Welcome to another Logistics News Update.
President Donald Trump has announced a sweeping 30% tariff
We all waited for the news on the 9th of July, but Donald Trump instead hit us with a possible 30% tariff if we didn’t make a deal before the 1st of August 2025. He has also threatened to put a 100% tariff on BRICS countries and 10% on countries that trade with BRICS countries.
We have to ask why he is threatening, as on all counts, we as South Africa, will suffer. No one knows what is going to happen, but the most important thing is not to panic. Rather, as we have said before, start seeking alternative markets just in case, but wait until we know exactly what is happening with South Africa and the USA, and then we can deal with what comes as a BRICS member.
Let’s Learn: What is a Tariff?
You’ve probably heard a lot about tariffs in the news lately, but what exactly is a tariff?
A tariff is a tax that a government charges on goods coming into the country from abroad. It’s usually calculated as a percentage of the value of the goods. For example, if the US puts a 30% tariff on citrus fruit from South Africa, American importers will pay an extra 30% on top of the price of that fruit when it enters the US.
Why do countries use tariffs? Sometimes it’s to protect local industries from cheaper imports. Other times it’s used as a bargaining chip in trade negotiations or to raise money for the government. The problem is, tariffs often make goods more expensive for consumers and can hurt exporters by making their products less competitive. Right now, the US threat of tariffs on South African goods is causing big uncertainty. Businesses are worried about higher costs, lost markets, and the knock-on effects for jobs and the economy.
A Little Insight: Did you know that in 2023, South Africa exported around R18 billion worth of goods to the US under preferential trade agreements? A large chunk of that was cars, citrus fruit, and minerals. If tariffs hit, those goods could suddenly become too pricey for US buyers, putting billions in exports and thousands of local jobs at risk. It’s a stark reminder that global trade politics can have very real consequences for businesses at home.
NEWS
Where Trump’s tariffs will hurt most:
Source: MoneyWeb 98th July 2025 – by Ciaran Ryan
Who suffers?:
Farmers and car manufacturers will feel the pain. Most miners get a free ride. The economy will take another hit. (Source: MoneyWeb)
President Trump announced a sweeping 30 % reciprocal tariff on South African exports to the U.S., effective from 1 August 2025, if South Africa doesn’t come to the table with a trade deal.
While the tariff will hit many sectors, critical minerals like platinum group metals (PGMs), gold, chrome and coal are exempt. These materials are considered essential to U.S. strategic and industrial needs, so they’ve been carved out from the list. That leaves exports like vehicles, agricultural products, and processed goods particularly vulnerable. Citrus growers are flagging the threat. A 30 % tariff could raise the price of South African citrus in the U.S. by up to $4.25 per carton, making them less competitive. Industry bodies warn this could cost around 35,000 jobs in rural farming towns like Citrusdal.
Financially, the rand has already taken a dip, losing about 1 % following Trump’s announcement, while South African government bonds weakened. President Cyril Ramaphosa has denounced the tariff, stating it’s based on flawed data. He emphasises the need to finalise trade negotiations before the 9 July deadline, warning that failure could worsen economic fallout.
Despite minerals being exempt, the broader trade implications are serious. Even unaffected sectors can feel ripple effects of higher logistics costs, exchange rate volatility, and investor uncertainty. This means the tariff impacts will be felt far beyond just the targeted export lines, affecting South Africa’s broader economic stability.
South African President Cyril Ramaphosa said there’s the prospect that the US may lower a planned 30% tariff on goods in ongoing talks with Washington, as he challenged its calculation of the new levy…
– Source: MoneyWeb
WEEKLY NEWS SNAPSHOT
- Port Congestion Eases Slightly: Durban, Cape Town and Coega ports reported average vessel wait times of around four, three and one day, respectively. Transnet sees this as a positive step for port efficiency as we head into the second half of 2025. Still, weather, equipment issues and road or rail problems continue to hold back smoother operations in Durban and Cape Town.
- Airfreight Surges at OR Tambo: Air cargo volumes at OR Tambo climbed 13% week-on-week to 7,154 tonnes. Inbound freight rose 16% and outbound 8%, showing stronger global trade ties and growing demand for high-value, urgent shipments through South Africa’s main air hub.
- Manufacturing Edges Up Despite Logistics Hurdles: South Africa’s manufacturing PMI ticked up to 48.5 in June, its best level this year but still below the 50 mark that signals growth. The sector remains hampered by logistics bottlenecks, even as new orders improve, slowing any full recovery.
- US Policy Lifts Transport Stocks: In the United States, transport stocks gained ground after the Senate passed a “Mega bill” aimed at boosting freight demand. The Dow Jones Transportation Average rose about 3%, with logistics companies like Ryder, J.B. Hunt and Landstar up between 5% and 7%, driven by tax incentives and support for manufacturing.
- Gqeberha exporters brace for US tariff blow: Exporters in the Nelson Mandela Bay area are preparing for a tough hit after the US announced a 30% tariff increase on South African exports effective 1 August 2025. The automotive and agriculture sectors—including citrus and vehicle components—are at risk, with potential job losses and economic strain in the region.
- New compliance era: mandatory ESG data: As of the 2025–26 financial year, public and state-owned companies must file digital ESG reports via CIPC in iXBRL format. The JSE has also aligned its requirements with IFRS S1 and S2 standards, increasing pressure on exporters to meet rising investor and regulatory demands.
- CCMA steps in on Transnet wage talks: Though this isn’t from the past week, it’s still unfolding: the CCMA is mediating revised salary offers with the UNTU ahead of a possible 48-hour strike notice showing labour tensions continue to loom over logistics operations. Source: FreightNews
Key Highlights from Last Week’s Discussions
Source: BUSA, SAAFF, and global logistics data
Weekly Logistics Snapshot – Ending 6th July 2025
South African Ports:
- Container volumes reached 97,529 TEUs, up 11% from last week.
- Durban Pier 2 handled 37,442 TEUs (↑7%), while Pier 1 rose to 17,568 TEUs (↑8%).
- Cape Town handled 13,589 TEUs (↑16%); Ngqura saw 15,445 TEUs (↑6%).
- Adverse weather caused 30+ hours of downtime in Cape Town; Durban struggled with equipment failures and congestion.
Global Shipping:
- Drewry’s World Container Index fell another 5,7% to $2 812/40ft – the third weekly drop.
- Global carrier fleet grew 3,8% in H1 2025 (1,18 million TEU), mainly from MSC’s expansion.
- Weak demand continues to weigh on spot rates.
Air Cargo:
- ORTIA’s air freight volumes surged to 6,777 tons, up 15% w/w.
- Inbound: ~4,198 tons (↑11%).
- Outbound: ~2,579 tons (↑23%).
- Global air cargo rose 2% y/y in June but slipped 4% vs May.
- Rates globally edged up 2% m/m but remain 1% below June 2024 levels.
Road & Borders:
- N4 corridor truck volumes dropped to 1,564 vehicles/day (↓5% w/w).
- Border queue times rose to 4,4 hours (↑10%); transit times increased to 4,3 hours (↑19%).
- Average SA border crossing time climbed to ~11,2 hours (↑17%).
- The illegal SADC Truck Drivers’ fee at Kasumbalesa shut down after intervention.
- Groblersbrug border saw improvements, while Beitbridge remains problematic.
- Temporary N1 closure between Colesberg and Hanover after an LPG truck overturned.
International Trade & Policy:
- Global trade grew by ~2% in Q2 2025 despite geopolitical risks.
- WTO’s Goods Trade Barometer rose to 103,5 in June, signalling above-trend trade activity.
- Persistent threats from new US tariffs, including a planned 30% duty on South African goods from 9 July, remain a major concern for exporters.
Port Operations Summary: – Port Update:
SOUTH AFRICAN PORTS
Summary
| Port | Wait Time | Key Factors |
| Durban | 0–2 days | Weekend winds, occasional equipment delays |
| Cape Town | ~1 day | Seasonal weather affecting berthing |
| Ngqura | 0–1 day | Smooth operations with minimal delays |
| PECT | 1–2 days | Minor backlog, ranging issues |
Overall, port congestion remains moderate. Durban’s Pier 2 has seen slight delay increases compared to last week. Cape Town’s CTCT continues to be lightly disrupted by weather, but truck efficiency remains acceptable. Eastern Cape terminals are performing with limited impact. Source: Various
Global Freight Rates
Weekly Container Rate Update – 10th July 2025
Drewry’s World Container Index fell 5% this week, its fourth weekly drop, as demand for US-bound cargo remains weak.
- Shanghai–Los Angeles rates dropped 8% to $2 931/40ft, though still 8% higher than nine weeks ago.
- Shanghai–New York rates fell 5% to $4 839/40ft but are 33% higher over nine weeks.
- Shanghai–Genoa rates fell 7% to $3 491/40ft, and Shanghai–Rotterdam dropped 2% to $3 384/40ft.
Drewry forecasts further rate declines ahead, driven by excess capacity, weak demand, and uncertainty over possible new US tariffs and penalties on Chinese ships.
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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