South African Ports Declare Force Majeure, Shipping Companies Have Suspended Bookings

SHANGHAI, Oct 13 (SMM) - South African exporters are facing supply chain disruptions as rail and port strikes pose major challenges to ports. Strikes have led to a backlog of cargo. Ports have declared force majeure, while shipping companies have stopped bookings.

The strike at Transnet has resulted in a flood of cargoes waiting at the terminals, with cargoes stranded on ships in the port, hindering the supply of goods. Peter Besnard, chief executive of the South African Association of Ship Operators and Agents, said there was currently a large backlog of containers at ports that had not been dealt with due to the strike. The Durban Container Terminal has suspended operations and the new terminal at eThekwini is not operating either.

Besnard said that as of Tuesday morning, six container ships, 18 bulk carriers, one multipurpose vessel, three tankers and two carriers were waiting to unload. The ships are carrying cargo from China, Europe, South America and the United States.

The South African National Transport Union (UNTU) started an indefinite strike last Thursday (October 6), while members of the South African Transport and United Workers Union (SATAWU) went on strike on October 10. "The strike could have devastating effects on South Africa's economy," South African Business Union said. 

The strike comes amid South Africa's energy crisis, which has caused power outages of up to nine hours a day.

The SAAFF made an urgent call to resolve the impasse to maintain supply chains, as strikes could be more damaging than an energy crisis.