CONTAINER lines are facing further disruption from industrial action after workers at South Africa's state-owned terminal operator and logistics operator have gone on strike.

Transnet is due to meet unions and the Commission for Conciliation, Mediation and Arbitration negotiating service after workers walked out from a number of facilities late last week over a pay dispute. The company has declared force majeure at its terminals and warned of impacts to it services.

“At this time, we anticipate that portions of our operations will be scaled down,” it said. “However, and to the extent possible, we will attend to invoke contingency plans and source external stand-in/temporary resources to ensure that the operations continue across the various terminals.”

In a customer advisory, Maersk noted that it was already seeing waterside and landside disruptions at Durban, Cape Town and Port Elizabeth, and had been forced to enact a contingency plan to mitigate the effects of the strike.

“Vessels currently waiting to come alongside we will retain at anchor and wait for a berth to become available,” it said. “Should the duration of the strike continue beyond a certain period we may plan to divert to an alternative port outside of South Africa where imports will be discharged and planned for loading back to South Africa on another vessel at a later date.”

It said it would also “stop the clock” on detention and demurrage charges at the affected ports.

“At this early stage it is difficult to predict the severity and duration of the strike and the situation remains very fluid,” Maersk said.

Hapag-Lloyd also said it was working on alternative solutions to keep disruptions to a minimum.

It expects the strike will have an impact on local operations and has extended its detention free time by seven days.

The strike comes at a crucial time for South Africa’s exporters, who are preparing for deciduous fruit season at the end of this month.

Transnet met yesterday with grower representatives in Cape Town to discuss contingency plans for exports given the industrial action.

“Transnet is working closely with industry to ensure that the perishable products, along with other cargo with a limited shelf-life, are prioritised at the ports,” it said. “A joint integrated planning team with industry will also be established to mitigate any further delays. Transnet continues to work closely with the shipping lines and industry broadly to manage the current situation and remains fully committed to moving customers’ cargo as efficiently as possible.”

Rising costs of living have led to a number of industrial disputes at ports around the world, with recent strikes in Germany and the UK disrupting shipping schedules and supply chains.

According to analysts at Drewry, labour availability remains challenging at ports in Germany, leading to high yard occupancy and lower productivity, resulting in increased delays.

“Cargo handling operations at Felixstowe also remain disrupted, due to the backlog created by eight-day walkouts by dock labour in both late August and late September/early October,” Drewry said.

Strike action at Liverpool was further adding to shipper woes, with disruption expected to continue through the fourth quarter.

Drewry believes that rising inflation increases the likelihood of strike action in other markets as dock labour push for higher wages to address the increasing cost of living.

“Disruption on the US west coast remains a risk, for instance, while labour contract negotiations remain ongoing between the International Longshore and Warehouse Union and employer body the Pacific Maritime Association. Whether terminal operators will be able to pass higher wage costs back to customers at the end of the year remains to be seen.”