Heavy winds and cyclones off the Cape of Good Hope are diverting container ships and severly disrupting trade. On 09 July, a CMA CGM containership lost 44 containers due to these challenging conditions whilst on her Asia to Europe routing. Simultaneously, Transnet South Africa announced a halt in port operations in certain areas, citing strong winds and high sea swells. These disruptions are expected to significantly delay delivery timelines within the South African supply chain.
Further adverse weather conditions along the East Coast have forced Transnet to extend storage periods within the Durban port by over a week.
Transnet has improved the speed of moving vessels into the Durban port for unloading, thanks to their new tug-boats. However, the bad weather conditions and other challenges with equipment are still causing longer storage times at the port after unloading. Additionally, there are significant delays in the availability of booking slots for container upliftments that are affecting delivery times for our valued customers.
It is important to note that shipping lines calculate free days for returning empty containers from the vessel’s discharge date. As a result, we are crucially monitoring demurrage for our customers due to the extended-release days by Transnet.
Importers are strongly encouraged to prioritise shipping now to counteract sea freight delays and meet market demands throughout November and December.
Unpredictable vessel bookings and space availability
Compounding the issue, vessel bookings and space availability in the Asia to South Africa trade route remain unpredictable, causing further delays. Importers should consider the following factors:
- Irregular sailing timetables
- Challenges in sea freight capacity and equipment distribution
- Additional shipping charges (PSS/GRI's)
- Strong airfreight demand
Sea freight capacity
Global port congestion and Red Sea security concerns
We have not observed any discernible improvements in the Red Sea situation and global port congestion continues to escalate.
Several carriers have deployed smaller vessels in the Asia to South Africa trade lane, which should provide some relief moving forward. This deployment has led to a stabilisation of freight rates, with a slight average reduction of USD 200 per TEU.
Our expert opinion is that this relief is expected to be temporary, especially with the Chinese festive holidays approaching in mid-September and early October.
Increased demand ahead of these periods will likely heighten the need for earlier sailings.
Source: Investec
Air freight capacity
Global air cargo capacity has seen a 14% increase, on average, driven by delays in sea freight transportation. This trend is expected to continue in the coming weeks, along with a rise in air freight rates as importers seek to mitigate sea freight transit delays.
Exploring combined freight solutions
We are currently exploring options for combining sea freight and air freight for shipments along the Asia to South Africa Trade Route. We invite you to contact us to discuss potential solutions for shipping high-volume goods with urgent delivery requirements.
We urge importers to adopt a proactive stance to navigate these challenging times. Please do reach out to our team, who are readily available to offer solutions, guidance, and support to your business.
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