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.