The allegations come from the East London Spaza Shop Association's secretary, Edgar Biggar who says the increase in the number of container ships is worrying. He says these traders are luring customers away from established shops by offering cheaper prices.
He says the foreign traders operating from containers do not have to comply with bylaws and do not have licences and this contributes to the lower prices that are being charged by them.
Biggar has urged the municipal authorities to take action against the traders but he says all the council has done is "make promises" that they will take action.