Welcome to another Logistics News Update.
A lot is happening in our logistics sector now, from government delays in deciding on high cube containers, to plans for creating a national shipping line under the new proposed cabotage legislation. There’s certainly no shortage of real developments that could affect our economy.
On the logistics side of things, shipping lines are bypassing the Cape and offloading containers in Coega instead. This means cargo is arriving much later than expected. Consider that we’re in the middle of winter in South Africa. Even though it is freezing (in our view), we have the best winters in the world and are blessed with good weather most of the year.
Let’s Learn: What Is a “Feeder Service” in Shipping?
When reading global port updates, you’ll often see terms like feeder networks or feeder vessels — especially in places like the Mediterranean, Asia, or Northern Europe. But what exactly does it mean?
A feeder service is a smaller shipping route that connects regional ports to larger, mainline ports. Think of it like a domestic flight connecting you to a major international hub.
Why are feeder services important?
- They move cargo from smaller ports (which can’t accommodate large vessels) to major transhipment hubs.
- They help consolidate loads for export or distribute imports inland.
- They offer cost-effective solutions for traders in less central locations.
For example, if your cargo is being shipped from East London, it may first be transported via a feeder vessel to Durban or Port Louis, where it’s loaded onto a larger vessel heading to Europe or Asia.
How does this affect your cargo?
- Delays or suspensions, like the current disruptions at Haifa, can affect downstream cargo connections.
- Feeder schedules are tight, so missed connections can cause knock-on delays.
- Planning with visibility tools and allowing buffer time in bookings can help mitigate risks.
Feeder services are a quiet yet essential part of the global logistics chain; understanding how they work helps you make more informed shipping decisions.
A Little Insight: That the apples you buy in midsummer at your local supermarket might have been harvested in Ceres six months earlier, kept crisp and juicy in controlled atmosphere cold stores that slow down time?
NEWS
Cabotage restrictions: Merchant Shipping Bill’s threat exposed
Source: FreightNews – 26 Jun 2025 – by Eugene Goddard
SA Fruit Exports at Risk as Cabotage Debate Heats Up
The Agricultural Business Chamber of South Africa (Agbiz) has raised alarm over the potential damage that the Merchant Shipping Bill (2023) could inflict on the country’s fruit export sector if cabotage restrictions go ahead. Speaking at an Exporters Western Cape meeting, Agbiz’s Annelize Crosby warned that limiting foreign shipping lines from performing coastal shipping services would drive up costs, create delays and undermine efficiency, particularly for South Africa’s valuable reefer cargo industry. Although the government has indicated it may phase in localisation through a proposed state-owned shipping company, critical sections of the Bill remain unchanged, leaving industry stakeholders deeply concerned.
Agbiz, which represents over 100 members across the agricultural value chain, fears unintended consequences if foreign ships are forced to rely on a single-entry port, likely Durban, instead of moving cargo along the coast. This restriction could have major implications for other ports and lead to a more controlled, less flexible shipping environment. Crosby highlighted that the Bill empowers authorities to impose licensing and permitting requirements without detailing exactly how they will operate, adding significant uncertainty for logistics planning.
Central to the objections is the potential disruption to South Africa’s cold-chain logistics, a vital factor in keeping fruit exports competitive, especially given the country’s distance from key markets. Longer transit times caused by trans-shipment delays could severely impact fruit quality and prices, as exporters rely on the shortest possible journey to maintain freshness. Crosby stressed that sanitary and phytosanitary protocols, essential for accessing markets like the EU, could also be compromised if new cabotage processes introduce additional handling stages and increase the risk of breaking the cold chain.
The shipping industry has signalled that exporters shouldn’t expect discounted freight rates to cushion the blow if cabotage rules come into force. Crosby urged that the Bill be sent back to Nedlac for proper scrutiny, warning that the Department of Transport might be underestimating the true impacts. The Parliamentary Portfolio Committee on Transport is set to deliberate on the Bill on 10 July, with industry voices calling for urgent intervention. Some have suggested escalating the issue to the Presidency’s Department of Performance Monitoring and Evaluation, arguing that no legislation should pass without a thorough socio-economic impact assessment…
– Source: FreightNews
WEEKLY NEWS SNAPSHOT
- Cape Town Port Windbound Again: Strong winds disrupted operations at the Cape Town Container Terminal for nearly 12 hours on 24 June, delaying several vessels. Operators are pressing Transnet for further investment in wind-resilient equipment to keep cargo moving during Cape Town’s winter months.
- Durban Rail Volumes Fall 53%: Rail volumes out of Durban plummeted by 53% in the past week compared to normal averages, partly due to equipment failures and ongoing diesel haulage challenges. Road freight has picked up the slack, but costs are rising, and congestion is worsening.
- SARS Reviews Clearance Processes for Courier Sector: SARS announced a review of customs procedures for courier shipments under de minimis rules, with industry consultations planned for July. The review aims to clamp down on under-declared values in e-commerce imports.
- Maersk Eyes Return to Haifa Port: Maersk signalled that it may resume calls to Haifa after months of suspension due to Middle East conflict risks. However, the shipping giant is cautious, citing the fragile ceasefire between Israel and Hezbollah and ongoing volatility.
- Transnet Orders New RTGs for Durban: Transnet confirmed an order for 14 new rubber-tyred gantry cranes for the Durban Container Terminal, expected for delivery in late 2025. The new cranes will help tackle vessel backlogs and boost efficiency.
- Mozambique Port Projects Gain Momentum: The government of Mozambique approved further investment into developing the Port of Macuse, aiming to add 30 million tonnes of annual capacity. The port will mainly serve coal and agricultural exports, offering an alternative route for regional trade.
- Botswana to Stick with Stricter Border Clearance: Despite protests from freight bodies, Botswana confirmed it will continue individual truck inspections instead of consolidated cargo clearance on the Trans-Kalahari Corridor. This is fuelling fears of persistent congestion and increased costs for SA exports to the region. Source: FreightNews
Key Highlights from Last Week’s Discussions
Source: BUSA, SAAFF, and global logistics data
Week in Review – 22 June 2025
This Week’s Logistics Highlights
Record Container Throughput
- A total of 97,248 TEUs was handled across SA’s ports last week — the highest weekly total on record.
- Pier 2 led the charge, and throughput came in 13% above forecast.
- This result reflects progress in operational recovery, with credit due to TPT teams, logistics partners, and recent investments in equipment and terminal upgrades.
Global Shipping Watch
- Geopolitical concerns continue to dominate: Iran’s parliamentary push to close the Strait of Hormuz could disrupt 3,4% of global container flows, prompting possible rerouting via the Suez Canal.
- Maersk suspended vessel calls at Haifa, citing crew and cargo safety, disrupting East Med feeder networks.
- Northern Europe remains under strain: volumes on the Asia, Northern Europe Lane are up 17% over two years, with capacity rising 11,7% year-on-year, fuelling congestion.
- After six weeks of steady increases, global spot rates dropped 7% this week — a sign the recent rally may be short-lived.
Cross-Border Flows – N4 & SADC Corridors
- Lebombo Border Post handled 1,626 trucks per day (↑6%), now operating above design capacity.
- Queue times eased to 2.9 hours, and average processing dropped to 2.5 hours.
- Rail cargo to Maputo dipped due to annual maintenance, with only seven trains recorded before the shutdown. Most freight has temporarily shifted to the road.
- South African borders had longer delays (9.3 hours avg), while SADC region border posts held steady at 4.7 hours.
- Estimated indirect cost of cross-border delays: R120 million this week.
Air Freight Growth Continues
- Air cargo at OR Tambo reached 7,154 tonnes, a 13% weekly rise.
- Inbound ↑16%, outbound ↑8%.
- Year-to-date air cargo volumes are now 5% ahead of 2024 levels.
- Johannesburg +6% y/y, Cape Town +12%, Durban +25%.
- Domestic airfreight is also picking up, led by Johannesburg. Global capacity remains tight, with Africa showing the strongest demand growth.
Port Operations Summary: – Port Update:
SOUTH AFRICAN PORTS
Please note: Shipping lines are either cutting and running or offloading containers at alternative ports to avoid delays. Please monitor closely.
Durban
- Pier 1: 1-2 days,
- Pier 2: 1-2 days,
- Point: 1–2 days
The steady activity reflects persistent congestion. Delays remain despite improvement from last year.
Cape Town
- CTCT: 0–6 days,
- MPT: 0 days
Although the rain has eased, Cape Town is still battling strong winds, which are disrupting operations and slowing turnaround times at CTCT.
PE & Ngqura
- PECT: 0 days,
- Ngqura: 0–2 days (Light backlog)
Strong winds noted, no delays yet. Source: Various
Global Freight Rates
Weekly Container Rate Update – 26 June 2025
Drewry’s World Container Index (WCI), the global benchmark for 40ft container spot rates, decreased by 9% this week, falling to US$2,983. This marks the second consecutive weekly decline, driven primarily by softening demand for US-bound cargo following several weeks of tariff-driven peaks. Spot rates from Shanghai to New York slid 13% to US$5,703, yet remain approximately 56% higher than seven weeks ago, indicating that the recent import surge was short-lived. On the west coast, Shanghai to Los Angeles dropped by 20%, but stays elevated, about 38% above levels seen seven weeks prior
Meanwhile, European trades remain firmer: rates from Shanghai to Rotterdam rose by 1% to US$3,204, and Shanghai to Genoa edged up 1% to US$4,100. This suggests capacity constraints persist on Asia–Europe routes, even as demand cools on trans-Pacific lanes. Looking ahead, Drewry forecasts that spot rates will weaken further in the second half of 2025, once the effects of lingering supply-demand imbalances surface. The timing and extent of any recovery or correction will depend heavily on evolving US tariff rulings and shipping capacity adjustments tied to US penalties on Chinese vessels.
– 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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