Trade deficit starts to narrow

SHIPS ON the SA trades
seem to be bursting at the
seams as they sail in-andout
of SA.
According to interviews
with shipping executives,
FTW has been told that
exports are closely catching
up to imports, and two-way
sea trade is meeting with
high demand.
Alan Jones of Safmarine
recently told FTW that
exports were generally
exceeding imports on the
Far East route - one driving
force being shippers sending
a lot of raw materials in
containers to China.
“It’s good for the balance
of payments,” he said,
“but difficult in terms of
container balance.”
A shipping executive with
Far East interests certainly
agreed that exports were on
a distinct up-and-up, and
that there was a shortage
of boxes.
“As far as I can see,” he
told FTW, “the demand is
extreme both ways, and we
just don’t have the space or
containers to meet
this demand.”
But the good thing about
this situation, he said, is that
the lines’ rates are able to
harden, and little question is
arising from shippers about
the increases already levied,
and others expected to be
implemented soon.
“If shippers need space,”
said the executive, “they
should know they need to
pay for it.”
There is a good indication
of the strengthening of twoway
traffic on the SA trades,
with the trade account in
June seeing the trade deficit
continuing to narrow to
R0.183-billion from a
R1.7-bn deficit in May.
Exports bounced to a
new high of R60.160-bn, and
imports kept their resilience,
and increased to
R60.344-bn.
This more favourable
trade balance might even
move into surplus, if
current trading conditions
are maintained.