SA imports and exports plunge in first quarter

Danish shipping giant’s warning highlights pressure caused by congestion and underperforming ports

Danish shipping and logistics giant Maersk has warned that vessels will be delayed on SA’s south coast, which has been battered by inclement weather in the past few days.

The company on Monday told its clients that weather conditions on the coastline will delay the arrival of vessels, adding more woes to the congestion that has become a nearly permanent feature at the country’s ports.

Kindly note that extreme weather conditions, including strong winds, high waves and heavy rain, are forecast along the SA coastline over the next few days, especially between Cape Town and Port Elizabeth,” the shipping major said.

“This will impact vessel movement and operations. The worst impact is expected in Port Elizabeth. Vessels are expected to seek shelter/alter their course to avoid the impacted areas. Please expect delays over the next few days.”

The SA Weather Service said it expected a mid-latitude cyclone to cause low atmospheric pressure and strong winds, which would result in large waves and a storm surge affecting the west and southeast coasts on Monday.

The expected delays on the south coast are likely to affect the broader SA economy.

The latest Absa purchasing managers’ index (PMI) showed imports are still being delayed as SA continues to battle port congestion. Due to supply and delivery issues, the index measuring supply performance barely improved in June, rising to 56.1 from May’s 55.4. Absa said port issues were likely to remain a concern in coming months.

While the overall PMI rose 1.9 points to 45.7 in June from 43.8 in May, it remained below the 50-point mark for the second month running.

The PMI report states: “Supplier deliveries are worsening, with the index increasing relative to May (this is indicative of slower delivery times). Port issues are likely to have remained an issue. For example, at the Durban Container Terminal, only seven of the 16 ship-to-shore cranes were operating, and about 55 straddle carriers were available compared with the planned 67.”