Unlike other areas in the logistics space, project cargo is affected positively and negatively by developments on an international level. This is according to Shreen Madray, operations supervisor of Turners Shipping’s project freight team.“Naturally, geopolitical conditions are beyond our control; our job is to find solutions to the problems when they occur and make the most of opportunities when they are presented.“ We a re currently in a situation where shipping rates are inf lated as a result of the security problems in the Red Sea,” says Madray.With reduced sailings and vessels being rerouted, shipping lines are reluctant to handle any non-standard or out-of-gauge cargo (OOG), and the industry has seen rates for f lat racks increasing up to three times the usual rates in recent months. “These additional costs have led clients to defer shipments, when possible, until the situation normalises, and prices return to what they were before.”In the meantime, project cargo managers are looking for alternatives and are using breakbulk carriers and ro-ro carriers to move out-of-gauge cargo.Despite the challenges in moving project cargo, demand continues. South Africa’s ports in Durban and Richards Bay remain the gateway into southern Africa. Zambia, Zimbabwe and the DR Congo are areas of growth, particularly in the mining sector, which relies on the supply of machinery and equipment. “There has been a definite increase in demand for cargo to the mining industries as well as increased over-border movement to the DRC, Zambia and Zimbabwe,” he told Freight News. Exports of project cargo continue as the demand for South African manufactured equipment grows in African countries to the north. “We have seen a steady growth in the demand for prefabricated industrial units and housing, and also in steel products like storage tanks.”He said the sector faced a number of challenges, including port congestion at major transhipment ports, shipping lines bypassing certain ports, as well as not wanting to quote on OOG cargo. “The logistics sector faces significant challenges with project cargo, including managing the complexity and coordination of oversized or overweight shipments that require specialised handling and equipment,” he said. “Navigating regulatory requirements and obtaining necessary permits can be time-consuming and complicated, especially when crossing international borders. Additionally, unpredictable factors like infrastructure limitations, and geopolitical issues can cause delays and increase costs, further complicating the transportation process.”Madray is, however, optimistic about the medium-term prospects for customer service in project cargo. “We have access to enhanced shipment tracking and real-time coordination with all parties involved in each project, which provides a level of comfort for customers.”
