Empty containers a major challenge

South African exporters face huge challenges in keeping containers in the cycle earning money rather than having them stand around empty. The process of moving empty equipment from idle locations in the system to areas where they can earn freight rates, alone accounts for 20% of operational costs. “Empty containers are a headache as we have to carry the cost burden of moving them around. It is a major problem in our industry that adds significantly to operational costs,” says one fruit exporter in the Western Cape. Especially in the reefer industry it is of increasing concern. “The majority of reefers arrive in the country empty. They come here specifically to be filled for export, but the exporter is carrying that cost of getting it to his packing plant.” The imbalance in exports and imports contributes significantly to the general situation around empty containers, says industry stalwart, Mike Walwyn. “In Cape Town, for example, at least a third of the traffic is empty containers.” Another concern is the availability of containers. With volumes being down globally, even less containers have been making their way to South African shores, says Walwyn.