Commodities demand will continue to lead export growth

Safmarine is predicting that South Africa’s overall containerised export market will grow in 2012, albeit at a somewhat muted 3-4%. The carrier is however confident of strong performances from the commodity and reefer export sectors and in the trades to the Far and Middle East and North and West Africa. Janine Nainkin, Safmarine South Africa’s national dry exports and capacity manager, says strong demand for South African minerals in the East is likely to result in high export volumes for the minerals and mining sectors. She also expects higherthan- average containerised export growth to the West and North African markets based on the current demand for South African manufactured goods in the food and beverage sectors. “Exports to West and North Africa are also likely to grow further as more and more South African companies enter and expand their business interests in these regions,” she says. “As Safmarine our focus is on supporting our exporters by making sure our customers have access to shipping services that not only connect South Africa with these markets, but offer reduced transit times and increased reliability.” Nainkin believes several South African exporters are likely to enter the West and North African markets in the new year for the first time. “We’ve seen a lot of interest in our weekly 225 service – a direct containerised service between South Africa, West Africa and the Med – from customers who haven’t shipped to that region before. Interest in this service has been particularly strong from the reefer sector.” While Safmarine’s total reefer exports for 2011 (ytd ending October) grew by 2%, indications are that the market dropped by 7%. Volumes are expected to improve in 2012, according to Safmarine’s reefer executive, John Mac Donald. “The 2012 reefer export season, which has just begun, is looking very positive and we expect perishable exports to grow next year thanks to better-expected weather patterns, improved crop yields and a weaker rand. As such, we expect containerised reefer space to be at a premium, especially during the peaks.” Mac Donald attributed the drop in 2011 reefer volumes to severe weather conditions, a strong rand, high bunker fuel prices and tough competition in overseas fruit markets.