Logistics News Update – 8th July 2025

Welcome to another Logistics News Update.

President Donald Trump has announced a sweeping 30% tariff on all South African exports to the United States, set to take effect on 1 August 2025. However, these tariffs will only be implemented if the US and South Africa fail to reach a new trade agreement before then.

In a letter to President Cyril Ramaphosa, Trump argued that the tariffs are essential because of South Africa’s “persistent trade surplus” and barriers to US goods. Ramaphosa responded by dismissing Trump’s figures as misleading and highlighting that about 80% of US goods enter SA duty-free, with average tariffs of just 7.6%.

The South African government is urgently working to reopen negotiations with the US, hoping to secure a deal that could avoid or reduce the tariffs. Trump, however, has made it clear that relief will only come if South Africa lowers its tariffs or shifts manufacturing to the US.

Key Sectors at Risk

• Citrus and fresh produce exports
• Automotive components
• Wine and alcoholic beverages
• Mining and precious metals

Despite the news, the rand strengthened slightly this week, reflecting a glimmer of hope that negotiations might still succeed. For now, exporters are being urged to consider diversifying markets to reduce reliance on US trade until the situation is resolved.

Trump tariffs sour the fortunes of South Africa’s citrus farmers: South Africa is a key citrus supplier to the U.S. market, especially during its off‑season, sending millions of cartons annually. But President Trump’s announced 31% reciprocal tariff, set to kick in on 9 July 2025, now threatens to push South African citrus out of U.S. shelves. This tariff would increase the cost of a carton by around US $4/4.50, making the fruit much less competitive and putting roughly 35,000 jobs across rural towns like Citrusdal at risk. These communities depend heavily on citrus exports to the U.S. market. South Africa is now urgently seeking exemptions or negotiated tariff relief. The government is exploring diplomatic channels, including trade discussions, and finding new markets, hoping to offset lost U.S. sales. Source: MoneyWeb

We’ll keep monitoring developments closely and will share updates as they happen.

On the local front, there’s a warning that diesel prices are expected to increase by more than 50 cents in the next adjustment due to an under recovery.  

Let’s Learn: What Are Freight Rates?

We often discuss freight rates rising or falling, but what exactly are they?

Freight rates are the prices charged by shipping lines to move your cargo from one port to another. They’re usually quoted per container (like a 40-foot box) or per kilogram for air freight.

What affects freight rates?

• Fuel prices
• Demand for ships or planes
• Port congestion or delays
• Geopolitical tensions are forcing ships onto longer routes

Right now, global freight rates have dropped by around 9% in a week, but they’re still higher than pre-pandemic levels on many routes. Knowing how rates change helps importers and exporters plan costs and protect margins.

A Little Insight: Did you know that in the Ceres apple harvest, the timing between picking and cooling can make or break about 40 % of the crop’s quality? A study found that apples picked early in the morning but only cooled hours later saw temperature swings that reduced shelf life, and logistics teams are racing against the clock to get cold-stored fruit onto trucks within 48 hours to preserve export standards.

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NEWS

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WEEKLY NEWS SNAPSHOT

• South African Ports See Slight Relief in Congestion: Durban, Cape Town and Coega ports have reported average vessel wait times of around four, three, and one day, respectively. Transnet Port Terminals highlights this as a sign of improving port efficiency heading into the second half of 2025. However, weather, equipment constraints and road/rail linkages continue to test throughput in Durban and Cape Town, suggesting more work is needed despite some progress.
• Growing Demand in Air Cargo at OR Tambo: OR Tambo International saw a 13% week-on-week rise in airfreight volumes, reaching 7,154 tonnes—up 16% on inbound and 8% on outbound cargo. This growth reflects South Africa’s expanding global trade links and an uptick in high-value, time-sensitive shipments moving through the country’s main air freight gateway.
• Manufacturing Recovery Blocked by Logistical Snags: South Africa’s manufacturing PMI edged up to 48.5 in June (from 43.1), its highest this year, but still below the 50‑point mark, signalling expansion. The survey linked sluggish production to persistent logistics bottlenecks—even as new orders rose—suggesting that even as demand picks up, distribution and transport challenges remain a brake on full recovery.
• Global Trade Policy Boosts Transport Stocks: In the US, transport sector stocks rallied after the Senate passed a tax-and-spending “Mega bill” expected to revive freight demand. The Dow Jones Transportation Average jumped about 3%, with companies like Ryder, J.B. Hunt, and Landstar seeing 5–7% gains. The measures include accelerated depreciation and R&D write-offs, which investors see as supportive for domestic logistics and manufacturing activity. Source: FreightNews

Key Highlights from Last Week’s Discussions

Source: BUSA, SAAFF, and global logistics data

Weekly Logistics Snapshot – Ending 29 June 2025

• South African Ports:
  • Ngqura to receive MSC Nicola Mastro (24 000 TEU) – a first for SA ports.
  • Weekly volumes down 10% to 87 719 TEUs.
  • Durban Pier 2 fell 18% w/w; Pier 1 rose 26% w/w.
  • Ongoing weather delays and equipment breakdowns.
• Global Shipping:
  • Carriers shifting larger ships to new routes due to geopolitical tensions.
  • Drewry’s World Container Index ↓9% w/w, Transpacific rates ↓16%.
  • European congestion persists despite reliability gains.
• Air Cargo:
  • Global demand ↑2,2% y/y in May; seasonally adjusted volumes ↓1% m/m.
  • Rates ~$2,43/kg, ↑1% w/w but ↓1% y/y.
  • ORTIA volumes softer: inbound ↓10%, outbound ↓7% w/w.
  • MESA volumes rebounded (+10% w/w) post-ceasefire.
• Road & Borders:
  • N4 corridor truck volumes ↑2% w/w, queues worsened to 4 hours avg.
  • SA border times improved to ~9,6 hrs avg. (↓11% w/w).
  • ZIMRA 100% cargo scanning causing delays at key borders.
  • Zimbabwe cobalt export ban extended 3 months.
• Other Updates:
  • Former Transnet execs charged in state capture cases.
  • Maersk resumes Port of Haifa calls after regional tensions ease.

Port Operations Summary: – Port Update:

SOUTH AFRICAN PORTS

Durban          

• Pier 1: 0 days,
• Pier 2: 0 days,
• Point: ½ day

Port Performance Update

• South Africa’s ports have seen encouraging movement recently, with a combined total of 97 000 TEUs moved in the week ending 22 June, followed by 87 000 TEUs the following week. That’s a solid 13% and 2% above the respective weekly targets — a step in the right direction for our national logistics performance.

Weather Watch

• Heavy winds disrupted port operations this past weekend, forcing a temporary closure for several hours.

Vessels at Anchorage

• At the time of reporting, three vessels were waiting at anchor, pending berthing.

Cape Town   

• CTCT: 0–6 days,
• MPT: 0 days   

Terminal Operations Snapshot

Throughput
Continued positive momentum, with local terminal activity contributing meaningfully to the national volume gains already highlighted.

Truck Turnaround Times
At Cape Town Container Terminal (CTCT), truck processing times have averaged around 54 minutes a figure that reflects ongoing efficiency efforts at the port.

PE & Ngqura 

• PECT: 0 days,
• Ngqura: 0–2 days (Light backlog)       

Eastern Cape Terminals Update

Throughput

Local terminal performance has added to the recent national volume growth — positive signs for our freight sector.

• Operational Delays
  • Both Ngqura Container Terminal (NCT) and Port Elizabeth Container Terminal (PECT) experienced ~4-hour delays due to vessel ranging issues.
  • PECT also saw approximately 12 hours of additional downtime caused by faulty reefer units — a key reliability concern for cold chain logistics.
• Truck Turnaround Times
  • NCT: ~36 minutes
  • PECT: ~19 minutes — notable for its responsiveness and flow.
• Milestone Moment
  On 3 July 2025, the MSC Nicola Mastro, an ultra-large container vessel, docked at the Port of Ngqura for the very first time. This historic arrival signals NCT’s rising prominence as a transhipment powerhouse for Southern Africa. Source: Various

Global Freight Rates

Weekly Container Rate Update – 7^th July 2025

Drewry’s World Container Index (WCI) has continued its downward trend, falling 5.7% this week to US$2,812 per 40ft container — the third consecutive weekly decline. The drop reflects ongoing weakness in demand for US-bound cargo, following the earlier tariff-driven surge.

Trans-Pacific Routes

• Shanghai → Los Angeles: Down 15% to US$3,180, though still 17% higher than eight weeks ago
• Shanghai → New York: Fell 11% to US$5,070, but remains 39% above early May levels

Asia–Europe Routes

• Shanghai → Rotterdam: Rose 8% to US$3,468
• Shanghai → Genoa: Dropped 9% to US$3,751

Outlook
Drewry expects spot rates to soften further in the second half of 2025, as excess capacity and weaker demand take hold. The pace of correction will hinge on US tariff decisions and how carriers adjust capacity in response to 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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