Forwarders Criticize South Africa’s Merchant Shipping Bill

South Africa’s proposed Merchant Shipping Bill—designed to support a state-owned shipping line and introduce cabotage rules—has drawn strong pushback from freight forwarders and industry stakeholders. They warn that although intended to bolster domestic coastal shipping, the bill could seriously undermine existing trade dynamics.

According to the South African Association of Freight Forwarders (SAFF), cabotage restrictions could result in a 40% decline in container volumes transiting through ports like Durban, potentially triggering severe congestion and inefficiencies. Under cabotage, international carriers may be restricted to servicing only a single South African port; goods bound for other ports would need offloading and redirection via a domestically operated fleet, likely a new state-owned entity.

Critics—including Terry Gale of Exporters Western Cape—warn that offloading and transshipment will add time, cost, and complexity to supply chains, while South Africa’s current port and logistics infrastructure may not be prepared for such additional strain. This follows a broader caution from SAFF earlier in April about how the bill threatens overall port efficiency, raises costs, and jeopardizes ocean freight supply chains.