It's congested! 96 ships waiting outside the harbor!

Maersk is among the shipping companies that have jumped ship to South African ports. Recently, the company warned of long wait times at the Port of Durban, noting that "CMA CGM APL Houston's eastbound voyage is skipping to Cape Town due to berth congestion at Cape Town Port". Since December 3, many shipping companies have imposed congestion surcharges. The congestion appears to have been caused by bad weather affecting operations and port operator Transnet experiencing equipment issues.

SAAFF said: "This crisis is arguably more serious than the strike last October because the huge economic cost of the 96 ships waiting outside our ports cannot be underestimated and the current situation must be put into perspective." Despite the crisis, port operations over the past week have again been plagued by adverse weather conditions as well as equipment failures and shortages."

The Durban dock was the worst affected, with ships delayed for about nine days. Cape Town was affected by bad weather and the arrival of new equipment was delayed until the second week of December. Congestion has eased, however. But SAAFF said: "Unfortunately, this is not due to any improvement in performance or productivity, but rather due to the decline in cargo volumes and flying to Cape Town, which is clearly visible in the Ngqura statistics." SAAFF urged stakeholders to work together to help ease congestion, but noted that finding a solution would take some time. Jacob van Rensburg, director of research and development at SAAFF, said that while there is some hope, it is only a little in the short term. Air freight could help ease some of the congestion.

"An important issue is Transnet's position," SAAFF noted. Fortunately, we are working immediately with industry partners to source available equipment. In addition, a long-term OEM strategy is expected to be completed by the end of the year, aiming to ensure 48 brands meet equipment challenges by awarding major equipment contracts. "The container handling equipment is expected to be delivered within six to 24 months. "Transnet is looking to build partnerships with the private sector to help modernize infrastructure and SAAFF believes all stakeholders in South Africa should work together." SAAFF calculated that the indirect cost to the economy was R26 million per day, while about R7 billion of goods were blocked.

"In short, the current situation is that the net sunk cost is at least R48.5 million for just one day of mooring. In addition, with the implementation of the container port congestion surcharge, this figure jumped to R98 million. We've already overpaid our direct costs by almost 10 per cent." SAAFF concluded: "We must improve operational efficiency and increase throughput, otherwise the trade, transport and logistics sector will continue to stifle much-needed economic growth in South Africa.