Grain producers are keeping a close eye on mineral commodity developments as the lack of exports could impact transport rates negatively.
Several traders told Freight News there was a close link between the movement of grains and minerals on the North-South corridor.
“It is a relationship that is often not spoken of, but grains and minerals have a very close connection when it comes to an economical, sustainable and competitive supply chain,” said a Durban-headquartered grain exporter.
He said wheat could only be moved from Durban to the north of the country at competitive rates if transporters were bringing down manganese, chrome and steel to the ports in Durban.
“We see our transport rates easily double if there is no commodity on the truck coming down. On the cross-border routes the movement of copper, platinum and chrome down to the port is essential for our exports up into neighbouring countries.”
South Africa is currently having a very good grain export year with a surplus of maize available.
“Demand in Zimbabwe has been very high as they had a weaker crop. We have seen volumes rise exponentially into Zimbabwe in recent months - even with the lockdown due to Covid-19,” said another grain producer.