Logistics News Update – 27th May 2025

Welcome to another Logistics News Update.

We all waited and watched as our President met with the US President, and at the end of the day, all we want to do is trade with the US without crazy tariffs, that’s the bottom line.

Business Day reports that it’s a win for both South Africa and the United States, with Finance Minister Enoch Godongwana calling it a “reset” in relations. Let’s not forget — the US remains South Africa’s second-largest trading partner. The outcome of these negotiations holds significant implications for the economy, especially for key industries like automotive manufacturing and steel. Maintaining favourable trade terms with the US is vital for economic growth and job creation.

Citrus exports have started the season on a high, with the industry recording 21% year-on-year growth, a positive sign for local producers and exporters. According to Transnet Port Terminals, most of South Africa’s citrus is grown in Limpopo, Eastern Cape, Western Cape, Mpumalanga, KwaZulu-Natal, Northern Cape, and North-West, and is mainly exported through the Durban and Port Elizabeth container terminals. Meanwhile, the Minister of Finance has confirmed a 4% increase in the General Fuel Levy. South Africans already contribute to the Road Accident Fund, carbon fuel levy, and customs and excise duties, which now make up around 33% of the fuel price. So, what does that mean in rands and cents? From 4 June, you’ll be paying an additional 16 cents per litre for petrol and 15 cents per litre for diesel.

On the ground

The South African logistics sector is poised for significant transformation following the introduction of new regulations that came into effect on 8 May 2025. These regulations, issued by the Minister of Trade, Industry and Competition in consultation with the Competition Commission, aim to facilitate collaboration among competitors, customers, and suppliers in the rail, ports, and road sectors without contravening the Competition Act. The primary objectives of these regulations are to reduce costs, improve services, and minimise losses caused by operational inefficiencies and infrastructure capacity shortages. They also seek to prevent, mitigate, and resolve bottlenecks and operational breakdowns in port and rail infrastructure, contributing to measures aimed at resolving challenges in the sector and ensuring the security of supply of goods transported through South Africa’s ports, rails, and key feeder road corridors.

The scope of the exemption provided by these regulations includes specific categories of agreements and practices that would typically be prohibited under sections 4 and 5(1) of the Competition Act. This includes exemptions for joint planning on port capacity, traffic flow coordination into ports, night operations coordination to ease peak-hour congestion, joint repair, maintenance and development of port infrastructure and facilities, and collaboration on technical studies and assessments to enhance sector efficiency.

By enabling such collaborations, the regulations aim to address systemic inefficiencies and infrastructure challenges in South Africa’s transport and logistics sectors. This move is expected to foster a more efficient and competitive logistics environment, ultimately benefiting the broader economy by ensuring the smooth and reliable movement of goods across the country. Source: Bizzcommunity.com, read the whole story here

Let’s Learn: What Is a Commercial Invoice and Why It Matters

When it comes to moving goods across borders, few documents are as important or as frequently misunderstood as the commercial invoice. Whether you are exporting coffee to Europe or importing machinery from China, this document forms the backbone of your customs declaration.

So, what is it?
A commercial invoice is a legal document between the supplier and the buyer that details the goods being sold and shipped, the terms of the sale, and the pricing. Customs authorities in both the exporting and importing countries use this document to assess duties, confirm value, and ensure regulatory compliance.

Recommendation for Exporters: Always ensure your commercial invoice aligns precisely with your packing list and Certificate of Origin. Consistency across documents reduces the risk of inspections and expedites customs clearance, particularly at congested border posts such as Lebombo or Beitbridge.

💡 Tip for Exporters: Always match your commercial invoice to your packing list and Certificate of Origin. Consistency across documents helps reduce inspection risk and speeds up customs clearance, especially at congested borders like Lebombo or Beitbridge.

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NEWS

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WEEKLY NEWS SNAPSHOT

• US importers face shipping headaches: Global shipping disruptions stemming from US tariffs and bottlenecks at major ports are hampering American companies’ ability to rush orders before Washington’s 90-day tariff détente with China ends.
• Port congestion continues to strain container shipping, says Drewry: Ports across Northern Europe remain under strain as congestion persists — a situation increasingly mirrored at major US and Chinese hubs, with an early peak season looming.
• MSC container ship sinks off Indian coast, fears of oil spill: All 24 crew were rescued from the MSC Elsa 3 after it started listing 38 nautical miles from Kochi and later capsized. The Liberian-registered MSC Elsa 3 sank on 25 May at around 0750 hrs local time on 25 May off the coast of Kochi, according to India’s Ministry of Defence.
• Transnet Secures R51 Billion Government Guarantee: The South African government has approved a R51 billion ($2.8 billion) guarantee facility for Transnet to address operational challenges, including equipment shortages and infrastructure issues. This support aims to enhance rail and port services, with R41 billion allocated for funding needs in 2025/26 and 2026/27, and R10 billion to assist in debt servicing and capital investments.
• Citrus Export Season Begins with 21% Volume Increase: Transnet Port Terminals reported a 21% year-on-year increase in citrus volumes handled in April 2025, marking a strong start to South Africa’s citrus export season. Between April and October, thousands of containers filled with citrus fruits are expected to be shipped to over 100 global destinations.
• South Africa bans Brazilian poultry imports: South Africa has banned agricultural imports of live poultry and related products from Brazil following the latest outbreak of highly pathogenic avian influenza in the South American country last week.
• Suzuki Breaks Ground on New HQ at Longlake Logistics Park: Suzuki has commenced construction of its new headquarters at Longlake Logistics Park in Johannesburg. The facility aims to enhance Suzuki’s operations and logistics capabilities within South Africa.
• Ampli Energy Launches Renewable Energy Trading Platform: Ampli Energy, a joint venture between Discovery and Sasol, has launched a renewable energy trading platform offering South African businesses month-to-month green energy solutions. The platform utilises a wheeling process to deliver renewable energy and offers cashback incentives for businesses switching to green energy. Source: – FreightNews: Reuters: Wall Street Journal

Key Highlights from Last Week’s Discussions: Source: BUSA

1. Severe Drop in Port Throughput for April

Transnet National Ports Authority (TNPA) released its April figures, and the results are deeply concerning:

• Container volumes dropped by 27% (month-on-month).
• Vehicle units fell by 33%, while total bulk cargo declined by 22%.
• The downturn is largely attributed to public holidays, wage negotiation disruptions, and structural inefficiencies in the port and rail system.
• Durban and Cape Town were hit hardest, with continued equipment breakdowns, vacant berths, and weather-related delays.
• Despite these challenges, Pier 1 Durban introduced 19 new RTGs, expected to improve performance in the coming weeks.

2. Global Container Demand Surges, but SA Loses Ground

While South Africa struggles, global shipping markets show strong signs of recovery:

• Global container throughput surged 22% month-on-month in March, driven by post-Chinese New Year exports from the Far East (+29%).
• Sub-Saharan Africa recorded strong gains: +23% imports and +14% exports.
• South Africa’s share of regional trade is shrinking—a sign of eroding competitiveness, with import share down to 24% and exports at 61%, far below 2022 highs.

3. Operational & Infrastructure Pressures Mount

The operational environment remains under pressure:

• Durban handled 84,867 TEUs last week, up 24%, but struggled due to ongoing equipment issues, cable theft, and rail outages (e.g., an 18-hour substation failure on NATCOR).
• UNTU’s looming industrial action adds further uncertainty, with unions threatening to strike if wage proposals are not revised.
• Rehabilitation of Bayhead Road is set to begin in early June—a six-month project critical to improving Durban terminal access.

4. Air Cargo Rebounds Amid Global Weakness

• OR Tambo airfreight volumes rose last week, with exports up 17%, while inbound cargo dipped 3%.
• Despite this local growth, global air cargo remains under pressure, with volumes down 1% week-on-week and rates falling to $2,34/kg.
• The ending of the US “de minimis” exemption for low-value Chinese imports is reshaping demand dynamics.

5. Border & Corridor Frustrations Escalate

• Average SA border crossing time rose to 9.6 hours (↑22%), with transit times up to 5.5 hours, costing the industry an estimated R152 million this past week.
• Lebombo border post saw truck queues stretch to 2.8 hours, and border congestion worsened due to fuel tanker convoys and poor road conditions.
• Persistent infrastructure decay, vandalism, and criminal activity continue to plague key corridors, especially on the N4 and across SADC routes.

In Summary

April’s logistics numbers highlight the fragility of South Africa’s trade infrastructure. While global shipping recovers, we risk being left behind. Structural reform, better asset reliability, and collaborative accountability are urgently needed if we hope to restore SA’s competitiveness as a regional logistics leader. Source: BUSA

Port Operations Summary: – Port Update:

SOUTH AFRICAN PORTS

Durban

• Pier 1: 1–4 days delay
• Pier 2: No delays (berthing on arrival)
• Durban Point: Up to 2 days delay
• Landside/Slot Bookings: No significant issues

Cape Town

• CTCT: 0–2 days delay
• Cause: Bad weather, infrastructure constraints, diverted global traffic

Eastern Cape

• Port Elizabeth (PECT): No delays
• Ngqura (NCT): No delays
• Note: Windy conditions, but operations remain smooth

Source: African Ports & Ships

Global Freight Rates

World Container Index –22nd May 2025

Drewry’s World Container Index (WCI) rose by 2% this week, reaching $2,276 per 40-foot container. This marks a continued upward trend, with the index now 78% below its pandemic peak of $10,377 (September 2021) but still 60% higher than the pre-pandemic average of $1,420 in 2019. The year-to-date (YTD) average stands at $2,723 per 40ft container, which is $174 lower than the 10-year average of $2,897, a figure influenced by the exceptional rates during the COVID-19 period. 

– Source: Drewrey

Disclaimer: The information provided in this newsletter is based on reliable sources and has been carefully verified. This Logistics News is distributed free of charge. If you wish to unsubscribe from our mailing list, please reply to this email with “unsubscribe” in the subject line. Please note that all content is adapted or directly quoted from its original sources. We take no responsibility for any inaccurate reporting; we are only adapting the news for you.

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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