Buoyant reefer industry welcomes launch of ‘Reefer Express’

While the straitened
circumstances of the world
economy have seen most
shipping lines downsizing, a
notable exception has been the
SA–Europe Container Service
which this week introduces
additional capacity to cater for
strong demand from the Cape
reefer industry.
“With the demise of the
Sails service late last year, there
was an immediate reduction in
available reefer plugs,” Deutsche
Afrika Linien managing director
Ron Frick told FTW.
“With no new capacity to
replace it, the reefer industry
made strong representation to the
lines to assist them because they
saw there would be a bottleneck
– particularly in the peak season
from mid March to August/
September where you have a
cross-over of deciduous and
citrus running simultaneously.”
In addition, some of the bulk
reefer ships that used to call
have reached an age where many
are no longer economically
viable because of high fuel
consumption – or they’re trading
to other parts of the world where
returns are better, like Chile and
South America.
“Realising the gap, the Saecs
member lines – of which DAL is
a joint decision-maker – chose to
introduce northbound charters, to
be known as the Reefer Express,
to cope with the reefer period,”
Frick told FTW.
It’s a dedicated service,
initially with only one port of
load out of Cape Town to two
ports of discharge – Thamesport
and Antwerp. Later in the
season, depending on demand,
the service could add Port
Elizabeth and/or Durban as
additional load ports.
And the timing couldn’t be
better.
According to industry
insiders, the table grape season
was delayed by two weeks
and the rest of the stone fruit –
plums and nectarines – haven’t
ripened in the normal period so
suddenly the packing season is
concentrated into a very short
space of time.
“The reefer industry needs
somewhere to put that fruit
and make sure it gets into the
European market as soon as
possible,” says Frick.
“And although there was
concern that the economic
slowdown in Europe would
lessen demand for reefer, our
clients report that the slowdown
has been less dramatic than other
industries – a reduction in sales
of 7-10%.
“But with the housewife in
Europe buying down, the weaker
rand has helped to keep the
market buoyant in comparison
with competitors in the rest of
the southern hemisphere,”
says Frick.
More good news comes
from Malawi where indications
are that tobacco crops will be
very good.