Importers face a double port cost whammy. In the first they have to contend with some of the highest port tariffs in the world. According to the Port Regulator’s Global Pricing Comparator Study for 208/19, South African cargo owners using containers are paying 271% more for port services than a global sample average of 23 harbours from around the world. Things have improved, however. In 2012/2013 when the benchmark study was first done the premium was 874%. For bulk commodities, the port charges are below the global averages, which indicates that the manufacturing and retail sectors are still crosssubsidising the export of commodities to which no value has been added. The second whammy comes from the depreciation in the value of the rand. While shipping companies benefit because South African port fees are rand denominated and they charge in dollars, the benefit is not passed on to the importers, who are paying container shipping fees in dollars. These high charges negate many of the geographic benefits South Africa offers to suppliers of value-added.
INSERT: SA container shippers are paying 271% more for port services than a global sample average of 23 harbours. – Study