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Industry Update: Port and Rail Challenges- Week 34

Heneways Editorial Team

2024-08-22

Reading time: 3 minutes

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SOUTH AFRICAN PORTS AND CONTAINER FREIGHT STATIONS

Hazardous cargo acceptance on exports proves challenging as carriers prioritize loading alternative cargo types due to ongoing reefer season. Please expect delays in obtaining hazardous approval from carriers.

DURBAN

The port has experienced low wind speeds during the week.

Pier 1: 9 days delay

Pier 2: 9-12 days delay

Durban Point: 3 days delay

Appointment slots are constrained due to high volume of containers moving through Durban terminals. Our transport team at SALL are working closely with hauliers and TPT to move containers as efficiently as possible.

THC INCREASES

Due to the current conditions at South African ports, container vessels will not be accommodated at the main terminals unless they fall under TPT’s CTOC arrangement. TPT’s CTOC arrangement includes a premium on Terminal Handling Charges (THC). As THC has always been passed on to customers on a cost recovery basis, these charges will be adjusted accordingly.

RAIL STIKE BEGINS

With the upcoming CN and CPKC Rail lockout or strike set for August 22nd, Eastbound and Westbound rail cargo will face significant disruptions, particularly for hazardous and temperature-controlled goods, which both rail operators have already started banning. The lockout follows a breakdown in negotiations between the rail operators and the Teamsters Canada Rail Conference (TCRC), leading to a shutdown and potential work stoppage during the peak shipping period.

As a result, Canadian ports are likely to see increased yard congestion and rail delays, with more containerships expected to divert to U.S. ports. Despite attempts by Canada’s government to encourage a resolution, no progress has been made, and the union has rejected binding arbitration. We will continue to work closely with our affected clients to provide them with alternate solutions during this challenging period.