Strike action 2 – Declaration force Majeure

October 31, 2022 - Update 6

With the return of workers from both the Allied Workers Union (SATAWU) and United National Transport Union (UNTU) from Thursday 20th October, all labour is back at work, and we can declare the strike over.

Through this week, Transnet’s immediate priority has been to clear the backlogs across the port and rail system, prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customer. Very positive progress has been made to mitigate the impact of the strike and normal operations across all terminals is close to being fully restored. Transnet’s declaration of Force Majeure at the terminals, however, has not yet been lifted.

On the downside the rail network remains highly constrained as high levels of cable theft this week has effectively immobilised the key Durban/Johannesburg corridor. All efforts are being made to recover the network including deployment of diesel locomotives as well as replacement cabling.

Current Ports and Terminals Situation

Vessel Operations

Excellent progress has been made this week in recovering the network. While we expect some contingencies will still be needed to offset delays on cargo arrival and loading of exports, the actions taken during the strike has allowed most of the services to “re-set” and we are returning to business-as-usual. We are excited to be reopening services for export bookings - both commitment and SPOT. The following table details our latest planning and decisions by service.

Relief packages

• DND Clock restarted from 20th October 2022 for TNPA Durban terminals and TNPA Inland terminal Johannesburg City Deep.
• DND Clock restarted from 11th October 2022 for Cape Town, Port Elizabeth and East London.
• The COD fee has been restored from 20th October.
• Spot amendment and cancellation fees will be raised for new export bookings made from 20th October.

Export Bookings

• We are re-opening for export bookings across all services in a phased manner. Please consult the table above for details of re-opening by service.
• For existing bookings with containers not yet released, all restrictions have been removed and containers will be freely released.

Imports on water, to be discharged and landed

• With the cessation of the strike and return of labour and resources, transport appointments are becoming fully available.
• Terminal densities are under control and both merchant and carrier haulage releases are flowing.
• The rail corridor to and from Durban and Johannesburg is currently highly constrained due to cable theft. While repairs are underway, carrier haulage rail deliveries may experience some delay for units already loaded on wagons.
• A full road carrier haulage product is available.
• Note bookings from the rest of the world into South Africa remain unrestrained.

This will be our last “Strike Update”. A post-strike review will be conducted to assess the effectiveness of our contingency and business continuity planning - what went well and what key learnings we can take forward to improve our planning and response to future incidents.

Thank you for your patience and collaboration during this period. We kindly request your continued attention to our Customer Advisories.

If you have any questions, please contact our customer Experience teams or visit our website Maersk.

October 20, 2022 - Update 5

On Monday 17th October a significant positive step was achieved with the conclusion of a three-year wage agreement with the majority union, UNTU (United National Transport Union) - UNTU represents 54% of bargaining unit employees at Transnet. The South African Transport and Allied Workers Union (SATAWU), representing the remaining 46% of Transnet employees, has rejected the same offer and its members continue to strike. This afternoon, 19th October, SATAWU appears to have called off the strike but not yet signed the agreement. Negotiations continue and we are hopeful a conclusion can be reached this week.

With an agreement reached with UNTU, operations are beginning to pick up. Transnet’s immediate priority is “clearing the backlog across the port and rail system, prioritising urgent and time-sensitive cargo, and implementing recovery plans, working with industry and customers ”. We recognise we still have a long road ahead towards full recovery as the impact of the strike unwinds, and it will take several weeks to return to normal operations. We are committed to finding solutions to accelerate improvement and our contingency planning and execution processes remain fully deployed.

Yesterday 18th October there was an encouraging increase in activity from the virtual standstill of last week. Across all terminals there are limited gangs working and gates are open. Durban terminals remain the most constrained. Booking slots for transporters to collect containers are also limited. The rail network is opening with priority being given to the main container corridors ex Durban to Johannesburg, City Deep and Pretoria, Pretcon.

Current Ports and Terminals Situation

Vessel Operations

While the end of the strike is within sight, its consequences will be felt for weeks to come and ongoing network contingencies will be needed to offset delays on cargo arrival and loading of exports. Imports will be discharged. Load moves (full and empty) may be cut depending on achieved versus proforma productivity and necessary departures times. The following table details our latest planning and decisions.

Relief Packages

• Detention and demurrage Clock stop has been extended from 6th October to 17th October 2022 for cargo bound to port(s) in Durban and export containers.
• Detention and demurrage Clock stop from 6th October to 10th October 2022 for Johannesburg, Johannesburg City Deep, Port Elizabeth, East London & Cape Town, and for export containers.
• Change of Destination (COD) Fee will be waived.
• For bookings that need to be moved or cancelled as a direct impact of the strike, amendment and penalty fees will not be applied (nor will compensation payments be paid).
• Please note that normal operations continue at all our depots and standard Depot Storage and Detention will be applied where applicable.

Export Bookings

• While the suspension of all new DRY bookings out of all ports on all services remains in place this is being reviewed. Decisions will be made based on estimated productivity, existing bookings, and potential rolling from one voyage to the next. We aim wherever possible to open to new bookings and this will be done in a controlled manner and on a limited scale at this point.
• For existing dry bookings with containers not yet collected we have suspended release of equipment given the suspension of terminal operations. This is being reviewed and as stacks are announced equipment will be released for existing bookings and possible new bookings.
• Bookings may remain active, or customers may choose to cancel. No cancellation fee will apply
• Reefer bookings are being very carefully controlled based on likely vessel calls and stacks.
• Storage and depot plug in solutions are in place.

Imports on water, to be discharged and landed

• With limited waterside and landside operation, the discharge and movement of import containers remains constrained.
• While we are making every effort, full imports still on board and discharged units may suffer extended delays.
• With the return of labour and gate and transport appointments are becoming available. At Cape Town and Port Elizabeth gate fluidity is improving. Durban appointments remain constrained and gate activity continues to be a bottleneck
• Depots and road transport continues to operate as normal.
• Note bookings from the rest of the world into South Africa can still be made

We will take all reasonable steps to mitigate against the effect of the strike on our operations and we appreciate information and transparency are key commodities during this period. We will keep our customers updated on developments and contingency plans.

Thank you for your patience during this unfortunate period. We remain contactable via all our usual channels.

We kindly request your continued attention to our Customer Advisories during these times. If you have any questions, please contact our customer Experience teams or our Maersk website.

October 12, 2022 - Update 4

On 07th October in our advisories Strike Action #2 – Declaration Force Majeure and Strike Action#3 Operations Update we provided an update on the Declaration of Force Majeure.

See Transnet Declarations

In the circumstances, all terminals and rail are effectively at an operational standstill.

We have enacted our contingency plans to as far as reasonably possible mitigate the effects of the strike. With such a material impact on terminal and rail service performance as a direct result of the strike, Maersk is unable to perform its contractual obligations under the Contract of Carriage and/or Spot Terms (find at: Terms).

As outlined in advisory Strike Action#3 Operations Update given the service disruption, we had to make two services diversions to ports outside South Africa. (This morning we confirmed the Durban omission of the Northern Democrat on our 09D service – see advisory Northern Democrat – Durban - Omission. We have vessels alongside with containers still to be discharged that are heavily delayed and, with minimal gate and rail activity, we will not be able to deliver sold transit times and delivery dates.

To mitigate against the impact of the strike we announced a relief package in Strike Action #3 Operations Update and Relief packages – and these have been further updated below.

Relief Packages

• Detention and demurrage Clock stop has been extended from 6th October to 13th October 2022 – an 8-day period:
  • For cargo bound to port(s) in Durban, Johannesburg, Johannesburg City Deep, Port Elizabeth, East London & Cape Town, South Africa, and for export containers.
• Change of Destination (COD) Fee will be waived.
• For bookings that need to be moved or cancelled as a direct impact of the strike, amendment and penalty fees will not be applied (nor will compensation payments be paid).
• Please note that normal operations continue at all our depots and standard Depot Storage and Detention will be applied where applicable.

Export Bookings

• The suspension on all new DRY bookings out of all South African ports on all services remains in place.
• We will assess reopening of export DRY bookings contingent on the reopening and normalisation of operations at the ports.
• For existing dry bookings with containers not yet collected we have suspended release of equipment given the suspension of terminal operations. This will be reviewed. Bookings may remain active, or customers may choose to cancel. No cancellation fee will apply.

Imports on water, to be discharged and landed

• With limited waterside and landside operation, the discharge and movement of import containers remains highly constrained.
• While we are making every effort, full imports still on board and discharged units may suffer extended delays.

We will take all reasonable steps to mitigate against the effect of the strike on our operations and we appreciate information and transparency are key commodities during this period. We will keep our customers updated on developments and contingency plans.

Thank you for your patience during this unfortunate period. We remain contactable via all our usual channels.

We kindly request your continued attention to our Customer Advisories during these times. If you have any questions, please contact our customer Experience teams or our Maersk website.

October 11, 2022 - Update 3

We would like to provide a brief update on operations and the current situation around the strike this morning as well as more detail on our relief packages outlined in advisory Strike Action #2 – Declaration Force Majeure.

• Declaration of Force Majeure Transnet SOC Ltd – Transnet SOC Ltd – rail transportation services formally declared the occurrence of an event of Force Majeure – namely the strike action declared by the two recognised unions with Transnet SATAWU and UNTU.

Over the weekend very limited waterside and landside activity took place across all ports. This was exacerbated with high winds at Durban and Cape Town – the latter windbound throughout Sunday. We are preparing for a deepening of strike action with the second union the South African Transport and Allied Workers Union (SATAWU) expected to strike from today.

Given these latest developments we anticipate strike action to continue well into this week and our contingency planning will adjust accordingly to best possible mitigate the effects of the strike. On Friday we triggered two more significant contingencies in response to the lengthening delays.

• Santa Cruz / Santa Teresa - SAECS - Transnet industrial action – SANTA CRUZ will bypass Cape Town and discharge imports at Walvis Bay. SANTA TERESA will take the SANTA CRUZ position and berthed 07th Oct pm at Cape Town CTCT. Imports ex SANTA CRUZ will be picked up by our feeder HORIZON and brought into Cape Town Fruit Produce Terminal (FPT) – a private port not impacted by strike action.
• Maersk Amazon – Cape Town - Omission - MAERSK AMAZON will proceed to Pointe Noire to discharge all Cape Town Cargo in Pointe Noir (PNR DRC) to connect to the ELBELLA T9J. This vessel will also call the Cape Town Fruit Produce Terminal (FPT).

We will continue to notify future vessel and cargo contingency plans as soon as possible contingent on the development and duration of the strike. Please regularly consult our website – which will be updated to reflect any planned schedule changes.

Export Bookings

• The suspension on all new DRY bookings out of all South Africa ports on all services remains in place.
• We will assess reopening of export bookings contingent on the reopening and normalisation of operations at the ports.
• We aim to fulfil all existing bookings on first booked vessels, dependent on the duration of the strike.
• Please reach out to our team should you wish to enquire about storage options for your packed containers.
• Bookings from the rest of the world into South Africa can still be made.

Imports on water, to be discharged and landed

• With limited waterside and landside operation, the discharge and movement of import containers are highly constrained.
• While we are making every effort, full imports still on board and uncollected discharged units may suffer extended delays.

Relief Packages

• Given the growing delays and disruptions we can confirm the following:
  • DND Clock stopped: 6th October – 10th October 2022 – 5 day period.
• For cargo bound to port(s) in Durban, Johannesburg, Johannesburg City Deep, Port Elizabeth, East London & Cape Town, South Africa.
• For export containers
  • Change of Destination (COD) Fee will be waived.
  • We are reviewing amendment and cancellation fees for bookings that may need to be moved or cancelled as a direct result of the impact of the strike.
  • Please note that normal operations continue at all our depots and standard Depot Storage and Detention will be applied at where applicable.

At this early stage it is difficult to predict the severity and duration of the strike and the situation remains very fluid. We will endeavour to do our very best to mitigate the strike’s worst effects and we appreciate information and visibility are key commodities during this period. We will keep our customers updated on developments and contingency plans so we can still, best possible load your exports and deliver your imports.

Thank you for your patience through what will be another very difficult period for us all and we remain contactable via all our usual channels.

We kindly request your continued attention to our Customer Advisories during these times. If you have any questions, please contact our Customer Service teams or our Maersk website.

We sincerely thank you for your co-operation during this time.

October 10, 2022 - Update 2

We would like to provide a brief update on operations and the current situation around the strike.

Two important statements were issued today by Transnet:

• Transnet update on wage negotiations – warning against an unprotected strike - that outlined the improved wage offer tabled at the Bargaining Council as well as stating UNTU’s strike notice served 03rd October is defective in law. “This means that any sort of strike action by UNTU members or any other employee would be legally unprotected”.
• Declaration of force majeure due to anticipated strike action by recognised unions - Transnet Port Terminals has formally declared the occurrence of an event of Force Majeure – namely the strike action declared by the two recognised unions with Transnet SATAWU and UNTU. (Clause 11 of the Transnet Port Terminals Standard Terms and Conditions defines an “Event of Force Majeure" to mean an event beyond the control of TPT and the Customer).

Transnet Port Terminals has invoked contingency plans in an effort to maintain a level of operations.

We have witnessed today that operations waterside and landside at TPT terminals have been negatively affected . At Durban Container Terminals as notified by the port - Durban Container Terminals Landside Update 06 October 2022 - operations were impacted and appointment slots suspended. Similar limited performance was experienced in Cape Town and Port Elizabeth terminals. Inland, TFR rail services have been interrupted, exacerbated by cable theft and inland terminal City Deep, Johannesburg has also been impacted by strike action.

Against this background we have enacted our contingency plans to best possible mitigate the effects of the strike.

• Vessel Operations
  • The Santa Cruz and Maersk Chennai successfully completed operations last night and sailed.
  • The following Maersk and partner vessels remain alongside - limited operations were performed today.
    • At Durban: P1 MSC Acapulco (040 AMEX); DCT CCNI ARUCO (160 Safari) and STANLEY A (251 Protea); Point POLONIA (09D).
    • At Coega : MV BORDER ; PLZ: SAN ANTONIO (251 Protea)
    • At CPT: CTCT Maersk VILNIUS (040); MPT AFLORA at MPT
  • Vessels currently waiting to come alongside we will retain at anchor and wait for a berth to become available. 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.
  • For non-Maersk operated vessels, we will coordinate with our VSA partners who will plan the specified vessel contingency.
  • Details of specific vessel and cargo contingency plans will be notified as these firm up – contingent on the development and duration of the strike.
  • Please regularly consult our website – which will be updated to reflect any planned schedule changes.
• Relief Packages
  • Given the growing delays and disruptions we are reviewing a set of relief packages:
    • “Stop the clock” on DTN and DEM – import – of a duration to be specified, applicable at terminals.
    • “Stop the clock” on DTN and DEM – export – of a duration to be specified at customers premises or at terminals.
    • Review amendment and cancellation fees for bookings that may need to be moved or cancelled as a direct result of the impact of the strike.
    • Review of charges for shipments that may require COD as a result of the impact of the strike.
  • Please note that normal operations continue at all our depots.
    • Standard Storage and Detention will be raised where applicable.
    • Our standard Overstay process will remain in operation.
  • Please reach out to our team should you wish to enquire about storage options for your packed containers – dry and reefer.
  • We aim to finalise details of our relief package by close of business tomorrow 07th October.

At this early stage it is difficult to predict the severity and duration of the strike and the situation remains very fluid. We will endeavour to do our very best to mitigate the strike’s worst effects and we appreciate information and visibility are key commodities during this period. We will keep our customers updated on developments and contingency plans so we can still, best possible load your exports and deliver your imports.

Thank you for your patience through what will be another very difficult period for us all. We will provide our next update later today (Friday 07th October) and we remain contactable via all our usual channels.

We kindly request your continued attention to our Customer Advisories during these times. If you have any questions, please contact our Customer Service teams or our Maersk website.

We sincerely thank you for your co-operation during this time.

October 06, 2022 - Update 1

Further to our advisory of Tuesday 04th October Update on Transnet Wage Negotiations, on Wednesday 05th October, Transnet issued the following two statements:

• Management presents improved wage offer to be tabled at Bargaining Council that outlined the improved wage offer tabled 05th October.
• Possible strike action – invocation of the TNPA port of durban business continuity management plan date on transnet wage negotiations – stating that Durban TNPA Business Continuity Management Plan has been invoked in response to the recognised labour unions serving Transnet with a notice to embark on a protected strike.

Given these developments strike action is inevitable commencing Thursday 06th October and we have enacted our contingency plans to best possible mitigate the effects of the strike.

• Vessel Operations
  • Maersk vessels currently working alongside we plan to sail the evening 05th October. While we aim to complete operations prior to departure, there may not be time to load all planned units. We will notify impacted customers of any short shipments.
  • Vessels currently waiting to come alongside we will retain at anchor and wait for operations to recommence. 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.
  • For non-Maersk operated vessels, we will coordinate with our VSA partners who will plan the specified vessel contingency.
  • Details of specific vessel and cargo contingency plans will be notified as these firm up – contingent on the development and duration of the strike.
• Export Bookings
  • We have taken the decision with immediate effect to suspend all new bookings out of all ports on all services.
  • We will assess reopening of export bookings contingent on the reopening and normalisation of operations at the ports.
  • We aim to fulfil all existing bookings on first booked vessels, dependent on the duration of the strike.
  • Details of specific vessel and export cargo contingency plans will be notified as these firm up – contingent on the development and duration of the strike.
  • Please reach out to our team should you wish to enquire about storage options for your packed containers.
• Landed Imports
  • In our advisory of Tuesday 04th October we encouraged all our customers who had units available for collection to expedite as quickly as possible the movement of your containers out of the ports along the South African coast before the proposed strike deadline 05th October 2200.
  • As a proactive measure we have attempted to move as many uncleared units as possible to off-dock facilities today 05th October before commencement of the strike.
  • Customers have been informed of these moves that have been successfully completed and notified from which depot their respective units can be collected.

At this early stage it is difficult to predict the severity and duration of the strike and the situation remains very fluid. We will endeavour to do our very best to mitigate the strike’s worst effects and we appreciate information and visibility are key commodities during this period. We will keep our customers updated on developments and contingency plans so we can still, best possible load your exports and deliver your imports.

Thank you for your patience through what will be another very difficult period for us all. We will provide our next update later today (Thursday 06th October) and we remain contactable via all our usual channels.

We sincerely thank you for your co-operation during this time.