1st March 2022
This was not a normal week. Disruption in the logistics industry!
I did not think I would see it in my lifetime, nor my children’s lifetime, but the invasion of Ukraine has the logistics industry and the rest of the world at large on high alert.
WhatsApp messages and photos of trucks and cargo, once again alight along the N3, had us nervously looking back at 2021 and saying “Not again”, as an industry that is still reeling after last year’s violent protests in July.
Ports are congested, Political conflict has seen country closures and service suspensions as we have seen in Mali, Russia, Ukraine and Belarus. Not to mention extreme weather conditions in Europe.
Routing changes, additional port calls, unscheduled transshipments and vessel delays are still being experienced and are at the discretion of the carriers.
Globally, transshipment hubs remain congested and we are experiencing container transshipment delays from Singapore, Tanjung Pelepas, Sines, Las Palmas and Algeciras Rates are up,
Capacity constraints are ongoing, analysts are predicting fuel prices could increase up to as much as R26 per litre very soon, the list of disruptions just carries on.
On the other hand, if anyone needs a tiny sliver of silver lining on the storm clouds that 2022 is bringing us. For the first time since May 2020, South Africa has recorded zero Covid-19-related deaths in a 24-hour cycle!
But to recap the week gone by…
Local Ports
SOUTH AFRICA
TRUCK DRIVERS STRIKE
“The All Truck Drivers Forum and Allied South Africa, which has embarked on a national stay-away, has distanced itself from the truck blockades that have reportedly taken place along routes, including the N3 and N12, since Sunday morning.
ATDFASA general secretary, Sifiso Nyathi, told Freight News that truck drivers had embarked on a stay-away but that the union had not issued any instruction to drivers to disrupt traffic.”
Shipping line capacity constraints have already created a high demand for local transport, especially long distance between the 3 major ports. The strikes will undoubtedly add to the existing pressures on both turnaround times and especially our pockets if you take into account tomorrow’s fuel hike which is the highest it has ever been in South African History.
MARINE INSURANCE EXCLUSIONS: RUSSIA AND UKRAINE
Please be aware that the majority of Marine Insurance companies have amended the policies in terms of cover for shipments to Russia and Ukraine and All areas within 100km of the boarder of Ukraine.
Insurance of any shipments to the affected area will be subject to agreement by underwriters prior to inception of risk with no guarantee of cover.
Clients must also please take note of any sanctions exclusion in the voyage clause of their policy in light of the current sanctions being implemented against Russia.
It is imperative that clients speak to their insurance broker/provider before considering any shipments to the above mention areas. Any shipments currently on the water might also be affected and not only in terms of cover but also delivery to final destination/port.
International
Changes are ongoing due to the volatility of the current situation.
CANADA:
Please have a look at the attached Spring Thaw weight restrictions.
SUSPENDED SERVICES:
As on Monday 28/02/2022, the following shipping lines have suspended their services to Russia:
OCEAN NETWORK EXPRESS
“Booking acceptance to and from St Petersburg, Russia is suspended with immediate effect until further notice whilst we evaluate the operational feasibility,”
HAPAG LLOYD
“Germany’s Hapag Lloyd said on Feb 24 it had issued a temporary suspension on bookings for Russia and halted sailings for Ukraine. A Hapag spokesperson said on Monday it was “due to the developments we have seen last week and to ensure we comply with any sanctions imposed”.
MAERSK LINE
“Meanwhile, Maersk said on Monday it was closely monitoring the fast-evolving sanctions and restrictions imposed against Russia, and making preparations to comply with them.
MEDITERANEAN SHIPPING COMPANY
Please refer to the attached advisory pertaining to Russia.
First lemon exports head for China
“South Africa’s first major consignment of lemons headed to China under a new trade protocol was loaded for export at the Maydon Wharf Fruit Terminal at Durban port on Thursday.
Minister of Agriculture Land Reform and Rural Development, Thoko Didiza, and MEC for Rural Development and Agrarian Reform, Nonkqubela Pieters, oversaw the inspection of the first few pallets of 100 000 lemons, produced in Limpopo, before they were loaded onto the vessel. This is under the new Chinese lemon protocol, which has been under negotiation since 2015, was an important agreement because it opened up major export opportunities for lemons.”
INDUSTRY KEEPS A CLOSE WATCH ON UKRAINE-RUSSIA NEGOTIATIONS
“A number of South African exporters have put their consignments for Russia – mostly grapes, pears and stonefruit, as well as lemons – on hold for the moment. “We won’t continue loading until there is more clarity on the situation,” says one exporter. “But it’s not looking good, we could basically lose an entire market and it could have an effect on other markets.” “Everything depends on today,” he adds. “The level of uncertainty is terrible. No-one knows what’s going on, especially with the deterrent notice issued by Russia.” South African fruit diverted away from St Petersburg could lead to an oversupply elsewhere.” Sources:SOUTH AFRICAN PORTS & CFS
Transnet has published advisories cautioning against expected transport disruptions by ATDF (All Truck Drivers Forum) across national roads, from 25th to 27th January.
Notification received from Transnet of technical difficulties to the Navis system on 22nd February. System was down between 01:35 and 04:00 on 22nd February and again from 07:34 to 10:15 on the same day.
DURBAN PORT
Durban terminals continue to see high traffic volumes and delays remain with the truck booking system.
Durban CFS is experiencing high cargo and container volumes; however operations are proceeding as normal.
IDMs between Durban and Johannesburg are operating as normal.
Vessel berthing waiting times:
- Pier 1 : 1 – 2 days
- Pier 2 : 1 – 2 days
- Durban Point : 3 – 4 days
CAPE TOWN PORT
Terminal productivity was advised as positive during the week, aside from the delays experienced from inclement weather and equipment delays. Reports are being received that truck drivers are being asked to move out of the terminal / port area when the ports are declared windbound. Transport companies are then expected to rebook and move trucks back into the queues when the port reopens.
Cape Town CFS is seeing high cargo volumes; operations are proceeding as normal.
Vessel berthing waiting times:
- CTCT : 7 days
- CTMPT : 3 days
PORT ELIZABETH / COEGA
Reports have indicated that both ports in Gqeberha are fully operational.
Port Elizabeth CFS is experiencing high cargo volumes, however operations are proceeding smoothly and all IDMs are running as scheduled.
Vessel berthing waiting times:
- Coega : 0 – 24 hours
- Port Elizabeth : 0 – 12 hours
ANNUAL INCREASES
As per usual, most statutory / shipping line costs will increase as of 01 April 2022. Your Logistics Managers or CSM will be contacting you over the next few weeks with your updated rates for the new season.
MEET AND GREET
Please contact your Customer Success Manager to arrange a meet and greet or Dinner in Berlin next month. We are excited to meet onsite again.
