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.”