Congestion surcharge ‘unlikely’ for now

THE SPECTRE of another congestion surcharge at the port of Durban is not a reality for now but the next few months will be decisive, a test for Transnet Port Terminals, says Alex de Bruyn, trade executive for Safmarine Southern Africa. Joining Maersk Line SA MD David Williams and Fred Jacobs, Safmarine executive for corporate affairs and communication in Southern Africa in a discussion on South Africa’s largest port, De Bruyn says the two carriers are in healthy ongoing discussions with Transnet Port Terminals over a variety of issues. “With Durban’s Pier 1 coming on stream, nobody wants a congestion surcharge and TPT are saying there should not be any hiccups.” Congestion generally hits Durban between July and November which, in De Bruyn’s opinion, will be the “real test” for TPT to deliver on its assurances, now that port investments are in place. Williams alludes to the “floating bunker adjustmentfactor (BAF)”, introduced earlier this year by Maersk Line and Safmarine, saying he believes it is a fair way of passing on costs to the line’s customers. Jacobs concurs that this process is “very transparent, in that customers are clearly aware of the impact of rising oil prices.” That the Danish shipping group was working on a bunker adjustment formula emerged last November during the first official visit to South Africa of Eivind Kolding, CEO of Maersk Line and of Safmarine. Kolding made the point that margins in container shipping were not big enough for the lines to shoulder a substantial increase in fuel costs, and there certainly seems to be no let-up so far this year.