The economic slowdown in China and the slump in commodity prices has impacted container trade in South Africa, with the dry exports market – comprised primarily of mining commodities – declining by 2% year-on-year in October and by 4% over the last quarter, the third-quarter Maersk Trade Report revealed on Tuesday.

Positively, the import market remained steady, with a 4% year-on-year growth in October and 2% over the last quarter, said Maersk Line Southern Africa trade manager Matthew Conroy.

He added that the trade growth rate in South Africa was declining, with pockets of growth witnessed in certain industries, which were expected to grow.

“Third-quarter data has also shown that 2015 has been a strong growth year for South African refrigerated cargo exports, which generally include fruits such as apples, pears and grapes, which is primarily attributed to the exchange rate and strong demand for fruit from Europe,” he revealed.

Fruit exports had grown by 6% in the past quarter and Conroy believed refrigerated exports would continue to see growth as the global demand for fruit continued to strengthen and crop output remained positive.

He warned, however, that the ongoing drought in various areas of the country could be a cause for concern.

According to Conroy, the road ahead for South African trade was not without obstacles in the form of low consumer confidence, the fluctuating rand and low commodity prices, all of which were resulting in lower confidence levels in the industry, and would drive lower gross domestic product growth and consumer spend.

“In addition, the steady import growth locally from Asia, which is predominately made up of consumer goods, has declined by 4% over the last quarter, indicating that South Africans are currently spending less on consumables such as high-end electronic goods,” he remarked.

Conditions in the dry cargo export market also remained challenging, with a significant drop in commodity prices, linked to lower consumer consumption in China, expected to stunt dry export growth in the short and medium term.

“As a result of the uncertain economic trade environment, as highlighted in our latest report, the global shipping industry too faces headwinds, with global demand dropping.

“It is, therefore, crucial for South African businesses to align themselves with established and knowledgeable partners with a global infrastructure to ride out these economic storms,” advised Conroy.