TRL3707
ASSIGNMENT 3 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 2024
, TRL3707
Assignment 3 Semester 2 2024
Unique Number:
Due Date: 2024
Logistics Activities
1.1 Seven Factors Driving Transportation Costs in SA Maritime Ports
1. Fuel Costs: Fuel is a major expense in maritime transport. High fuel prices can
lead to increased transportation costs, especially for bulk carriers and container
ships. In South Africa, where ports like Durban handle high volumes of container
traffic, fluctuations in fuel prices significantly impact shipping costs.
Application: Given South Africa’s reliance on imports and exports, changes
in fuel costs, particularly during long waiting periods due to congestion at
ports like Durban, can further escalate the costs for shipping companies.
2. Port Congestion: Congestion leads to delays in loading and unloading cargo,
increasing costs for ship operators. This includes longer ship turnaround times
and increased labor and storage costs.
Application: As the case study highlights, congestion at Durban and Cape
Town ports resulted in delays with thousands of containers left unattended.
These backlogs cause higher demurrage fees and escalate costs for
businesses depending on timely shipments.
3. Aging Infrastructure: Outdated port facilities or equipment lead to inefficiencies
and increased maintenance costs. Ports with aging infrastructure may also
experience operational failures, leading to higher handling times and associated
costs.
ASSIGNMENT 3 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 2024
, TRL3707
Assignment 3 Semester 2 2024
Unique Number:
Due Date: 2024
Logistics Activities
1.1 Seven Factors Driving Transportation Costs in SA Maritime Ports
1. Fuel Costs: Fuel is a major expense in maritime transport. High fuel prices can
lead to increased transportation costs, especially for bulk carriers and container
ships. In South Africa, where ports like Durban handle high volumes of container
traffic, fluctuations in fuel prices significantly impact shipping costs.
Application: Given South Africa’s reliance on imports and exports, changes
in fuel costs, particularly during long waiting periods due to congestion at
ports like Durban, can further escalate the costs for shipping companies.
2. Port Congestion: Congestion leads to delays in loading and unloading cargo,
increasing costs for ship operators. This includes longer ship turnaround times
and increased labor and storage costs.
Application: As the case study highlights, congestion at Durban and Cape
Town ports resulted in delays with thousands of containers left unattended.
These backlogs cause higher demurrage fees and escalate costs for
businesses depending on timely shipments.
3. Aging Infrastructure: Outdated port facilities or equipment lead to inefficiencies
and increased maintenance costs. Ports with aging infrastructure may also
experience operational failures, leading to higher handling times and associated
costs.
