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TL;DR: The backlog at Durban Gateway Terminal has left vessels waiting days at anchorage and containers stuck in the terminal. Marine cargo insurance generally excludes loss caused by delay, so late delivery, lost sales and spoilage from waiting are usually not covered, and business interruption cover rarely responds to congestion without physical damage. Cargo cover does still respond to physical loss or damage from insured perils during the wait, which is why transit clause limits, diversions, refrigeration cover and Incoterms are worth checking now.
South Africa’s busiest container terminal has been struggling to clear a backlog since mid-August. For importers and exporters, the immediate cost is time: stock arriving late, orders missed and containers sitting in the yard. The insurance question follows quickly. Which of these losses, if any, will a policy pay?
This article explains, in general terms, how marine cargo and business interruption insurance typically respond to a port backlog. Policy wordings differ, so the position on any specific shipment depends on the policy in place.
In this article
What is happening at Durban Gateway Terminal
Durban Gateway Terminal, formerly Pier 2, handles about 40% of South Africa’s container traffic and is operated by ICTSI in partnership with Transnet (Moneyweb, 27 August 2026). Following the terminal’s migration to a new operating system in mid-August, weekly throughput fell by 26% in the week of 10 to 16 August (Freight News, 20 August 2026).
The average port call rose from under five days in late June to more than twelve days by late August (Moneyweb, 27 August 2026). By 28 August, twelve vessels were waiting at anchorage and the refrigerated container stack was at about 108% of capacity. The terminal waived storage charges, prioritised import evacuation and rail movements, and diverted some vessels to Eastern Cape and other terminals (SAAFF member update, 1 September 2026).
According to the freight forwarders’ cargo movement update reported on 11 September, average daily throughput from 14 August to 10 September was 30.5% below the preceding four months, vessels had waited an average of about 212 hours at anchorage, and around 11,550 containers had been diverted. The anchorage queue fell from ten vessels on 7 September to five on 10 September, although this had not yet translated into a sustained recovery (Freight News, 11 September 2026). Transnet has said it is working with ICTSI on measures to stabilise operations and improve performance (Moneyweb, 27 August 2026).
The situation is changing week to week. The figures above are as reported on the dates shown.
Why delay itself is usually not an insured loss
Most marine cargo policies are based on the Institute Cargo Clauses. All three standard sets, (A), (B) and (C), exclude loss, damage or expense caused by delay, even where the delay itself is caused by a risk the policy covers.
In practice, this means the commercial losses a backlog creates are generally not insured under cargo cover:
lost sales or cancelled orders because stock arrived late
late delivery penalties under customer contracts
production stoppages while components are held at the port
loss of market value for seasonal or time-sensitive goods
deterioration of goods caused by the length of the wait
Our article on the Red Sea crisis and SA marine insurance makes the same point for longer shipping routes: marine cover responds to physical loss or damage, not to time lost.
What cargo insurance still covers while containers wait
The delay exclusion does not switch cover off. While containers wait at anchorage, in the terminal or at a depot, the policy generally continues to respond to physical loss or damage caused by insured perils, according to its wording. Under all risks cover based on Institute Cargo Clauses (A), that typically includes:
theft and pilferage, which becomes a greater exposure the longer containers sit in yards and depots
damage during additional handling, restacking and transfers between terminals
fire, water damage and other physical damage while the goods are stored
The Institute Cargo Clauses generally keep cover in force during delay beyond the insured’s control, subject to the time limits in the transit clause. Longer dwell times increase exposure, so claims documentation such as seal numbers, survey reports and handling records matters more than usual.
Refrigerated cargo
With the refrigerated stack running above capacity for weeks, perishable cargo is the most exposed. Deterioration caused by delay is generally excluded. Some policies include specific cover for breakdown of refrigeration machinery, usually subject to conditions such as temperature records and a minimum breakdown period. Whether a spoilage claim succeeds therefore depends heavily on the wording and on being able to show what caused the loss. Temperature logs and power-supply records from the terminal and carriers are important evidence.
Transit clause limits and diverted cargo
Cargo cover does not run indefinitely. The transit clause ends cover on delivery to the final destination, or on the expiry of a set period after the goods are discharged at the final port, whichever comes first. The length of that period varies by wording, and storage at intermediate points may be treated differently. When containers sit at a terminal or depot for weeks, it is worth confirming that the policy period still applies.
Diversions raise a related question. Cover generally continues during deviation beyond the insured’s control. However, if cargo is discharged at a different port and the contract of carriage ends there, the policy normally requires prompt notice to the insurer to keep cover in place, and revised terms may apply.
Why business interruption cover rarely responds
Business interruption insurance, usually arranged alongside commercial property insurance, is normally triggered by physical damage to insured property. Extensions for damage at suppliers’ or customers’ premises, or for denial of access, generally still require physical damage somewhere. A backlog caused by an operational or system problem is not physical damage, so business interruption cover rarely responds to port congestion.
Storage, demurrage and other extra costs
A backlog also generates costs that sit outside insurance altogether: terminal storage, container demurrage and detention charged by shipping lines, additional trucking and waiting time, and rescheduling costs. These are governed by the contracts with terminals, shipping lines and logistics providers rather than by cargo cover. Freight forwarders’ standard trading conditions typically limit or exclude their liability for delay, so recovering these costs from service providers is often difficult.
Incoterms: whose policy is on risk
Who holds the cargo insurance depends on the Incoterm in the sales contract. Under Incoterms 2020:
CIF requires the seller to insure the goods, but only to a minimum of Institute Cargo Clauses (C), which is limited named-perils cover.
CIP requires the seller to insure to Institute Cargo Clauses (A).
FOB, CFR and FCA leave the buyer to arrange its own insurance from the point the risk passes.
An importer buying on CIF terms may be relying on minimum cover arranged by an overseas seller, with any claim handled under that seller’s policy. That is one reason many South African importers arrange their own cargo cover, and a backlog is a good moment to confirm which policy is on risk for each contract.
Stock throughput for longer dwell times
Transit-only policies are designed around goods that keep moving. When cargo sits at ports, depots and warehouses for longer than planned, gaps can open between transit cover and storage cover. Stock throughput insurance covers goods in transit and in storage under a single policy, which suits supply chains with unpredictable dwell times. It still excludes loss caused by delay itself. Our guide to stock throughput for SA importers and exporters explains when it is a better fit than transit-only cover.
Questions importers and exporters are raising
These are the questions importers and exporters are typically raising with their brokers during the backlog:
Is cargo held at Durban, or diverted to another port, covered under the current policy terms, and does the insurer need to be notified?
How long does the transit clause allow after discharge, and how is storage at terminals and depots treated?
Does the policy include refrigeration breakdown cover, and what temperature records does it require?
Are there security conditions for containers held at depots?
Which party insures the goods under the Incoterm on each contract?
Would a stock throughput structure fit current dwell times better than transit-only cover?
Which backlog costs sit outside insurance, and how do the logistics contracts allocate them?
Berkley Risk (Pty) Ltd is an authorised financial services provider (FSP #54407).
Frequently asked questions
Does marine cargo insurance cover losses caused by port delays?
Generally not. The standard Institute Cargo Clauses, which underpin most marine cargo policies, exclude loss, damage or expense caused by delay, even where the delay is caused by an insured risk. Lost sales, late delivery penalties and production stoppages caused by a port backlog are therefore not usually covered by cargo insurance.
Is spoiled refrigerated cargo covered if a container waits too long at port?
Deterioration caused by delay is generally excluded. Some policies include specific cover for breakdown of refrigeration machinery, subject to conditions such as temperature records and minimum breakdown periods, so the answer depends on the wording and on what caused the loss.
Does business interruption insurance cover port congestion?
Usually not. Business interruption cover is normally triggered by physical damage to insured property, and extensions for suppliers or access generally still require physical damage. Congestion caused by an operational or system problem is not physical damage.
Who pays demurrage and storage charges caused by the backlog?
These charges are governed by the contracts with shipping lines, terminals and freight forwarders rather than by cargo insurance, which does not generally cover them. Freight forwarders’ standard trading conditions typically limit or exclude liability for delay.
Is my cargo still insured if the ship is diverted to another port?
Cargo policies based on the Institute Cargo Clauses generally remain in force during delay and deviation beyond the insured’s control. If the cargo is discharged at a different port and the contract of carriage ends there, prompt notice to the insurer is normally needed to keep cover in place, and revised terms may apply.
Does stock throughput insurance help with port delays?
Stock throughput cover insures goods in transit and in storage under one policy, which can reduce gaps when cargo sits at ports, depots or warehouses for longer than planned. It still excludes loss caused by delay itself.
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