Red Sea crisis: surge in number of ships at Durban's port

 The port of Durban, the main container port on the South African coastline, is struggling with a surge in ships calling due to mounting tensions in the Red Sea.

The port of Durban in South Africa is facing capacity challenges as shipping companies take detours around Africa's southernmost tip.

Major container shipping companies temporarily halted all transits through the Red Sea, a vital waterway for global trade, on Dec. 15 after Yemen's Houthis claimed a drone attack on an Israel-bound cargo ship in the region.

The group has vowed to prevent what it called "Israeli-linked ships" from passing through the Red Sea until the ongoing war on the Palestinian enclave of the Gaza Strip ends.

Increased shipping costs

As a result of surge in tensions, container ships have detoured around the Cape of Good Hope at the southern tip of Africa and around South Africa's coastline, which would extend shipping period and lead to increased shipping costs.

"The logistical cost is quite substantial. It's quite huge if you have to look at it in terms of cost," said Ian Rosario, operations director of Mediterranean Shipping Company (MSC) South Africa.

"Besides, of course, there is an additional demand. The capacity has depleted, very soon. You'll see that there will be a lack of equipment, there will be no containers available to be supplied to the market. Already in the last two weeks I think the freight trades have skyrocketed."

The number of ships calling at the port of Durban for refueling and supplies has surged as a result of the detour.

Rosario said the congestion has extended waiting periods for container ships to enter the port.

"We can't even accommodate our own vessels that are given the sea talk status because I mean the waiting period -- the congestion Durban [is facing] -- is humongous. It's quite colossal. It's the waiting period we're looking at about 20 days at this point in time," he said.

Impact on consumers

Meanwhile, concerns are rising that the growing shipping costs will contribute to further increases in commodity prices.

"The ongoing conflict at the Red Sea means that shipping lines are going to be disturbed and as they are disturbed, it means basically that the supply of raw materials could also be disrupted," said Lumkile Mondi, senior lecturer with the School of Economics and Finance at the University of the Witwatersrand, Johannesburg.

"That brings in about 14 days at sea, and therefore pushes price of shipping lines very very high and price of goods and services, which is not good for us as consumers."

Source: https://www.africanews.com/2024/01/26/red-sea-crisis-surge-in-number-of-ships-at-durbans-port/