South African traders have expressed unanimous condemnation of the cost to operations that importers and exporters had to absorb during December last year when ongoing congestion at the country’s most important port wreaked havoc on supply chain efficiencies.
This has been revealed by a Freight News survey titled, Industry call to action: navigating disruption at Transnet together.
The survey looked at various aspects of the cargo industry, such as the “impact on operations” of the state-owned logistics utility, asking: “How have the recent troubles at Transnet affected your day-to-day operations? Please specify any disruptions in cargo transport via ports and rail systems.”
The survey also delved into the financial implications of Transnet’s failure to facilitate trade adequately, and explored “adaptation strategies, communication and support, and future outlook and preparedness”.
Delay-related costs, frustration, inconvenience, job losses, and the exodus of skills to neighbouring ports that are now competing with ports such as Durban are some of the overarching responses of the survey’s respondents.
Some of the comments received are telling of the impact slowed throughput at Durban had on supply chain operators.
One cargo manager said: “An example for freight forwarders is where we give our client guidance on loadings, and then port operations do a U-turn; we foot the bill for standing time, overtime, etc.”
Another respondent commented that a delayed consignment of fashion goods had cost the local haute couture industry an entire season of lost potential.
An estimated 24% increase in costs underscored the impact of the congestion at South Africa’s ports on imports and exports, another said.
- Read the full report in our Freight Features edition on “Exports”.
