Increase in shipping costs will force SA to dig deeper into its reserves

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Containers sit on the tarmac at Felixstowe Port in Felixstowe, UK, this week. The port, which handles 36% of the country’s container traffic, cited the truck driver shortage and the busy pre-Christmas period for a backlog that has containers piling up. Shipping company Maersk began rerouting some of its ships from the port because they were encountering  multiday delays in unloading containers. Photo: Getty Images
Containers sit on the tarmac at Felixstowe Port in Felixstowe, UK, this week. The port, which handles 36% of the country’s container traffic, cited the truck driver shortage and the busy pre-Christmas period for a backlog that has containers piling up. Shipping company Maersk began rerouting some of its ships from the port because they were encountering multiday delays in unloading containers. Photo: Getty Images

BUSINESS

He was referring to the Drewry World Container Index of Shipping Rates, which shows that, in the last week of August, there was a 351% increase in the cost of a 40ft (about 12m) container, compared with the same period last year.

This was the result of the global disruption of supply chains due to Covid-19. At major ports in the EU, the UK and the US, there is an accumulation of cargo containers on ships and empty cargo containers standing everywhere. This, in turn, creates a huge shortage of cargo containers for exports.

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