Rand weakness affects THC comparison

A source who preferred to remain anonymous told FTW that at straight THC level TPT was cheaper than global ports and this was all down to comparison with other ports at US$ level due to the rand’s weakness. “For example ZAR THC is US$108 per 20ft and US$160 per 40ft at today’s exchange. This would compare with Chinese ports at US$118/166 equivalent or Rotterdam at US$246 per box (they do not have 20ft and 40ft rates). Just some examples,” he said. His sentiments on poor productivity mirror those of our other commentators. “Lower productivity – some 40-50% lower than China/ Europe ports – means that we are paying more due to longer port time and therefore indirectly through higher bunker consumption, provision of extra vessels etc.” Then there’s the issue of the lower Durban draught, which is a further hidden cost or rather revenue reduction, he added. “For example, I am working to an allocation of 9 tonnes per slot westbound from Asia right now due to holding the vessel to lower draught ie, slots the same but to reach full allocation means I have to reduce cargo mix. The same applies to everyone else so everyone is fighting for light cargo.”