Shipping giant Maersk will discontinue its direct U.S.-South Africa service, potentially causing increased costs and delays for exporters.
South African exporters are bracing for a challenging period, as Maersk, the only carrier offering direct sailings between South Africa and the United States, is set to discontinue its service from October 1, 2025. This move will force exports to be rerouted via European hubs, resulting in longer lead times, higher logistics expenses, and a more fragile logistics network.
The shift will significantly impact South Africa's competitiveness in critical sectors, particularly those that rely on just-in-time delivery and perishable goods exports. For instance, fresh fruit and wine producers, where shipping speed is crucial to maintaining product quality, may face delays of 7-14 days or more due to additional port handling and potential congestion in European hubs.
Maersk's decision to end its direct U.S.-South Africa service marks a significant shift in trade dynamics between the two markets. Containers will likely pass through ports such as Algeciras, Rotterdam, or London Gateway before crossing the Atlantic, adding complexity and time to the supply chain.
This change will also lead to increased transportation costs and operational surcharges for exporters, who are already under pressure. The longer shipping durations threaten freshness and quality in sectors like fruit and wine, which depend on fast, direct shipping to the US market.
Moreover, Maersk's exit removes a major player and reduces choices for direct shipping to the US, potentially escalating costs and service interruptions for exporters. With Mediterranean Shipping Company (MSC) as the sole operator offering a direct weekly sailing between these two markets, concerns about capacity and service reliability risks have arisen.
Industry stakeholders are suggesting regional trade infrastructure improvements, such as enhanced port efficiency and new direct trade agreements with alternative shipping lines, to mitigate the fallout from Maersk's withdrawal. The South African Maritime Business Chamber has urged for a national strategy to foster local shipping capacity and maintain maritime trade competitiveness amid this shift.
This development underscores a broader challenge facing global shipping: increasing reliance on fewer carriers for long-haul routes, leaving economies vulnerable to sudden changes in service availability. As South African exporters navigate longer transit times, higher costs, and a more complex logistics network, they are advised to plan ahead, diversify shipping options, and build time buffers into their supply chain schedules.
[1] South African trade organizations call for urgent action to mitigate the fallout from Maersk's withdrawal. [2] Exporters could face delays of 7-14 days or more due to additional port handling and potential congestion in European hubs. [3] They are also advocating for incentives for other carriers to enter the market and restore competition. [4] The South African Maritime Business Chamber warns this shift heightens vulnerability to global market fluctuations and stresses the need for domestic maritime strategies to support export stability.
Sources: [1] Business Tech, [2] IOL Business Report, [3] Engineering News, [4] South African Maritime Business Chamber.
- The impending discontinuation of Maersk's direct service between South Africa and the United States from October 1, 2025, has prompted South African trade organizations to call for immediate action.
- Exporters may encounter delays of 7-14 days or more due to additional port handling and potential congestion in European hubs as a result of this shift.
- In a bid to restore competition and diversity shipping options, these organizations are advocating for incentives for other carriers to enter the market.
- The South African Maritime Business Chamber has underscored that this change heightens South Africa's vulnerability to global market fluctuations, highlighting the importance of domestic maritime strategies to support export stability.
- With Maersk's exit, there is increased concern about potential capacity and service reliability risks, given Mediterranean Shipping Company is the sole operator offering a direct weekly sailing between these two markets.
- Containers will likely pass through ports such as Algeciras, Rotterdam, or London Gateway before crossing the Atlantic, adding complexity and time to the supply chain.
- Facing an increase in transportation costs and operational surcharges, exporters in sectors like fruit and wine may struggle to maintain product freshness and quality due to the longer shipping durations.
- In response to these challenges, industry stakeholders suggest regional trade infrastructure improvements, such as enhancing port efficiency, and forming new direct trade agreements with alternative shipping lines.
