As the strike at the railway and port has brought great challenges to the port, South African exporters are facing the interruption of the supply chain. The strike has led to a backlog of goods. The port has declared force majeure and the shipping company has stopped booking space!

Trucks lined up on Bayhead Road to enter Durban Port, which was congested due to the strike

The strike of Transnet caused a large number of goods to wait at the wharf, and the goods were stranded on the ships at the port, hindering the supply of goods before the festival. Peter Besnard, CEO of South African Association of Ship Operators and Agents, said that there was a large backlog of containers at the port, which had not been handled due to the strike. Durban container terminal has been suspended from operation, while eThekwini's new terminal has not been operated.

Besnard said that as of Tuesday morning, there were 6 container ships, 18 bulk carriers, 1 multi-purpose ship, 3 oil tankers and 2 transport ships waiting for unloading. These ships are loaded with cargo from China, Europe, South America and the United States.

The National Transport Union of South Africa (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 a devastating impact on South Africa's economy." South African Business Union said.

The strike took place at the time of the energy crisis in South Africa, which has caused power outages of up to nine hours a day.

According to the data of the South African Association of Freight Forwarders (SAAFF), logistics delays cause economic losses of 100 million to 1 billion rand (548 million dollars) per day, but the total economic cost "may reach billions of rand per day".

SAAFF also pointed out that "the impact of a one-day port strike will lead to at least 10 days of recovery in operation". The association also "urgently calls for resolving the impasse to maintain the supply chain, as strikes may be more destructive than the energy crisis". The shipping company has informed the customer that it is looking for alternative solutions. Hapag Lloyd said that several terminals are still unable to operate. In addition, Transnet Port has officially declared force majeure. The strike is expected to have an impact on local operations. With this in mind, Hebrot provides an additional 7 days of free demurrage for all types of containers. Maersk announced its service adjustment plan on the 11th and suspended the booking of dry containers at all South African ports. At the same time, it warned that the import "may face a long delay", which will exempt the export fees that need to change the destination. This situation, in particular, makes exporters of perishable goods in serious trouble. Shippers are now looking for alternative models. Lynee du Toit, CEO of Air Charter Service South Africa, said that in the past two days, exporters of perishables have increased their requirements for charter flights. It added that due to the limited air transport capacity, this will lead to higher freight rates.

The normal charter fee of 500000 US dollars rose to 1 million US dollars during the epidemic period, and the fruit merchants could not afford it at all. In the face of the current situation of critical price rise, it is expected that there will be a period of interruption. In 2010, Transnet faced a 17 day strike, which took about 7 months to recover. Transnet said on the morning of the 12th, "I hope the trade union will make a formal statement so that the company can evaluate its feasibility, take into account the affordability and sustainability requirements of the enterprise, and take into account the needs of employees. The company will still be committed to solving problems quickly, so that the business can focus on sustainable development and operational improvement."