Welcome to another Logistics News Update.
Weather Alert: Cold Front Incoming: The SA Weather Service has issued alerts for an intense cold front expected from Wednesday, 25 June to Friday, 27 June.
Key warnings include:
- Level 4 warning for damaging waves (from Wednesday evening)
- Level 2 warning for damaging winds (Wednesday)
- Level 2 warning for disruptive rainfall (Wednesday into Thursday morning)
1. Port Operations Delays
- Cape Town and Durban are likely to experience berth closures or slowdowns due to strong winds and high swells.
- Wave heights flagged under the Level 4 warning can make it unsafe for vessels to dock or depart, especially smaller feeders.
- Crane and cargo handling may be halted if wind speeds exceed safe limits.
2. Vessel Schedule Disruptions
- Vessels may need to slow down, anchor offshore, or reroute to avoid storm-affected areas, causing ETA shifts and knock-on effects across the shipping line schedules.
- Transshipments via Cape Town or Ngqura may be delayed.
3. Road Transport Challenges
- Disruptive rainfall and damaging winds could impact container transport to and from the ports, particularly through areas with poor drainage or flooding risks.
- Truck turnaround times at depots and terminals could increase due to reduced operational capacity.
4. Increased Risk to Cargo
- If containers are exposed to heavy rain without proper sealing or tarping, water damage risks go up.
- Clients should be advised to double-check cargo waterproofing and lashing for safety.
Let’s Learn: Incoterms: Who’s Responsible for What?
Incoterms (short for International Commercial Terms) are global rules used in trade contracts to spell out who handles the cost, risk, and responsibility at each stage of the shipping process. For example, under FOB (Free on Board), the seller handles everything until the goods are loaded on the vessel, while under DAP (Delivered at Place), the seller carries the risk and cost almost all the way to the buyer’s door.
Why it matters:
If you don’t know what your Incoterm covers, you could end up paying for charges you thought the other party was handling, or taking on risks you didn’t plan for. We’ve seen clients caught out by unclear terms, leading to disputes or unexpected costs on arrival.
Tip: Always confirm the Incoterm in writing before the shipment moves. And if you’re unsure, ask your forwarder or clearing partner to explain what your chosen term means for your bottom line
NEWS
Local macadamia exports continue to dominate
Source: FreightNews – Staff Reporter
UUS–South Africa agree poultry deal, fruit exporters hopeful next
South Africa is emerging as a global leader in macadamia production, despite obstacles such as recently imposed tariffs by the United States. According to Alex Whyte, director of Green Farms Nut Company, the country’s industry remains resilient amid market instability and pricing pressures. Forecasts suggest that macadamia output could potentially double within the next ten years. Prices over the 2022–2024 period had slowed crop-growth momentum, prompting some growers to scale back investment or remove orchards altogether, resulting in lower yields.
Unfortunately, the original estimate of 95 500 tonnes for the 2025 harvest might be missed. Nevertheless, production is still anticipated to reach between 90 000 and 94 000 tonnes. Whyte stressed that long-term prospects for the sector remained positive. Figures from the International Nut Council show South Africa leading the global rankings, with 2024 production expected at 89 200 tonnes and a rise to 95 500 tonnes by 2025 In China, the comparative figures are 69 500 tonnes in 2024 and 74 500 in 2025.
Australia follows with expected yields of 53 950 tonnes and 56 890 tonnes over the same years, while Kenya and the United States trail with significantly lower projections. South Africa is home to an estimated 1 300 to 1 500 macadamia growers, typically managing farms of around 50 hectares. Approximately 95% of South Africa’s macadamia harvest is destined for export markets…
– Source: FreightNews
WEEKLY NEWS SNAPSHOT
Port of Durban sets new record with MSC Rifaya: On 9 June, the Port of Durban berthed the MSC Rifaya, a 400 m, 19 466 TEU ultra‑large container vessel—the largest container ship ever to call in SA. It stayed in port until around 13 June 2025
Durban Multi‑Purpose Terminal moves over 200 000 TEU: The Durban Multi‑Purpose Terminal hit a key milestone in the 2024/25 financial year, handling more than 200 000 TEU, well above its 131 106 TEU target—thanks to extra equipment support from MSC
SARS updates facility codes on Customs Declaration: On 13 June, SARS added two new de‑grouping facility codes to box 30 of the Customs Clearance Declaration: FTL Freight and Transit (CF) and RT Clearing and Forwarding (CE), both at OR Tambo
Trans-Kalahari Corridor hits record congestion: Botswana’s decision to end consolidated-cargo clearance, plus Limpopo flood damage, has seen truck queues reach 20 km at Skilpadshek and Kopfontein. Stakeholders warn that unilateral border rules are turning into costly non-tariff barriers. Source: FreightNews
Key Highlights from Last Week’s Discussions
Source: BUSA, SAAFF, and global logistics data
Week in Review – June 2025
Ports & Rail
- Container Volumes: ↑3% weekly (88,117 TEUs), but ↓9% yearly (May ’25 vs May 24).
- Daily Average: 12,588 TEUs handled (↑3% vs projection).
- Durban Rail Collapse: Containers moved ↓53% weekly (1,641 vs 3,468).
- Bulk Cargo Strength: ↑6.4% year-to-date (bright spot).
- Operational Challenges:
- Cape Town: Equipment shortages & vacant berths.
- Durban: Crane breakdowns (Cranes 520/526/528 offline) & storms.
- Richards Bay: ↓43% coal throughput due to weather.
Air Cargo
- International: ↑13% weekly (7,155 tons), led by OR Tambo (↑21% yearly).
- Africa Leads Globally: ↑8% chargeable weight, ↑4% rates (demand outstrips capacity).
- Domestic: Mixed results, Johannesburg ↑34% monthly, Durban ↓9% yearly.
Border Delays & Road Freight
- SA Border Queens: ↑11% to 9.3 hours (Beitbridge worst at 27 hours).
- SADC Stability: Avg. 4.7 hours (no change).
- N4 Corridor: ↑6% truck volumes (1,530 HGVs/day).
- Cost of Delays: R120 million/week (↑4.7% from R115m).
Global Shifts
- MSC Dominance: Nearing the world’s largest terminal operator if Hutchison bid succeeds.
- Alliance Reshuffle: Ocean Alliance leads (4.37m TEU), Gemini (Maersk/Hapag) at 3.69m TEU.
- Freight Rates: Global container rates ↑0.5% ($3,543/40ft); Africa air rates ↑4%.
Critical Developments
- Transnet Wage Deal: 3-year ↑6% annual increase secured with unions (UNTU/SATAWU).
- Infrastructure Risks: Copper theft (DRC’s N1 route), cable theft (Pretoria rail).
- Container Sector Lag: Still ↓4.9% below 2019 levels—threatening broader recovery.
Bottom Line: Bulk cargo and air freight show resilience, but container logistics and border inefficiencies remain drags on SA’s trade-driven economy (64% of GDP).
Port Operations Summary: – Port Update:
SOUTH AFRICAN PORTS
Port Waiting Time Update Key Notes
Durban
- Pier 1: 0 days,
- Pier 2: 0 days,
- Point: 1–2 days
Cape Town
- CTCT: 0–6 days,
- MPT: 0 days
Weather and backlog of ongoing risks
PE & Ngqura
- PECT: 0 days,
- Ngqura: 0–2 days
Strong winds noted, no delays yet. Source: Various
Global Freight Rates
Weekly Container Rate Update – 19 June 2025
After six weeks of increases, global container rates have dropped 7%—the first decline in over a month. This signals that the recent surge in US imports, following the temporary pause on higher US tariffs, may not have a lasting effect on demand.
Drewry warns that spot rates are likely to decline again in the second half of 2025 as supply increases and policy uncertainty—especially around new US penalties on Chinese ships—adds further volatility.
–Source: Drewrey
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This week’s news was brought to you by:
FNB First Trade 360 – a digital logistics platform and Exporters Western Cape
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