Gauteng 40-foot ‘jam-up’ under control

Despite industry assertions
of a big jam-up of 40-foot
(12-metre) containers on the
Reef, shipping lines told FTW
they were able to have them
returned to the coast – but at
a cost.
The presence of a large
number of 40-foots is rather
inevitable, according to
Andrew Thomas, CE of
Ocean Africa Container Line
(OACL) – with the incoming
quantities of fast-moving
consumer goods (FMCG).
The build-up of these
units in Gauteng, he added,
is because of a lack of rail
capacity to return the empty
big boxes to the coast. For
the 20-foots (6-m), the
pressure is not so great, with
fewer imports coming in in
this size, and SA exports –
particularly commodities
– moving them to the Port of
Durban for shipping out.
Thomas also felt that
the high price of moving
the empty 40-foots by road
might play a role in the
accumulation on the Reef.
Iain McIntosh, GM sales
and marketing for Mitsui
OSK Line (MOL), agreed
with the Thomas suggestion
that the peak season FMCGs
were causing a build-up of
40fts in Gauteng – which is
the national hub for most of
SA’s import and export boxes.
The lack of rail capacity
he explained by pointing out
that, in the peak season rush
to get goods into stock, most
importers use road because
it is faster and more direct
than rail.
“Rail, therefore, only
puts on the capacity for
what is available coming
in,” McIntosh said, “and is
unlikely to increase outgoing
capacity just to cover empty
boxes travelling to Durban at
lower prices than full boxes.”
He added, however, that his
line was able to get its boxes
back to the coast either by
cabotage, or by paying more
for road transport for the
empties required.
Ron Frick, MD of Deutsche
Afrika-Linien (DAL),
expressed no worries about
a 40-ft jam-up. “We’ve
managed to evacuate our
boxes,” he said, “but, of
course, we don’t have the
volumes the big guys move.”
Glenn Delve, marketing
director of Mediterranean
Shipping Company (MSC),
was also happy with the
situation.
“We don’t have too much
of a build-up on the Reef,”
he told FTW. “Not a jam-up,
nothing dramatic.
“Trade out of Gauteng,
although not up to the levels
of 2008, is still buoyant. So
we have quite a demand for
40fts for exports up there.
Anyway, it’s just the normal
peaks and valleys of trade,
so we find a way round any
problems like this.”