South African ports face severe congestion issue, inventory backlog unlikely to be dealt with until February/March 2024

On November 29, a number of logistics companies warned that the congestion problem at South African ports is increasing, which may lead to delivery delays and inventory shortages in the coming months. At the same time, due to highway traffic congestion, transportation surcharges that South African companies need to pay are expected to increase in December, which may put pressure on South African commodity prices.

The South African Association of Freight Forwarders (SAAFF) said that to avoid congestion and delays at Cape Town ports, container ships have been choosing to dock at Port Elizabeth in Gokebeha and Nqula (Kuga). This has caused a major traffic jam along the Eastern Cape coastline, leaving some 46,000 containers stranded outside the two ports. In addition, according to local media reports, as of last Friday, 79 ships and 61,968 containers were still stranded outside the port of Durban. As a result, more than 100,000 containers carrying approximately R7 billion worth of cargo are stranded outside South African ports.

All these developments will have a detrimental impact on the South African economy in the coming Christmas, according to the report. Many retailers are anxiously awaiting Christmas stock, which is now stuck in containers at ports or at sea. Transnet Port Operations said the backlog is not expected to be dealt with until February/March 2024.