The Transnet industrial action that was initiated by the unions on Monday 10th May 2010 in all South African ports and railways is still ongoing. This industrial action has further significant impact on the services and costs incurred by shipping lines that have had to divert their vessels or lay outside ports unable to berth or load export cargo.

Safmarine and Maersk Line have decided to implement a Congestion Recovery Surcharge of USD 75 per TEU which will contribute towards the costs incurred as a consequence of the industrial action. This surcharge will be applicable to all containers loaded and discharged in South African ports. Other shipping lines are following suit and have been sending us information as to similar surcharges.

With regard to import containers any container "gated in" at foreign origins destined for South Africa will incur this charge effective 00h01 on 19th May 2010. With regard to export containers the charge will become effective on any containers "gated in" at local terminals (including City Deep) from 00h01 on 19th May 2010.
The congestion recovery surcharge will be for the account of the freight payer but will not be levied against foreign transhipments in South African ports.

The shipping lines will continue to monitor the expected recovery and work with all stakeholders in order to minimise the impact. Further details will follow with regards to the duration and suspension of this charge.