Proposed reefer hikes could have 'devastating' impact

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.’