INDUSTRY NEWS
Impacts of COVID-19 on Ports & Harbours
When the COVID-19 pandemic first broke out in the port city of Wuhan, China, in December 2019 few could have predicted the massive impact it would have on the world. With global lockdowns affecting almost every industry on earth, the global freight and shipping industry has been one of the hardest hit. Impacts Of The COVID-19 Pandemic On Ports & Harbours As the world economy slowed, global shipping markets took a big knock, with much lower demand for goods in China affecting everything from container ships to oil tankers. The impact has been felt beyond just ports and harbours, with the trucking industry, logistics and shipping businesses all experiencing a drop in demand. Container ships around the world have been sitting empty at container terminals, waiting to resume their normal routes and cargo loads.
global financial crisis. The South African landscape South Africa’s initial lockdown in March and April 2020 came with several restrictions that impacted South African shipping and ports. Cruise ships were banned from docking and crew changes were also barred. The eight South African seaports all remained open, but goods coming in from high-risk countries had to be sanitized before leaving the port. Terminal operations were therefore scaled down dramatically with non-essential cargo being restricted heavily. It is estimated that ports were running at approximately 50% to 60% capacity during this time.
Harbour cranes have had a massive decline in work, waiting for shipping loads to return to normal.
Due to restrictions placed on business operations at ports, some harbours experienced backlogs.
The world has not seen a reduction in shipping like this since the 2008
Cape Town port, for example, struggled with a backlog of ships,
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Lifting Africa - Mar/Apr 2021
leading to vessels waiting outside of port for weeks at a time before getting an opportunity to berth. Once berthed, there was a shortage of cranes and crane operators working at the port and significant delays were experienced. This led to shipping lines either cancelling trips to Cape Town or charging a congestion surcharge. Post the lockdown ends, more goods started flowing in and out of the country, but demand for both imports and exports has decreased significantly. Warehouses and distribution centres have seen a fall in demand for consumer products. The wine industry suffered job losses as a result of a ban on wine exports over the lockdown period. There has been absolute turmoil across all industries. The longerterm impact of the Covid-19 pandemic is yet to be experienced, but this sector has undoubtedly
