While Maersk Line announced
last week it had withdrawn
implementation of its import
(CFD) and export (CFO)
congestion fees at the Port of
Durban (effective Monday 6
November), two smaller lines
represented in South Africa
told FTW off the record that
they were mulling a “surcharge
of some kind” to make up for
the massive costs incurred due
to infrastructure damage to
yard equipment and cranes
following the severe storm last
month.
A spokesperson for Maersk
Line said that because some
of the infrastructural damage
would take a long time to
repair, it was expected the
port would continue to face
congestion. He did not provide
an explanation for the dropping
of the congestion fees but the
initial notice issued by Maersk
said the shipping major was
“continuously reviewing the
situation in the port and upon
return to normal
operations
we will
eliminate
the application of this charge”.
Molatwane Likhethe,
spokesperson for Transnet,
confirmed that 100% of
marine operations at the Port
of Durban had resumed and
the state-owned entity had
made “substantial progress” in
getting most of its operations
back online.
“All affected divisions have
reported damage to their
infrastructure, which included
cargo handling equipment,
buildings, vehicles, railway
lines and quay walls. Thorough
assessments
are still
ongoing;
Transnet
would like
to assure all
its affected
stakeholders
that
everything is
being done
to bring all
operations
back to
normality
as soon as
possible,”
Likhete said.
But, as one shipping line
MD pointed out, vessels
were still waiting in port
for up to two weeks and
transhipments were required
which disrupted the weekly
services to and from Durban.
“If we want to maintain
our regular services, we
have to deploy extra vessels
with accompanying
additional bunker
costs to mitigate
expected delays
and evacuate
empty boxes
(which cannot
be evacuated
currently due
to port capacity
constraints),” he
explained.
He told FTW that the line
had not made a decision yet
on whether it would load
its charges but said that it
was considering it as it had
incurred major revenue losses
and additional costs. “We also
need to decide what to call
these charges; they may not be
classified as export or import
congestion charges,” he said.
Glenn Delve, national
commercial director of the
Mediterranean Shipping
Company (MSC), told FTW
that the world’s second-largest
container line
had taken a
decision not
to introduce
congestion
charges. “There
has been
some progress
in getting
infrastructure
up to scratch
at the port and
we are focused
on ensuring as
little disruption
to our clients
as possible.
This includes
not burdening them with
additional charges,” he said.
Shippers have expressed
anger and frustration at the
ongoing disruption – which
was a problem even before
the storm hit. They are the
unwilling pawns in the game
– putting their businesses and
reputations on the line as cargo
is delayed.
Terry Gale, chairman of the
Exporters’ Club Western Cape,
told FTW Online recently
that the Durban situation was
having a “disastrous effect”.
In Cape Town, he said,
export boxes were stacking
up fast as scheduling was
uncertain.
“The situation is untenable,”
he said.
INSERT & CAPTION
We are focused on
ensuring as little
disruption to our
clients as possible —
including not burdening
them with additional
charges.
– Glenn Delve
