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UPDATE - REEFER AND SAFMARINE - JULY 2009
Status update as provided by Ian Fairlie, Safmarine's Africa reefer manager (as at July 22, 2009).
- Reefer volumes ex SA: Volumes year to date 09 vs 08 are slightly down and there are numerous reasons for this. One reason is the lower than expected citrus crop and the other is the reduced demand from exporting markets. Demand is likely to be down as a result of the global economic downturn.
- Bucking the 'negative' trend - reefer exports out of South Africa - are the exports of exotics from South Africa. Contrary to expectations, volumes for exotics/top end perishables are up on 2008 volumes. The opposite has happened to 'cheaper' perishables - their volumes have reduced compared to 2008. We had expected the high end perishables/exotics to be negatively affected by the global economic situation but it appears the opposite has happened.
- The impact of the global economic downturn has been felt by the reefer export sector although, globally, reefer volumes seem to have been impacted less than dry cargo. However, from an African perspective, reefer volumes are down compared to dry volumes ie the global economic downturn has had more of an impact on the African reefer market than on the dry export market. We expect this negative trend to continue for the foreseeable months although demand for West African fruit seems to be higher than in 2008.
- In terms of new services or service upgrades benefitting reefer shippers: In February 2009 Safmarine upgraded the Intermediary service on the Europe to South Africa trade to provide a weekly Reefer Express service and in July 2009 Safmarine introduced the Safari 3 service which offers South African reefer exporters the opportunity to export their cargo to the Far East from Maputo instead of Durban. The service also allows SA exporters to export to Europe and the Med via the hub port of Tanjung Pelepas. The service is particularly attractive to citrus producers in Mpumalanga wanting to take advantage of lower landside logistics costs and want an alternative should the port of Durban be congested during the peak season. (See Press releases on both the Reefer Express and Safari 3 Services - in Media Centre)
- Safmarine expects environmental issues/concerns to have more influence on the reefer shipping business and on sourcing programmes in general. Increased consumer interest in environmental issues has the potential to dramatically alter purchasing behaviour. (See Media Centre for more details on the Carbon Journey of Colors Fruit Holdings, a South African-based fresh fruit exporter. The purpose of the journey was to determine - proactively, factually and credibly - what impact the movement of fresh fruit from South Africa to the UK had on the environment - and then to take the necessary steps to reduce that impact.)
- Containers have become the most popular mode of transport for perishable goods. Today, more and more perishable cargo - previously airfreighted or trucked - is being shipped, by sea, over both long and short distances, in specialised reefer containers. For example, citrus - a commodity which is in constant demand and not 'time sensitive' ie not affected by the (sometimes longer) seafreight transit times - is increasingly being shipped in containers. For a supermarket requiring a constant supply of citrus, it makes no difference whether it takes three days by truck or seven days by sea, as long as the supply is constant.
- The 'supermarket container' - whereby different perishable items are shipped in one container - also continues to be an attractive option for shippers wanting an efficient and cost effective mode of transport, particularly if the shipping service offers short transit times. The 'supermarket container' is set on an average temperature and the produce selected has the same average in terms of shelf life.
- Capacity on conventional ships has reduced as a result of limited investment in new reefer ships; this situation has benefitted the containerized sector.
Background:
Safmarine and the REEFER MARKET
- Shipping perishable cargo is core to Safmarine's business; we have a 'passion for perishables'.
- Our 'traditional' reefer trades are those between South Africa and northern Europe and the Mediterranean.
- We also carry significant volumes to the Far East, Middle East, USA and Canada from our traditional reefer markets such as Africa, South America and South East Asia.
- Safmarine believes a large of part of its success in the reefer industry can be attributed to the launch of its specialist reefer service called Freshcare. Safmarine launched Freshcare in 2002 in response to customer demand for a dedicated service comprising experienced individuals who could advise and provide practical information on packaging, loading and carriage of chilled and frozen cargoes etc. FreshCare is a 'one-stop-shop' service for shippers of temperature sensitive commodities in need of local expertise.
More about reefer Shipping and the Environment:
- Shippers concerned about the carbon footprint of their goods often prefer to use container ships as opposed to road or airfreight because the per unit carbon emission/footprint tends to be lower than if transported by air or road.
- Safmarine has, since 2004, invested in new, more fuel-efficient, post-panamax tonnage with increased reefer capacity. We also ensure that our containers are fitted with the most fuel-efficient compressors and environmentally-friendly refrigerants available.
- Our QUEST (Quality and Energy efficiency in Storage and Transport) programme helps to improve the power consumption of our reefer fleet and reduces the emission of greenhouse gasses. By optimising the cooling capacity of the reefer unit, we can save between 15 and 35 percent of energy requirements. (Refer to CSI/Environmental brochure on Safmarine Media Centre - see under Brochures category-for more details).
Why reefer (refrigerated containers) are a popular mode of transport for shipping perishables ....
- Containers offer better end-to-end transport solutions, with convenience beyond the port.
- Containers minimize the need for handling perishables, thereby offering better protection of cargo and an unbroken cold chain from producer to supermarket.
- Lower landside costs and the benefits of new, sophisticated container technology add to the attractiveness of shipping perishables in containers versus bulk shipments in refrigerated vessels.
- A wide range of perishable produce can be shipped in containers, including deciduous, citrus and exotic fruits (including avocadoes), vegetables, flower bulbs, meat, seafood, nuts etc
- Temperature ranges differ from produce to produce. The technology deployed in today's reefer containers allows temperature to be maintained to the centigrade - which in turn allows shipping lines to carry produce at the temperature most beneficial to a particular product.
In general, the advantages offered by modern reefer containers include computer monitoring, optimal insulation and reliability - as well as sophisticated cooling technologies.
ends
July 2009
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