Maersk Line’s
proposal to hike reefer
(refrigerated containers)
rates by US$1 500/TEU
in the coming season
could have a devastating
effect on the fruit
industry, says CGA’s
Justin Chadwick.
“Transport is 70% of
our costs, so an increase
of that magnitude (some
30%) will be disastrous.
“It will even see some
companies going out of
business.”
Questioned about what
the competitive container
lines were likely to do,
Chadwick said that some
had hinted that they
would follow suit.
The association is
also doing an analysis
to calculate the volumes
that can be put on
dedicated reefer lines.
“We are also looking at
the legal aspects of this
increase, the anti-trust/
competition rules, for
example” Chadwick said.
“Maersk has kept reefer
prices down over recent
years, and this put a lot
of the dedicated reefers
out of business.
“Out legal guys are
looking at this as possible
‘predatory pricing’ and if
there is any contravention
of the anti-trust rulings.”
CAPTION
Justin Chadwick ... looking at
‘predatory pricing.’
