Reefer charters send strong message to TPT

The decision by some of South Africa’s top fruit exporters, including Dole and Capespan, to charter conventional reefer vessels for the upcoming windy season in Cape Town has come as no surprise to the industry. Some 14 exporters have contracted a charter company for four conventional reefers to move fruit (mostly grapes) from Cape Town during the peak season later this year – an estimated loss of around $4 million in freight and another R4 million in tariffs for Transnet Port Terminals. While not considered to be a massive loss to the container lines that traditionally transport fruit, it is unwelcome and speaks to the massive loss of exporters’ confidence following their losses during the grape season in Cape Town this year when the port came to a near standstill. Operations at the Cape Town Container Terminal (CTCT) have been in the spotlight for some time, with industry having voiced its concerns regularly at the decision by TPT to invest in rubber tyre gantries (RTG) only. This saw the port having to cease operations at wind speeds of around 60km/h which resulted in it being wind bound for days on end between November 2012 and February this year. “Growers and exporters of grapes have a small opportunity in the market to make decent returns on their investments and hard work. Sadly for them, this window of opportunity also happens when Cape Town as export port is severely impacted by the South Easter,” said Dirk Hoffmann, Safmarine Southern Africa cluster manager. “The decision to charter vessels for a four-week period to ensure their cargo is shipped for the European market is understandable.” Fruit exporters have made it clear they will not make themselves vulnerable to the delays experienced in Cape Town and the decision to charter vessels is the solution. According to Iain McIntosh, general manager of sales for Mitsui OSK Lines, container lines have been in constant talks with Transnet over the situation as it was already predicted in January that fruit exporters would move their business if the situation was not addressed. “The decision was probably inevitable given the damage in the first quarter of 2013.” While TPT realised the severity of the matter and is now bringing in reach stackers to assist the RTG operations that will see the port being able to work in higher wind conditions, many fear it may be too little too late. One industry expert, who preferred to not be named, said the chartering of the reefer vessels could be seen as a very clear message being sent to TPT. “The exporters are happy to use the container lines. This is more of a warning to TPT than anything else. They are telling the port to get its house in order.” Shipping lines have welcomed TPT’s decision to bring back straddle carriers. “It is encouraging that TPT is taking action to improve landside efficiency which, although too late for the early part of the grape season, will assist container lines for the remainder of the 2014 fruit export season,” said Hoffman. INSERT & CAPTION Growers and exporters of grapes have a small opportunity in the market to make decent returns on their investments and hard work. – Dirk Hoffman