This update provides a consolidated overview of the South African supply chain and the current state of international trade. Commercial ports handled an average of 5,737 containers per day, a significant decrease from 8,244 containers last week. Adverse weather conditions and equipment breakdowns severely impacted port operations. Poor weather in Cape Town earlier this week resulted in approximately 23 hours of lost operational time due to rain. The Port of Durban was closed to incoming traffic due to adverse weather, while strong winds and vessel ranging affected operations at our Eastern Cape Ports for parts of the week.
The container shipping market is experiencing an intensified capacity shortage. Notably, Maersk ceased operations of a transpacific service merely eight weeks after its inauguration. Nearly 50% of westbound Asia-Europe sailings have not adhered to their scheduled departure times, exacerbated by ongoing port congestion in Southeast Asian hubs. Global freight rates have continued their upward trajectory for the ninth consecutive week, registering a 13% increase last week. Since the end of March, the SCFI has accrued a 76% increase, with no signs of decline in the immediate future. The containership charter market remains robust, with rates increasing by 10% last week. Despite the addition of over 280,000 TEU of new capacity in the past month, carriers’ demand for tonnage remains unmet. In the futures market, China-Europe freight contracts for the end of June and August are trading at a 10% premium over current spot rates. This premium could escalate if spot rates continue their upward trend.
Key Notes:
- An average of ~5 737 containers was handled per day, with ~8 979 containers projected for next week.
- Cross-border queue: ↑7,0 hrs; transit: ↑8,2 hrs; SA borders: 12,1 hrs (↑44%); SADC borders: 9,7 hrs (↑87%).
- Rail cargo handled out of Durban was reported at 3 262 containers, up ↑5% from last week.
- The WB’s CPPI shows an average port call of 40,5 hours, as global container moves is around 23,5/hour.
- Global freight rates continued to increase – this week by ↑11,6% (or $490) to $4 716 per 40-ft container.
- Global air cargo (CTKs) expanded by ↑11,1% (y/y), with a slight monthly growth of ↑0,2% (m/m).
Port operations – General:
- Adverse weather conditions and equipment breakdowns severely influenced port operations. Continued poor weather prevented optimal operational performance in Cape Town earlier this week as CTMPT conceded around 23 hours to rain.
- The Port of Durban was closed for incomings earlier this week due to adverse weather, while strong winds and vessel ranging hampered operations at our Eastern Cape Ports for parts of the week.
- The latest reports suggest that Transnet has awarded a tender for the first 20-megawatt (MW) solar photovoltaics (PV) plant at the port as part of its commitment to decarbonise its port operations under its Renewable Energy Purchase programme.
- Furthermore, the TFR monthly shutdown took place on Monday from 06:00 to 18:00, while a cable theft incident took place between Tuesday and Wednesday and delayed operations on the ConCor for about eight hours.
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