News / South African ports handling more boxes, but challenges remain

ID 392940077 © Michael Turner

Despite handling the highest throughput since 2017/18, South Africa’s ports last week continued beset by operational challenges that “prevented optimal performance” – and the forecast is even less rosy. 

The South African Association of Freight Forwarders (SAAFF) reports in today’s cargo movement update that South African container terminals handled an average of 14,470 teu every day between 14 and 20 July.  

This figure was not only significantly up from 12,424 teu the previous week, but was the highest throughput seen since the 2017/18 peak, “reflecting operational improvements, better equipment utilisation, and stronger inter-stakeholder collaboration,” said SAAFF.

Jacob van Rensburg, head of research and development at SAAFF, told The Loadstar that the primary drivers were “seasonal factors, operational improvements and tactical carrier decisions.”

“The citrus export season is currently in full swing, which is contributing materially to outbound volumes. Vegetable exports and other agri-goods also did really well!” he said.

“We’ve seen better equipment utilisation, more consistent vessel calls, and improved stakeholder coordination, all of which have enhanced port fluidity. Some lines are also reconfiguring vessel calls due to regional disruptions, diverting more volume through SA ports,” added Mr van Rensburg.

Another explanation for the boost in volumes is simply a reflection of global trade growth. The capacity of the world’s containership fleet has risen 8.1% year on year, by 2.43m teu , largely due to new vessels and minimal scrapping. 

According to SAAFF, Africa has absorbed 23% of this capacity. 

Indeed, yesterday Danish carrier Maersk announced a peak season surcharge for goods moving from Asia Pacific to South Africa and Mauritius. 

Fees of $700 per teu and $1,300 per f40ft will apply from 1 August on shipments from China, Japan, South Korea, Hong Kong, Cambodia, Laos, Myanmar, Thailand, Indonesia, Malaysia, Philippines, Singapore, Taiwan and Vietnam. 

But despite achieving a record container throughput last week, port operations were still hit by the challenges that have consistently plagued South Africa’s logistics operations.  

“Inclement weather constrained operations at the port of Cape Town, while the main operational challenges in Durban proved to be continuous equipment breakdowns and adverse weather. 

“Vacant berths, agent delays, and poor weather mainly impacted operations at our Eastern Cape ports,” added the forwarding association. 

SAAFF is predicting a 13% a decrease in average daily container handling this week, forecast to be some 12,600 teu. 

“As to whether [higher handling volumes in SA] is a lasting trend, it’s likely partly cyclical, but there are clear signs of structural gains too,” said Mr van Rensburg.

“The sustained collaboration across the public and private sectors — coupled with intensified focus on port reform — suggests we are starting to see the early dividends of long-called-for operational reforms. That said, without accelerated infrastructure investment and policy stability, there’s a risk we hit capacity ceilings. So, cautiously optimistic — but vigilance is key.”

The latest reports from Maersk indicate that on its American Express service, the MSC Nahara will skip the port of Durban after Coega and, as a result, dry exports will be loaded onto the Maersk Vallvik and connected to the Maersk Cap Carmel in Cape Town, while reefer exports will also be loaded on the Maersk Vallvik and connected to the MSC Carmen. 

Maersk also said the APL Holland, on its Masaawa service, will bypass the port of Cape Town, proceeding directly to Coega. All export bookings will be transferred to the Maersk Chenna, while import containers scheduled discharge in Cape Town would be discharged in Coega and rerouted accordingly for onward transport.  

Meanwhile, a Transnet Freight Rail report warned that the annual shutdown on the line between Pretoria and Durban that commenced on Monday would restart tomorrow.