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Transnet strike: exporters still paying

Jun 02 2010 08:02 Francois Williams and Jean-Marie de Waal

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Cape Town - The Maersk shipping line can’t say how long it will continue to impose the extra $150 per 40ft container levy on freight shippers in South African ports.

Maersk instituted the cumulative levy on May 19 in reaction to the congestion and backlogs in ports as a result of the Transnet strike.

Fred Jacobs, Maersk director of corporate relations in Cape Town, said it could take weeks to clear the backlog.

Ships have to arrive again in the correct order, and freight stacked in the port where it is not supposed to be has to be delivered to the appropriate spots.

He says Maersk will take the requirements of its clients into consideration, and focus on freight it considers time-sensitive. The availability of all resources in the logistics chain also has to be taken into account.

Jacobs says the strike forced Maersk to miss certain ship departure times, add extra shifts to certain routes, and organise re-shipment of freight, incurring additional storage costs.

The reorganising of containers and shipping activities has been seriously disrupted since May 10, when the strike began.

The cost to Maersk could amount to millions per week, Jacobs reckoned.

Anton Rabe, chairperson of Fruit South Africa, which represents fruit exporters, has said the strike may have cost shipping lines R600m.

If this were to be recovered from the deciduous fruit industry alone, it would represent more than last year's net farming income.

In a letter to Public Enterprises Minister Barbara Hogan, the fruit industry said it would encourage fellow exporters to send the accounts for the extra container levy the shipping lines are charging them to Transnet for payment.

On Tuesday, Transnet acting CEO Chris Wells told journalists in parliament that Transnet could not be held contractually liable for the damage export activities, in particular, had suffered because of the strike.

Wells said that Transnet had not yet determined the rand value of the strike, but it could take three months to make up the backlog, particularly in terms of container transport, which had been worst affected. He said Transnet had instituted a plan of military proportions to wipe out the backlog.

- Sake24.com

For business news in Afrikaans, go to www.sake24.com.

 
 
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