Fruit industry could be facing massive shortfall in export capacity

Investment cutbacks on reefer containers could hit the fruit industry with a massive shortfall in export capacity, according to Emile Engela, Cape Town-based GM seafreight for Lonrho Logistics (formerly Grindrod PCA). This after Thomas Eskesen, senior director of reefer management for the AP Moller Maersk Group, told FTW recently that Maersk had decided to stop its investment in new reefer equipment for 2013 because it’s so capital-intensive. INSERT ‘Citrus exports alone would take an almighty thumping.’ The Maersk figures show that it has a reefer market share in excess of 20%, and that this restriction in acquiring new equipment is going to lead to a supply/demand gap in the market. On its own estimates, if Maersk Line does not recommence investment, global reefer container demand will outstrip supply by 9% by 2015. Apply that general average to SA fruit exports, and suddenly they turn sour, Engela told FTW. Citrus exports alone would take an almighty thumping, he added, pointing to this year’s crop resulting in about 100 million cartons of export fruit. “Although some still went breakbulk, that would mean more than 60 000 12-metre containers of export fruit this season,” said Engela. “Take about 10% dropoff in reefer boxes available, and we’d be some 6 000 40-foot boxes short of demand – a pretty massive amount.” Add in all the other perishable exports and the damage done to the SA export industry would be ruinous, he added.