Shell declares force majeure on Jhb fuel

Oct 05 2012 09:42
Johannesburg - Shell has declared force majeure on fuel deliveries in Gauteng province, which includes Johannesburg and Pretoria, due to a two-week strike by more than 20 000 truck drivers, the company said on Friday.

“There is fuel available across the country so the issue is not fuel supply but the challenge is delivering it safely to our retail sites,” the company said in an emailed response to questions.

Force majeure means that due to unforeseeable circumstances, a company may not be able to fulfil its obligations, so Shell is covering itself should delivery of fuel not occur.

The measure allows the company and its customers to break contracts due to situations beyond their control and its invocation is a sign of the truckers’ strike starting to bite the economy, which is already under strain from a wave of wildcat walkouts by platinum, gold and iron ore miners.

Near the “platinum belt” city of Rustenburg, 120km northwest of Johannesburg, hundreds of protesters barricaded streets with rocks and burning tyres on Friday close to a mine belonging to top producer Anglo Platinum [JSE:AMS] (Amplats).

The unscheduled strikes also spread to the manufacturing sector for the first time this week, with workers at Toyota’s Durban car plant downing tools on Monday to demand higher pay. The strike was resolved on Thursday, with unions saying workers had received a 5.4% pay hike.

“As far as I know the guys have been pitching up for work and production has restarted,” Toyota SA spokesperson Leo Kok said.

* Follow Fin24 on TwitterFacebookGoogle+ and Pinterest.  

shell  |  petrol  |  transport strike



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The SARB’s Monetary Policy Committee will decide on the next move in interest rates tomorrow will they?

Previous results · Suggest a vote