FREIGHT OPERATORS have begun to feel the effects of the declining rand, with inbound containerised cargo declining over the past two months.
Figures released by the port of Cape Town show that containerised cargo declined by 31% from 186 000 tons to 127 000 tons. The number of containers dropped almost 11% from 27 620 to 24 674.
The drop in trade could force some freight companies to scale back operations, after a year of steady expansion. Many have opened additional offices around the country but may have to review these as business declines.
Some freight operators are trying to offset import losses by taking advantage of the increasing demand for SA goods. Analysts say that exports, which traditionally make up less than 20% of most freight operators' business activities, could become more prominent.
There is also cause for optimism that the rand has finally begun to recover. In recent weeks it has gained steadily against the dollar and pound, in spite of the US currency making a strong showing on the international currency markets. Analysts say that a big demand for rands from local and foreign buyers, and SA exporters in particular, is fuelling its turnaround. They expect this trend to continue for the rest of the year.
