Transnet is currently facing significant scrutiny following the latest Container Port Performance Index (CPPI), which ranked South Africa’s ports among the lowest of 405 evaluated worldwide.
The operational efficiency of these ports has been further compromised by adverse weather conditions. The recent Cargo Movement Update (CMU), prepared by Business Unity South Africa and the South African Association of Freight Forwarders, reported a substantial week-on-week decline in container handling capacity, dropping from 8,244 to 5,737 containers per day.
This 30.3% decrease in throughput is primarily attributed to extreme weather and equipment breakdowns, severely disrupting port operations.
The Port of Durban, one of South Africa’s key ports, has faced closures to incoming traffic due to inclement weather.
Similarly, Eastern Cape ports have struggled with operational challenges stemming from strong winds and vessel ranging, further diminishing overall port efficiency.
These disruptions come at a time when the global sea freight industry is grappling with intensified capacity shortages.
The container shipping market has been particularly affected, with notable incidents such as Maersk halting a trans-Pacific service just eight weeks after its launch, and nearly 50% of westbound Asia-Europe sailings failing to meet their scheduled departure times due to ongoing port congestion in Southeast Asian hubs.
Amid these challenges, global freight rates have risen for the ninth consecutive week, with a 13% increase recorded last week alone.
Since the end of March, the Shanghai Containerized Freight Index has surged by 76%, showing no signs of decline in the near future.
The containership charter market remains robust as well, with rates increasing by 10% last week, further complicating the global supply chain landscape.
In light of these multifaceted challenges, public sector ocean freight executives in South Africa and beyond have criticized the World Bank’s latest CPPI.
A logistics principal, who requested anonymity, noted that the CPPI does not provide a fair comparison, as it aggregates ports with vastly different sizes and operational dynamics.
This critique raises concerns about the validity and accuracy of the World Bank’s metrics, particularly given the institution’s disclaimer that it cannot guarantee the accuracy of its research.
This criticism underscores a broader issue within the global port performance assessment framework. The diverse conditions and operational contexts of different ports make it challenging to create a standardized measure that accurately reflects performance and efficiency.
This disparity is evident in South African ports, which are facing unique challenges not necessarily comparable to those in other regions.
The current situation highlights the need for more nuanced and context-specific evaluations of port performance.
While the CPPI serves as a useful benchmark, it should be complemented by other assessments that consider the specific conditions and challenges faced by individual ports.
This approach would provide a more accurate and comprehensive understanding of port performance, helping to identify areas for improvement and inform targeted interventions.
The CPPI ranking has underscored the serious difficulties confronting South African ports, exacerbated by adverse weather and equipment failures.
Additionally, the broader issues plaguing the global maritime freight industry, such as declining capacity and rising freight rates, complicate the situation`.
Critics of the CPPI’s methodology emphasize the necessity for more sophisticated evaluations that account for the distinct circumstances of various ports.
Addressing these issues will require a coordinated effort from all players in the supply chain sector to ensure effective and reliable port operations.
