Ships rerouting around the South African coast face more delays due to weather conditions

Violent weather along the South African coast will cause shipping delays to vessels rerouting around the Cape of Good Hope due to Red Sea disruptions, shipping giant Maersk warns in a statement cited by Bloomberg. The South African Weather Service predicted conditions through the day yesterday including waves of up to 10 meters along with gale force winds and heavy rainfall. The conditions “will impact vessel movement and operations” along the South African coastline, mainly between Cape Town and Port Elizabeth, the company said in a statement.

US ports slam tariffs on Chinese-made cranes: Major US port operators are urging the Biden administration to reconsider a 25% tariff on Chinese-made cranes, arguing they will negatively impact port efficiency, raise costs, and disrupt supply chains, Bloomberg reported. There are currently seven US ports under contract to buy 35 Chinese ship-to-shore cranes, and the tariffs would add USD 131.3 mn of additional costs to port operators that could potentially cut expansion plans and wind down existing projects, American Association of Port Authorities CEO Cary Davis said.

Cybersecurity concerns? Chinese-made cranes — which account for 80% of cranes used at US ports — present a risk to cybersecurity and can be used as an avenue for spying, the Biden administration argues. However, the ports say there are safeguards in place to prevent such attacks.

More issues: “The tariff, if imposed, will not meet its stated objectives. Instead, it will only result in negative outcomes, including grave harm to port efficiency and capacity, strained supply chains, increased consumer prices, and a weaker U.S. economy,” Davis said. The tariffs could also potentially lead to slower dockside operations and jeopardize environmental sustainability, the Port of Houston said. South Carolina Ports also said that “this cost will translate to longer wait times and increased dwell times for visiting container ships,” which will affect the ports’ competitiveness against rivals in Mexico and Canada.

REMEMBER- The US went on the offensive in the trade war with China in May, announcing a raft of tariff increases on USD 18 bn worth of Chinese imports that will begin taking effect between 2024 and 2026.