Tariff increases by Durban port create dilemma for agents

Radically increased costs not catered for
KEVIN MAYHEW
IN THE generally buoyant Durban environment, tariff increases for the services of the National Ports Authority (NPA) and South African Port Operations (Sapo) remain a problem. Viking Shipping director, Naresh Maharaj, points to an average increase of 2.8% for the services of NPA and Sapo and a sudden imposition of a unit rate for imported vehicles being handled by the motor vehicle terminal against a variable meterage rate that was previously in place. “In certain instances this has radically increased our costs. And this has not been catered for as we have based our future projections when placing orders on the standard percentage increase on meterage. Now we have a non-negotiable increase to deal with that we have not covered and we cannot go back to our clients and revise our purchase prices to meet the difference for the increased landing and warehousing fees,” he explained. On the general market conditions he said Viking had expanded its services and experienced a general improvement across the board.