OWN CORRESPONDENT, Johannesburg | Sunday 5.00pm
HEAVY congestion at South African ports – coupled with alleged cartel behaviour by shipping companies – is putting importers and exporters in a stranglehold which could result in pressure on the country’s foreign reserves and balance of trade. The Business Times reports on Sunday that 12 of the shipping lines which transport goods in and out of the country this week issued Portnet with an ultimatum to resolve the congestion. The problem began last month after the implementation of Portnet’s new computer system, Cosmos, at Durban harbour. Poor implementation and staff difficulties in using the system have resulted in containers going missing or sent to the wrong destinations. Export containers have been returned to Johannesburg after Portnet computers incorrectly labelled them with import status, Business Times reports. In addition, container ships which normally have a 24 to 48 hour turnaround in harbours have been delayed by a week – and sometimes ten days. The report says that the congestion has forced ships to divert to other harbours, and freight agents, importers and exporters are being burdened with the costs of delayed payment on delivery, re-routing and amendments to documentation. Affected parties are worried about the potential for similar problems when Cosmos is adopted at other ports. To add to the woes of importers and exporters, the shipping lines appear to be operating cartels without exemption from the competition authorities, particularly on the South Africa/Far East line. In June, the shipping companies servicing this line announced they had agreed jointly to raise rates, in some cases by well over 40% – a cost which has to be absorbed by importers and exporters. Competition Board officials said this week many complaints have been received in which shipping companies were accused of colluding on pricing and running cartels.