SOUTH AFRICAN PORT UPDATE

After the strong recovery last week, throughput volumes were back to the longer-term average. 8211 containers were handled per day, down from 9589 containers last week. Port operations were primarily impacted by inclement weather conditions, equipment breakdowns and shortages. This week, operational performance improved somewhat in Cape Town as minimal delays were reported. Equipment shortages and power outages prevented optimal performance at the Port of Durban. Adverse weather conditions and network issues resulted in operational delays at our Eastern Cape Ports.

MAY AIR CARGO STATISTICS

• Johannesburg saw a monthly increase of 5% but an annual decrease of 18%.
• Cape Town experienced a monthly increase of 19% but an annual decrease of 33%.
• Durban reported a monthly increase of 7% but an annual decrease of 17%.

GLOBAL TRENDS

Global Container Port Throughput Set to Shatter Records in 2024

Global container port throughput is projected to hit 947 million TEU in 2024, with a growth rate of 4.7%. This surge has escalated port congestion to an 18-month high, particularly at major Asian ports like Singapore, Tanjung Pelepas, and Colombo. Colombo's congestion has directly impacted India, causing higher freight rates, equipment shortages, and longer transit times.

Robust Container Market

Despite concerns about a potential downturn due to peace in the Middle East, the container market remains strong. Chinese freight futures and rate indices show strong recovery, with new Asia-Europe shipping routes not lowering freight rates. Ongoing schedule disruptions and planned blank sailings contribute to rising rates. German port congestion and recent strikes further delay cargo movement.

Stable Air Cargo Rates

Air cargo rates remain firm during a traditionally quiet period, driven by strong demand and high spot rates from Asian and Middle Eastern origins. Airlines' profitability stabilized in Q1 2024 compared to 2023.