PUBLISHER: B4SA
We would like to share with you some key highlights that we have extracted from the latest version of the Cargo Movement Report.
Key highlights:
- An average of ~9 232 TEUs per day was handled last week, ↑21% from the previous week.
- Cross-border queue (~4,5 hrs) and transit (~18,7 hrs) times cost R293 million (↓7%) this week.
- As with international air cargo (↑8%), domestic air cargo also experienced a noteworthy rise (↑12%).
- Unsurprisingly, the “WCI” continues its record surge, with freight rates ↑4,2% to $8 399 per 40-ft.
- Container throughput slipped by ↓2,5% to 137,6 points in April, remaining high after a record in March.
- International air cargo volume remains strong (↑50% compared to Q1 2019) but is insufficient to compensate for the sharp loss in passenger business (↓74% versus Q1 2019).
Other highlights:
- In the container market in South Africa, the recent trend continues, as boxes loaded (55%) are outstripping boxes discharged (45%), further exerting pressure on the global imbalances.
- Stack occupancy at CTCT is 75% for reefer containers this week, which has led to shipping lines ceasing to accept reefers until Monday at 18:00.
- South African Borders continue to close due to the Department of Health resources.
- COVID-testing at some SADC borders remains an issue, with Botswana now requiring testing as well.
- The industry had numerous issues at Beit Bridge last week, with long queues. One of the reasons given one day was that there was no water at the border, resulting in long waiting times.
- According to UNCTAD, South Africa is set to lose between an estimated ↓5,5% and ↓8,1% of GDP this year due to the lack of tourists visiting the country. If the vaccine rollout remains slow and our borders remain close, this figure is likely to increase.
- Across all regions, only Africa registered an increase in container output for the month of April, coming in at 6,7%.
- The average demurrage and detention charges at the leading 20 container ports are up 104% compared with a year ago as carriers press to keep containers moving. For example, cargo owners at Long Beach face average fees of $2 638 two weeks after discharge, compared with just $132 at Busan.
- The impact of tight container shipping capacity is set to be eased, as container manufacturers in China had raised output to 500 000 TEU a month. China controls more than 80% of global container production.
- Global airline passenger revenues declined sharply (↓74% versus Q1 2019). Conversely, the cargo business maintained its strength, increasing by ↑50% compared to Q1 2019 as the broader economy rebounds.
- International air cargo revenues remain robust but were insufficient to compensate for the sharp loss in the passenger business, resulting in a ↓65% drop in overall aviation revenues.
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