Proposed shipping legislation in South Africa is stirring concern across the country’s fruit export sector, with stakeholders warning it could jeopardize the industry’s global competitiveness.
The controversy centers around the Merchant Shipping Bill (2023), which includes cabotage provisions that would restrict foreign vessels from operating along the South African coast for short-haul domestic shipping. The aim, according to lawmakers, is to strengthen local maritime capacity. But agricultural exporters fear it could have the opposite effect.
“If enforced, these regulations could isolate crucial ports from global shipping networks,” said Annelize Crosby of the Agricultural Business Chamber (Agbiz), at a recent industry meeting in Cape Town. She warned that foreign-owned ships might be limited to a single port—likely Durban—reducing access to other important gateways such as Cape Town and Port Elizabeth.
The result? Higher costs, longer transit times, and potential disruption to the cold chain infrastructure that keeps South Africa’s fruit fresh on its way to overseas markets. That could prove disastrous in highly regulated destinations like the EU, where strict Sanitary and Phytosanitary (SPS) standards demand near-perfect handling.
The bill’s vague licensing requirements add to the uncertainty, and shipping companies have made it clear they’re not planning to lower rates to offset any new operational hurdles.
Agbiz, representing more than 100 stakeholders in the agricultural supply chain, has called for the bill to be sent back to the National Economic Development and Labour Council (Nedlac) for further consultation. The group is urging lawmakers to consider the broader economic implications before proceeding.
Another concern is that exporters may be tempted to reroute shipments through more open regional ports like Walvis Bay in Namibia or Maputo in Mozambique, reducing traffic and revenue for South African ports.
“The Department of Transport appears not to have fully assessed the ripple effects,” Crosby noted, adding that broader engagement across government and the private sector is essential before any legislative changes are finalized.
As Parliament’s Portfolio Committee on Transport prepares to deliberate, stakeholders are hoping for a more measured, consultative approach that balances national interests with the realities of a complex global supply chain.