Outlook positive despite adverse weather

Following the

addition of 30 000

new reefers last

year, Maersk

Line has prioritised

further investment in reefer

containers and research and

development for the year

ahead.

“The overall outlook is

positive in South

Africa,”

said Graham Schrieder,

Maersk Line southern Africa

reefer manager. “This is

despite a challenging 2016

with lower crop sizes due

to the drought and the heat

wave. Markets, however,

have mostly responded well

with good prices – especially

in light of lower production

and stronger demand. There

still is a strong drive for

more plantings across all the

commodities.”

How the weather behaves

going forward through winter

and into spring will be a

decisive factor.

“What is clear is that South

Africa cannot afford another

drought. 2017 will already

be affected due to this year’s

weather – but the full extent

will only really be seen next

season,” he said.

According to Schrieder

the shipping line is also in

the process of structurally

aligning the business to

be even more focused and

dedicated in the coming years.

“In South Africa we have

a dedicated reefer desk,

specialists in the industry

to get the products to the

market as quickly as possible

and in the best condition,”

he said. “We are investing

in extra tonnage and more

plugs to support our clients

in the peak weeks to get all

their cargo away. Especially

as conventional volumes are

reducing and have been over

the last few years.”

And with more cold

treatment destinations being

served, the line is adjusting its

capacity to cater for the trend.

“We see and hear from

the market that more and

more countries will become

cold treatment.”

Commenting on South

Africa’s challenges, Schrieder

said Citrus Black Spot (CBS)

remained a concern as well

as increased cold treatment

markets. “Both continue to

add risks and costs to the

industry,” he said. “Weather

will continue to be a South

African as well as a global

challenge as crops have been

negatively impacted due to

weather all over the world. In

South Africa we are expecting

volumes to decline for the rest

of the season compared to last

year – Valencia citrus taking

the biggest hit – especially

from up north where the

drought has hit the hardest.”

INSERT & CAPTION

We are investing

in extra tonnage

and more plugs to

support our clients in

the peak weeks. “– Graham Schrieder