Congestion surcharge 'not on the radar screen'

THE REINTRODUCTION of a congestion surcharge at the Port of Durban is not on the short-term planning boards. That was the assurance from Safmarine executives who told FTW in Cape Town last week that the most critical problem currently facing the industry was not so much berthing delays but rather congestion at the gate. While delays often stretch out well past the 16-hours average that was established as the acceptable benchmark when a congestion surcharge was previously in place, lines are likely to look at cost recovery through higher freight rates rather than the imposition of a surcharge for now. Congestion issues caused by global infrastructure shortfalls – both at the ports and inland – are however likely to deteriorate before they improve, Safmarine Container Lines chairman Eivind Kolding told FTW. “Container business worldwide is growing 9-10% annually, but investment in infrastructure will increase capacity by 3-4%, creating increased pressure on terminals and inland facilities – most critical in Europe, US, Asia and South Africa. “We support the initiatives by Transnet to develop infrastructure in South Africa and will do all we can to assist,” said Kolding. The AP Moller Group – Safmarine’s parent company – which is a world leader in terminal development, has made no secret of its interest in terminal operation in South Africa. But the lead times are long – at least ten years from initiation to implementation – and the reality of dealing with current congestion demands a range of initiatives which inevitably involve additional costs to the line. “We are having to speed up our vessels to make up for time lost and that equates to more fuel which impacts on the environment. “In order to sweat our assets we need to work closely with our customers to develop solutions,” he said. Carriers have adopted 24/7 operation to keep up with market growth, said Kolding. “And we believe customers need to recognise the need for flexible off-peak, non-daytime delivery acceptance to avoid becoming the ultimate bottleneck. “Without the help of our customers, structural congestion in the future cannot be prevented.”