Posted by The disruptions in the Red Sea and Suez Canal, due to Houthi attacks, have posed significant challenges and operational impacts for ports across Africa, underscoring the important role these maritime routes play in both global and regional commerce.
The early-year downturn in vessel calls at the Port of Aden in Yemen and Port Said in Egypt highlights the immediate repercussions of such disruptions. This decline not only directly impairs the throughput of these ports but also sends shockwaves through global supply chains, accentuating the Suez Canal and Red Sea routes’ strategic significance for maritime traffic, which includes the transit of energy supplies and goods.
Despite these adversities, certain African ports like Tanger-Med and Mombasa have displayed improvements in productivity, notwithstanding an overall increase in container capacity. This demonstrates that African ports through strategic planning, investment, and effective management, can navigate the challenges introduced by sudden surges in demand and disruptions in trade routes adeptly.
The World Container Port Performance Index reveals that nearly one-third of the bottom 50 ports globally are situated in Sub-Saharan Africa. This statistic illuminates an urgent necessity for advancements in port efficiency and operations to facilitate the continent’s trade sector development and its integration into international supply chains.
In South Africa, principal ports such as Durban, Cape Town, and Ngqura are faced with significant difficulties, particularly concerning congestion, inadequate facilities, and operational inefficiencies. These issues have been exacerbated by the diversion of numerous vessels around the Cape of Good Hope, instigated by Houthi attacks on the Red Sea.
This adjustment has led to an escalated demand for berthing and refueling services at South African ports, imposing additional strain on these already overstretched facilities. According to a World Bank index from 2022, Durban, alongside Cape Town and Ngqura, ranks among the worst-performing ports globally, highlighting the imperative need for improvements.
Responding to port congestion and the resulting delays in stock deliveries, South African fashion retailers have adjusted by increasing local production and seeking alternative transportation methods, including using different sea ports and air freight. Woolworths is adopting a strategy of placing smaller, more frequent orders to prevent large shipments from being delayed at the port. Additionally, the company is rerouting ships to less congested ports, like Walvis Bay in Namibia, and subsequently transporting the goods to Cape Town via truck.
These measures aim to mitigate the effects of traditional port congestion. The state-owned logistics company Transnet ascribed the backlogs at the Port of Durban and congestion at Richards Bay to various factors, including under-investment in equipment and maintenance, cautioning that the procurement of new equipment could take up to 12 to 18 months.
Despite efforts to localise production, South African fashion retailers persistently rely on imports, especially from Asia, for a segment of their products. This dependency highlights the broader challenges facing the region’s trade and logistics sectors, emphasising the importance of strategic investments and reforms to enhance port efficiency and reduce dependence on congested maritime routes.
The Supply Chain Lab 