- The Maritime Chamber of Commerce (MBC) has urged government intervention in addressing challenges within the global shipping industry.
- South Africa, situated along crucial international trade routes with a vast coastline, plays a pivotal role in the global maritime industry.
- The South African port system may face pressure due to increased demands for better services at sea, with potential risks to the marine environment associated with ships requiring fuel.
- The bunker ship service at sea has been suspended in South Africa since September. Sonti sees an opportunity for the country to come to the world’s rescue by providing marine bunker fuel services outside Algoa Bay.
Global Shipping Crisis
The Maritime Chamber of Commerce (MBC) has called upon the government to take action in addressing issues within the global shipping sector.
“Operations at the Red Sea strait, which is of crucial importance for world trade, are under threat due to Yemeni rebel attacks in the area,” says Unathi Sonti, executive chairman of the MBC. “This is not only a danger for transit shipping, but for the entire world trade.”
Economic Ripples And South Africa’s Dilemma
Sonti says oil prices will be immediately affected by intolerable increases, which will affect food prices and thus add greater economic distress to an already struggling global economy.
“South Africa finds itself in a difficult situation because the bunker ship service at sea has already been suspended since September this year. This followed after the South African Revenue Service stopped ships supplying bunkers outside Algoabay. There is now an opportunity to come to the world’s rescue.”
Strategic Maritime Importance
Sonti says South Africa is located along important international trade routes, and the maritime industry therefore plays an essential role in the country’s economy.
“With a coastline of more than 3,000 kilometers, South Africa has access to the Atlantic and Indian Oceans, which offer rich opportunities for sea activities. The Cape Route, also known as the European Asia Sea Route, the sea route to India, or simply the Cape Route, is an important waterway that stretches from the European coastline of the North Atlantic Ocean to the Asian coastline of the Indian Ocean. The route will be a long transit route for some shipping companies, which means there will indeed be a high demand for marine bunker fuel in South Africa.”
Addressing Maritime Challenges
However, the South African port system can be put under pressure by these services, which can be better delivered at sea. In addition, ships that require fuel carry certain risks, including hazards to the marine environment. The MBC believes that the solution lies in South Africa being able to provide the marine fuel bunker service outside Algoa Bay. “The commercial ports are currently not in a position to handle more requests from ships diverted from the Red Sea which is under the Yemeni blockade.”
The MBC calls on the South African government to immediately lift the moratorium in Algoa Bay and make sure that the SARS delay of bunker ships is suspended. This will provide the maritime services needed for ships taking the longer Cape Route while avoiding the Red Sea.
Humanitarian Imperative And Economic Benefits
“South Africa must heed the plea, as it forms part of the humanitarian approach by the country. It is also worth noting that there will be a positive spin-off for the struggling South African economy.”
Sonti says the MBC understands that SARS is preparing a process of new regulation for the bunker industry and such a process is welcomed, but in the meantime, operations must resume. Five of the six largest shipping companies such as Maersk, MSC, and Hapag Lloyd have already started to divert their ships as part of the 55 ships being sent to South Africa.
“In the meantime, the government regulators must ensure that small, medium, and micro enterprises form an integral part of these operations and that exploitation and exclusion are not allowed. There must also be interim approval for all supplementary bunkering services.”
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Source: rnews
