Demurrage costs mount up as RB queues persist

Richards Bay Port stakeholders have raised concern about the rising costs caused by delays in servicing vessels – the queue outside the harbour grew to 31 vessels on Monday with ships waiting for weeks in some cases. Sources who spoke to FTW on condition of anonymity said the delays were running as long as 16 to 20 days for some vessels although the port was working to improve the situation – but there was concern about the high cost of demurrage which was impacting shippers and importers. “Shippers are facing huge bills for demurrage caused by berthing delays. We are under huge pressure,” one source said. Importers were worried about expiring letters of credit and there was concern that export business could shift away from SA ports in search of more efficient operations, he added. Another source attributed the delays to poor weather conditions with winds stronger than 60 knots in recent weeks, adding that the helicopter which serviced both Richards Bay and Durban ports, carrying marine pilots to vessels, had been out of commission since before December 1, exacerbating the situation. “The helicopter is expensive but it is a way of getting pilots on without encountering the dangers of the boat. The world over pilot boats are still used in a more protected environment; it’s not like here where there are threeor four-metre swells and the pilot has to hang on a ladder swaying to and fro,” he said. “As soon as we get wind beyond about 60 knots you find all the gantries stop and then the ships sit – and  the longer they sit the more they delay other vessels at anchorage. And there are more vessels arriving daily.”  However, he said port stakeholders were hopeful that the delays would be addressed. “We are hopeful that things will pan out and that Durban and Richards Bay ports be will be where they want them to be and where we know they can be,” he said. Richards Bay harbour master Sabelo Mdlalose confirmed that 31 vessels were queueing outside the port as at Monday January 29 but he did not indicate how long it would take to clear the backlog.  “The Port of Richards Bay did not experience any marine operations delays. The anchorage waiting time on 1st December was a result of early vessel arrivals and adverse weather conditions experienced in November 2017,” he said. “TNPA has engaged all terminals to address the vessel queue outside the port. Terminals have advised that customers are trying to export as much as possible due to the favourable market price of bulk commodities,” Mdlalose said. “We are working closely with the terminals to ensure efficient berth planning on their part. This, coupled with sustained marine service performance, will go some way towards easing the queue." Mdlalose said the port’s turnaround time target was 80hrs but this varied depending on whether it was peak season with high market demand or off peak season with low demand. “During peak season it can reach 188hrs and during off peak it was as low as 47hrs,” Mdlalose said.