South Africa’s freight industry is sounding the alarm over a potential “systemic collapse” as rising diesel prices collide with a new fuel-linked surcharge introduced by Transnet Port Terminals (TPT), set to take effect in May.
According to TPT, the charge, starting at R52 per container, is designed to recover fuel-related operating costs for port equipment such as straddle carriers and generators. However, the fee is tied to coastal diesel prices and could climb sharply if fuel continues its upward trend.
The South African Freight and Logistics Association (Safla) warns that the timing could not be worse. With diesel prices already surging and further hikes expected, the association says the added cost is triggering a “snowball effect” across the supply chain that will soon reach consumers.
Safla vice-chair Jonathan McDonald says many operators are already under pressure and cannot absorb additional costs. “Vehicles are being parked. Loads are being declined. Smaller operators are reaching a point where the cost of running a trip is higher than the income it generates,” he said.
The situation is echoed by Road Freight Association CEO Gavin Kelly, who notes that the sector operates on extremely thin margins, averaging just 3.5% return on investment. This leaves little room to manoeuvre when fuel costs spike.
Read | South Africa’s Fuel Price Crisis, Will Diesel Hit R40 in May and What It Means for Truckers
Adding to the strain is a cash flow crunch, with operators facing fuel increases of more than R7 per litre in April while waiting up to 90 days for payment on completed work.
Under TPT’s pricing structure, the surcharge could rise to as much as R157 per container if diesel prices approach R38 per litre. For high-volume operators, this could translate into thousands of rand in additional daily costs.
Industry stakeholders warn that the impact will not stop at transporters. Shipping representatives, including Peter Besnard of the South African Association of Ship Operators and Agents, say the added costs will ripple through the economy, driving up prices of everyday goods and increasing pressure on already stretched households.
While some, like maritime consultant Dave Watts, argue the initial surcharge is relatively small compared to overall transport costs, concerns remain about its long-term impact if fuel prices continue to climb.
The crisis comes at a time when global shipping routes are shifting around the Cape of Good Hope due to geopolitical tensions, offering South Africa a rare opportunity to strengthen its position as a logistics hub. However, industry players warn that rising costs and inefficiencies could undermine this advantage.
Safla has called on government to urgently extend the temporary R3 per litre fuel levy relief beyond early May. Without intervention, the association warns that key routes, including the busy Durban to Gauteng corridor, could become loss-making for many operators.
As pressure builds across the logistics chain, the message from the sector is clear: without swift action, the cost of keeping goods moving may soon become unsustainable.
The latest SA Trucking News straight to your inbox!
