Industry fears congestion surcharge as delays persist

Congestion at the Port of
Durban and the subsequent
knock-on effect on other
ports remains a concern
despite Durban Container
Terminal’s (DCT) adoption
of a multi-pronged
approach to alleviate the
situation.
While shippers around
the country are reeling
from the effects of the
congestion and the
subsequent delays
and increased
costs, Cape Town
shippers are still
finding vessels
being rerouted
or bypassing the
port altogether
as shipping lines
attempt to make up
time lost waiting in
Durban.
With the lack
of equipment
both land and
waterside being
blamed for the
fiasco, Transnet
Port Terminals
has told
stakeholders
that a maintenance team
has been working in
overdrive to ensure there
is increased availability of
equipment in Durban. But
industry says the situation
remains dire.
According to Terry Gale,
chairman of the Exporters’
Club Western Cape, the
impact of interventions has
yet to be felt.
“The fact is that
Durban affects the
entire country’s
port operations,”
he said. “And
the situation
is definitely
not improving
as yet.”
Mike
Walwyn,
chairman of the
Cape’s Port Liaison
Forum (PLF), agreed
saying Durban remained
under severe pressure.
“Vessels are waiting
outside, queues of trucks
are waiting to enter the
terminal, and vessels are
now bypassing Durban in
an attempt to maintain
schedule integrity,” he said.
“We are hearing of vessels
being delayed by up to five
days in Durban at present.
What is interesting and
concerning is that in Dakar
they are experiencing fiveday
delays and as a result
MSC has just announced
a $250/TEU congestion
surcharge
there.”
He said
there were
questions
over how
long it would
take before
something
like that
happened in
Durban.
The
last time
shipping lines introduced
a surcharge in Durban it
was withdrawn after a huge
local outcry.
“Perhaps we won’t always
be so lucky!” said Walwyn.
A shipping line source
agreed, saying the entire
situation in Durban at
present reminded him of
the nineties when similar
circumstances had arisen.
Repeated requests were
made to the authorities to
rectify a drastic situation
and purchase more
equipment. “Basically that
fell on deaf ears and in
desperation lines sought
compensation through the
compilation of a schedule of
expenses incurred waiting
at anchorage
– as is the
case now for
5 to 6 days
at a time –
but this was
f latly rejected
by the
authorities
resulting in a
penalty being
prescribed.
The same as
now in order
to recoup some of their
losses. I would say the wheel
has once again turned 360
degrees.”
He said the multipronged
approach to
alleviate congestion was by
all accounts too little, too
late.
“This is an uphill battle
that looks likely to worsen
as we near Christmas and
more and more vessels
arrive.”

INSERT & CAPTION
We are hearing of
vessels being delayed
by up to five days in
Durban at present.
– Mike Walwyn