SA fruit growers oppose Maersk reefer box price rises

Antwerp, Belgium:  South African citrous fruit shippers oppose the planned rate hike by AP Møller Maersk Group-controlled liner companies Maersk Line and Safmarine.

The Citrus Growers Association of Southern Africa said its carrying out an impact assessment on the planned increases. The association’s chief executive, Justin Chadwick said there was “no plausible explanation that warranted such an increase”, calling it “overzealous” and “somewhat flawed”.

In a keynote speech to the Cool Logistics conference in Antwerp, Maersk Line CEO Søren Skou this week told delegates the hike represented a 30% increase in prices globally and that the carrier might rethink its participation in the reefer trades if it did not see better returns.

Skou said that over the past seven years reefer rates had not been able to cover the increases in inflation or bunker costs, and between now and 2015 the industry would need to invest US$3.5bn new equipment, which also would not be covered by current rates.

Chadwick said: “On the South Africa-Europe tradelane, freight rates are considered sufficient to both realise a return on investment on equipment and generate a profit.” He says other shipping lines would follow Maersk’s line on price hikes. He said logistics costs were already a heavy overburden on the citrus industry and with inflationary costs in 2013 and the “opportunistic” freight increase, the future of the citrus industry looked difficult – especially in terms of returns back to farmers.

Chadwick said he was also disappointed at Maersk’s calls for renegotiations on cargo being moved before the planned January 2013 increase, and on the unfair way in which bunker levies were being implemented.

Maersk and Safmarine say that without the $1,500 general rate increase, there will be no investment in new equipment.

WORLD NEWS

Lineage Logistics buys Polish cold storage company Pago

Novi, Michigan, USA: Lineage Logistics has expanded in Europe acquiring Pago; Poland’s largest cold storage and logistics provider. The move marks Lineage’s entry into the …

READ THE FULL STORY >

Stena adds third new ferry Irish Sea fleet

Dublin, Ireland: Stena Line has taken ownership of its newest ferry, Stena Embla, following a handover ceremony in Weihai, China. The vessel is the third …

READ THE FULL STORY >

Luca Quaresima of NewCold takes European cold chain future leader award

Brussels, Belgium: Luca Quaresima, Europe logistic and operations manager, NewCold Advanced Cold Logistics, has been awarded the 2020 GCCA European Cold Chain Future Leader Award. …

READ THE FULL STORY >

IIR highlights high logistics costs for vaccine distribution

Paris, France: Gérald Cavalier, president of the Science and Technology Council of the International Institute of Refrigeration (IIR), has shared his perspective on the pivotal …

READ THE FULL STORY >

WHAT’S ON

  • Get connetced
    Thermo King’s online connectivity event takes place on 10 December at 10am

Latest Tweets

Food service sector needs more government help, says new president of the British Frozen Food Federation. #logistics #coldchain bit.ly/3ma4z9X

© 2020 Global Cold Chain News | Terms of use | Privacy Policy
Commercial Transport Publishing Limited, registered in England and Wales, Company No: 6453302. Registered Office: 6 Corunna Court, Corunna Road, Warwick CV34 5HQ