Logistics News Update – 11th November 2025

Welcome to another Logistics News Update.

As we move deeper into November, the logistics and trade sectors continue to find a balance between opportunity and uncertainty. Freight rates have now risen for a third consecutive week, led by increases on Asia to US and Asia to Europe routes. Carriers are trying to recover margins but with global capacity still higher than demand, these gains may be short-lived.

Locally, the picture is mixed. The Eastern Cape remains a consistent performer with steady port operations and minimal disruption. In contrast, Durban continues to face vessel congestion and weather-related slowdowns. For exporters planning ahead for 2026, the message is clear: early booking and tighter coordination remain essential.

At a policy level, discussions around AGOA renewal continue in the background. While the government remains confident of a positive outcome, the uncertainty reminds us how closely trade access and logistics performance are linked. Exporters and importers who plan early, diversify markets, and maintain visibility across the full supply chain will continue to hold the advantage.

Trade

•  Airfreight Strategy Released: The Department of Transport has published South Africa’s draft Airfreight Strategy for public comment. It outlines plans to modernise air-cargo corridors, expand drone logistics, and improve regional airport capacity.
• Ports Show Improvement: Container terminals across the country recorded their highest combined throughput since the pandemic, handling over 1.29 million TEUs between June and August, signalling gradual stability in port operations.
•  Private Investment Momentum: Interest in Transnet’s rail and port reform continues to grow, with strong international participation expected as formal bids open before year-end.
•  Maersk Expands Multimodal Offering: Maersk has launched its integrated sea-railroad “one-partner” model in South Africa to simplify export operations and strengthen supply-chain visibility.
•  Fuel Price Relief: From 5 November, petrol dropped by 51 cents per litre and diesel by around 20 cents, easing local transport and logistics costs.
•  Tariff Talks Continue: Government remains in discussions with the US to reduce or remove the 30% tariff on South African automotive and citrus exports, with cautious optimism for resolution before year-end.
•  AGOA Renewal Confidence: Officials maintain that South Africa’s trade benefits under AGOA are secure, which would provide policy stability heading into 2026. Source: Various 

 What is the news

• SA Canegrowers has raised an alert about a surge in low-cost sugar imports. Between January and August 2025, imports reached 149,099 tons (up from ~35,730 tons in the same period in 2024). Domestic sugar sales have fallen by an estimated 100,000 tons, representing a potential R760 million loss to local producers.
• A case of Foot‑and‑Mouth Disease (FMD) has been confirmed on a farm near Gouda in the Western Cape. Authorities have instituted a quarantine of the affected farm plus surrounding properties within a 10 km radius and are investigating animal movements linked to the outbreak.
• The Department of Agriculture, Land Reform and Rural Development has approved the formal declaration of indigenous crops and medicinal plants as agricultural products under the Marketing of Agricultural Products Act. This opens up a sector estimated to be worth around R12 billion annually.
• Early signs for the 2025-26 summer crop planting season are positive. The agricultural outlook notes encouraging conditions for crops and oilseeds, offering some hope for the year ahead.
• Spot ocean freight rates from the Far East to North Europe rose by ~18%, as cargo demand shows early signs of recovery.
• The first phase of South Africa’s new small harbours programme was launched in Port Shepstone (KwaZulu-Natal), marking the first new small harbour development since 1994.
• Questions are being raised about whether local training programmes for freight-forwarders and customs professionals are keeping pace with industry needs, particularly in digital and STEM skills.
• Despite the uptick in spot rates, carriers and analysts remain cautious: structural overcapacity remains in global container shipping and long-term rates are still well below peaks.
• The macadamia industry in South Africa is under pressure as China expands its own production and cracking capacity, which could reduce demand for in-shell exports from South Africa.
• Because of the combined forces of short-term rate movements, infrastructure reform and skills-supply issues, importers and exporters will need to maintain high transparency of landed cost and supply-chain risk. Source: FreightNews & SA News

Let’s Learn: Managing Freight Rate Volatility

Freight rates are moving again. After months of decline, ocean rates have climbed for three consecutive weeks on the main Asia–Europe and Asia–US routes. While this may seem far removed from South African trade, these shifts ripple across global supply chains and directly influence import and export pricing.

What’s Driving the Changes
• Capacity control: Carriers are reducing sailings to stabilise rates and protect margins.
• Seasonal demand: Pre-holiday shipments and restocking in key markets are lifting volumes temporarily.
• Fuel adjustments: Bunker prices and surcharges rise or fall with oil, feeding into freight rate calculations.
• Geopolitical factors: Policy changes, tariffs, or trade talks can shift shipping patterns almost overnight.

Why It Matters
Rate changes can affect landed cost, profit margins, and competitiveness. Importers might face higher logistics expenses on incoming stock, while exporters may see freight surcharges added to quotes or invoices after bookings are made.

What You Can Do
• Request all-in rate validity periods before confirming shipments.
• Lock in rates for key trade lanes where possible.
• Track bunker and currency trends that influence rate adjustments.
• Build small buffers into quotes to absorb unexpected increases.

Key Point: Freight rates move in cycles. Understanding the reasons behind the shifts helps you anticipate changes instead of reacting to them. Staying informed and keeping flexibility in your pricing and planning can make a measurable difference to your bottom line.

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NEWS

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Key Highlights from Last Week’s Discussions – 2^nd November 2025

Source: BUSA, SAAFF, and global logistics data

1. Port Operations

South African ports handled 82,281 TEUs, down 21% from last week. Throughput averaged 11 754 TEUs per day.

• Durban Pier 2: 36 029 TEUs (↓13%)
• Durban Pier 1: 16 322 TEUs (↓4%)
• Cape Town: 12 854 TEUs (↓35%) with 30 operational hours lost to weather.
• Ngqura: 12,075 TEUs (↓38%) and Port Elizabeth: 660 TEUs (↑33%).
• Rail cargo: 4,074 containers (↓2%) due to a City Deep–Mafikeng line closure.
• Equipment shortages, vacant berths, and poor weather constrained most ports.
• Maersk reported no waiting times at CTCT, CTMPT, NCT, and PECT, while Durban had 1–3 day waits.

Summary: Adverse weather and equipment constraints reduced throughput, especially in Cape Town and the Eastern Cape. Durban remains stable but hampered by rail issues and limited equipment.

2. Air Cargo

• Inbound: 688 000 kg/day (↑7%)
• Outbound: 427 000 kg/day (↓15%)
• Total: 7,81 million kg (↓3%)
  ORTIA’s volumes are 2% higher than a year ago. The BMA Port Health backlog (~4,800 shipments) was fully cleared, a major improvement.
  Operational notes:
• Foreign Operator Permit delays continue to disrupt schedules.
• ACSA cargo leases remain unresolved.
• Deadline for Airfreight Strategy submissions is 7 November.

Summary: Strong volumes continue but systemic issues (permits and leases) pose risks to consistency. The BMA backlog clearance is a key positive development.

3. Road and Border Crossings

• Lebombo: 1 462 trucks/day (↑4%), queue 5.3 h and processing 5.2 h (steady).
• SA borders: 10.1 h (↓8%); SADC average: 5.0 h (↓14%).
• Disruptions: Beitbridge (ZIMRA 100% scanning and cargo theft), Nakonde (political unrest in Tanzania), Sakania (fire and congestion).
  Summary: Border times improved slightly, but isolated issues remain. Estimated regional delay cost: $28.3 million (R488 million).

4. Ocean Freight and Global Shipping

• Drewry World Container Index: $1 822/FEU (↑4.4%) for the third week running.
• Port Throughput Index: ↑1.3% month-on-month and ↑5.1% year-on-year.
• US–China: reciprocal port-call fees suspended for 12 months following trade talks.
• Crude Tanker Equity Index: up 51% YTD.
• Suez route partially reopening (CMA CGM test run) but most traffic still via Cape.

Summary: Freight rates remain firm with signs of reversal ahead. Trade relations between the US and China are showing tentative improvement.

5. Global Air Cargo

• Global airfreight demand ↑2.9% y/y in September.
• Africa remains the fastest-growing region (↑14.7%).
• Spot rates ↑4% w/w with Asia-US lanes at $5.40/kg and Korea-US at $5.73/kg.
• Global capacity ↑4%, rates ↑5% over 2024.
• UPS cargo plane crash in Kentucky killed seven, raising concerns about freighter capacity and safety.

Summary: Airfreight demand remains robust, supported by Asia exports and Africa’s growth. Capacity expansion is steady but supply chain risks remain

Port Operations Summary: – Port Update:

Global Freight Rates

Weekly Container Rate Update – 6th November 2025

Global Freight Rates Continue Short-Term Recovery

Drewry’s World Container Index increased 8% this week to $1,959 per 40ft container, marking the fourth consecutive weekly gain after a 17-week decline. The recent rise follows the implementation of General Rate Increases (GRIs) on 1 November, which have temporarily lifted spot rates across major trade lanes.

On the trans-Pacific route, spot rates from Shanghai to Los Angeles rose 9% to $2,647 per 40ft container, while rates to New York climbed 8% to $3,837. Carriers are using GRIs to counter downward pressure from excess capacity, but analysts expect the momentum to ease unless additional increases are announced later this month.

On the Asia–Europe corridor, spot rates from Shanghai to Rotterdam increased 9% to $1,962, and rates to Genoa rose 8% to $2,111. In an effort to strengthen pricing ahead of annual contract renewals, carriers have announced new Freight All Kinds (FAK) levels ranging between $3,000 and $3,600 per 40ft, effective 15 November.

While the short-term rise reflects tighter capacity management and seasonal demand, Drewry’s Container Forecaster continues to caution that the overall supply–demand balance remains weak. Unless trade volumes strengthen, rates are expected to soften again before year-end once the current GRI effect fades.

Key Takeaway: Carriers are stabilising rates through coordinated GRIs, but underlying fundamentals suggest that the current recovery may be temporary. Shippers should remain alert to renewed volatility as capacity and demand continue to rebalance. 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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