The economic slowdown in China, coupled with the slump in commodity prices, has impacted container trade in South Africa, especially the dry exports market.
According to the third quarter Maersk Line Trade Report 2015, the dry exports market – made up of mostly mining commodities – declined by 2% year-on-year in October and by 4% over the last quarter. However, the import market remains steady, with 4% year-on-year growth in October and 2% over the last quarter.
Matthew Conroy, trade manager of Maersk Line Southern Africa, said the report revealed that the trade growth rate was declining in South Africa. “There are however pockets of growth witnessed in certain industries, which are expected to grow even further,” he said.
For example, data has shown that 2015 has been a strong growth year for South African refrigerated (reefer) cargo exports, which include fruits such as apples, pears and grapes, and this is primarily attributed to the exchange rate and strong demand for fruit from Europe.
Fruit exports have grown by 6% in the past quarter, and Conroy believes that refrigerated exports will continue to grow as the global demand for fruit continues to strengthen and crop output remains positive.
Conroy expects dry export growth to remain negative in the short and medium-term due to the significant drop in commodity prices, linked to lower consumer consumption in China.
“As a result of the uncertain economic trade environment and a global drop in demand, the global shipping industry also faces headwinds. It is therefore crucial for South African businesses to align themselves with established and knowledgeable partners who have a global infrastructure to ride out these economic storms,” said Conroy.
Infographic: Maersk Line Trade Report 2015 highlights.
