with maintenance – especially half-life maintenance of key equipment. The problem is multifaceted and long-term in nature – meaning that the current operations are really working with their hands tied.”
Infrastructure Revamp
Transnet’s challenges prompted urgent collaboration to secure equipment. A long-term plan aims to fix this by year-end, awarding contracts for major equipment across 48 brands, with deliveries expected in six to 24 months.
Private partnerships for infrastructure upgrades are on Transnet’s agenda, while SAAFF urges unified efforts from all stakeholders in South Africa. Better coordination among transporters could ease port congestion, fostering smoother operations throughout the day.
Economic Impacts
SAAFF estimates daily indirect costs at R26m, impeding R7bn worth of goods movement. The current situation incurs a sunken cost of R48.5m daily, escalating to R98m with port congestion surcharges for containers.
They emphasize the need for better efficiency to prevent further economic setbacks in trade, transport, and logistics industries, hindering South Africa’s growth.
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Source: The Load Star
