Charter delays in SA hit bulk shippers hard
Alan peat
THE SA bulk export industry is facing an “incredible” cost of ships at the moment - with worldwide delays pushing up demurrage costs to sometimes unsustainable limits.
Panamax ships (about 70000-ton capacity) are now costing anything between US$50 000 (R325 000) and US$75 000 (R487 000) a day, and the larger Cape vessels (150 000-t plus) about US$100 000 (R650000).
“Shippers are expected to pay demurrage at these going rates,” said a major SA bulk exporter. “So that’s what you’re expected to pay - as local demurrage charges are the liability of the exporter.”
He did add that freight rates had also doubled in the last six months.
“But everyone in the world
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- regardless of whether they’re in bulk, container, or breakbulk shipping - is having to pay. So that’s easier to bear.”
But it’s when charter vessels are delayed at SA ports that it really hits the local bulk exporting community.
“It is not unusual for Cape-sized vessels to sit outside Saldanha - SA’s major iron ore exporting port - for a day or two,” said the FTW source, “mostly due to bunching of ships.”
And there, he added, is an extra demurrage cost of about R1.2-million on the shipment - enough to hit any profit on the export deal for six.
The problem is now internationally complicated by a growing delay at the bulk port network in China where ships are being delayed for anything up to two weeks, or even on occasion a month.
