Cape Town port hit with fuel levy
There have been mixed reactions following Transnet Port Terminal’s (TPT) announcement last week that they will introduce a fuel neutrality charge in May following fuel price increases, driven by ongoing global supply chain disruptions.
Image: Leon Lestrade/Independent Newspapers
There have been mixed reactions following Transnet Port Terminal’s (TPT) announcement of a fuel neutrality charge in May following fuel price increases.
TPT said recent fuel price increases, driven by ongoing global supply chain disruptions, have impacted TPT’s diesel-dependent cargo handling operations.
“As such, TPT will from May 1, 2026, effect the fuel neutrality charge based on the coastal diesel index thresholds.
"The fuel neutrality charge will be reviewed in accordance with the pronouncements of the Department of Mineral Resources and Energy.
“The fuel neutrality charge is being implemented as a transparent, cost-recovery mechanism to ensure the continued delivery of efficient, reliable, and sustainable terminal operations, while minimising disruption to customers and the broader logistics value chain."
TPT said they remain committed to delivering reliable, efficient, and cost-effective cargo handling services across all its terminals.
“We place our customers at the centre of our operations and will continue to engage transparently and proactively with all industry stakeholders, ensuring consistent communication, clarity on any impacts, and collaborative solutions that support supply chain resilience.
“Furthermore, contingency plans ensuring fuel availability have been activated across our network of 15 terminals to ensure that all operational activities remain fully supported and that the business is able to adequately service its valued customers,” added TPT.
Gavin Kelly, CEO of the Road Freight Association, said they learned of the notice by TPT to implement a container handling fuel surcharge, the "fuel neutrality charge," which comes into effect at an initial rate of R52 per container.
“Firstly: there is nothing 'neutral' about adding R52 or any cost into the logistics chain. Secondly: when last the association loaded a container, there was no engine that consumed fuel."
Kelly added that the additional cost will be to the bill of the customer (the entity using the container) and not the road freight transporter.
“However, where the payment will be done has not been clarified. There are references to the 'shipping lines' – and if so – then that would be a transaction between the shipping line and the entity that booked the container – not the road freight transporter.”
Kelly said experience has taught them that through bad communication and planning – the first application of the surcharge will most probably be expected from the truck driver (representative of the transporter).
“The cost (surcharge) will be added to the transport bill of the customer.
"The total logistics cost will increase and be reflected in upward pressure of the final price of the goods when purchased by the consumer.
"The added cost will be applied immediately by customers into their transport cost – as the surcharge will be 'immediately' payable – and is not borne by the transporter per se.”
Kelly added that the transporter will have the direct diesel/petrol cost to contend with – depending on the contract between the transporter and the customer (who required the movement of the goods via container).
Malcolm Hartwell, head of transport at Deneys and Master Mariner, said it is anticipated, at present, that the diesel price will increase by as much as another 50% in May and presumably TNPA will seek to pass that increased cost on as well.
“That increase would be an additional R75 per TEU if calculated on the same basis as the current increase.”
Hartwell added that as with any cost in the logistics chain, this additional charge will initially be borne by the container operators being the shipping lines.
“It seems likely given the massive increase in fuel prices that this cost and other additional diesel costs will be passed on by the shipping lines to their customers. Customers in turn will either have to absorb those charges or pass them onto the long-suffering consumer.”
Hartwell said that as has been pointed out by all commentators on this issue, the fuel price increases are going to be borne initially by fuel users, but ultimately will be passed onto businesses, their customers and the consumers.