It is fair to say that most South African importers and exporters are feeling the impact of the current delays in Durban. Unfortunately, we do not see this changing in the foreseeable future.
As a forwarder, we have noted that vessels have been terminating their voyages in Port Elizabeth, with containers being discharged and moving on feeder vessels to Durban. Alternatively, Durban cargo is being shipped to Port Elizabeth in order to meet the connecting vessel.
The delays in Durban have resulted in a backlog of trucks sometimes taking as much as a day to collect the containers. We have also experienced vessels’ ETAs being altered owing to port delays.
For containers originating in the Gauteng, North Gauteng and greater areas, Port Elizabeth has become a favoured loading port for export cargo and in the case of imports the city serves as a good option for import cargo.
Although this has allowed cargo to move to their final destination faster, there are cost implications of Port Elizabeth vs. Durban. Railage costs from Port Elizabeth to Johannesburg are the same. However, Road Haulage, depending on origin, is approx. R2000-R4000 more expensive. (Your forwarder/customs agent would be able to give you the cost comparisons).
We are all aware that margins are tough and that we are all currently looking at cost cutting. It may, however, be prudent to explore these options if the trucking cost differential is not a “deal breaker” in either the buying or selling price of your goods.
On a different topic, but still on transportation; “silly season” has arrived with regards to airfreight. There is no doubt that the airlines are being overbooked as many of the forwarders are encountering longer lee times than previously. This has indirectly been as a result of the hurricanes in America, when vessels were unable to sail for 3 weeks and customers have chosen to airfreight urgent cargo. Last week one of our consignments was delivered to the airline at JFK with the initial ETA being 3 November. It has now moved out to 10 November. We requested a flash rate only to be told that they were not selling flash rates for the time being.
Alistair Heald : 9 November 2017