Perishables lead the export charge into US

Automotive industry adds impetus
JOY ORLEK
THE PERISHABLE and automotive industries are leading the charge in South Africa’s slow but steady export growth into the United States. From a carrier perspective the automotive industry has been a dream come true, says New York-based Safmarine Inc president John Boudreau, with parts criss-crossing each other on the same route for production in the US and production in South Africa. “It’s a great opportunity for manufacturing companies to operate strategically, using South Africa as the production and manufacturing hub for the rest of Africa,” he told FTW in New York recently. Less encouraging, however, has been the textile industry. “There were high hopes for garments to take off from southern Africa and the Indian Ocean Islands, but instead we’ve seen China and India taking production from other parts of the world. “It’s unfortunate because there was a lot of momentum at one time, but you can’t swim upstream against competition like that.” In additional to the cost of manufacturing, the long transit from SA to the US and the less than seamless service particularly to the west coast are further obstacles to growth. Contrast this with the five or six departures a day from Chinese and Indian hub ports to the US west coast, and the extent of the problem is clear. Perishables have, however, been the shining light with peak season for citrus and grapes fast approaching. South African produce is clearly making its mark. “Previously clementines were imported mostly from Spain and Morocco. This year there’s a big availability of the fruit from South Africa, and although the stronger rand has made some impact, the US consumer is driven more by the desire to have than by the price,” says Boudreau. Bulk buying by retailers has also played a role in reducing the cost of imports. US exports have been growing as well. “We’re moving a fair amount of paper goods, chemicals, packaging materials, auto parts, mining and agricultural machinery,” says Boudreau. “This is not necessarily specific to South Africa but rather to southern Africa where oil exploration and mining are creating huge opportunities. This relates not only to the large pieces of equipment being exported but to supplies for the people involved in the projects." Volumes are well served by the single weekly service provided by Safmarine and its partners, and Boudreau foresees little change in the status quo. “We’ve seen good utilisation in both directions and will continue to provide a premium direct product with the emphasis on reliability and predictability that comes from schedule integrity.”