Reefer shippers switch to conventional vessels

The first of four conventional reefer vessels chartered by some of South Africa’s top fruit exporters arrived in Cape Town recently. Some 14 exporters, including Dole and Capespan, earlier this year announced their decision to charter conventional reefer vessels for the upcoming windy season in the city. This follows massive losses incurred during last year’s grape season when the port came to a near standstill due to wind. In an attempt to avoid the catastrophe of last year – when the port stopped operating its rubber tyre gantries (RTG) at wind speeds of 60km per hour, effectively bringing operations to a halt for hours on end – it has re-introduced straddle carriers to run a joint operation. “We expect to see a vast improvement during this windy season in comparison to last year," said Mike Walwyn, chairman of the Port Liaison forum of the Cape Chamber of Commerce. Six second-hand straddle carriers from the Port of Durban were delivered to the Cape Town Container Terminal earlier this year after ongoing complaints that the RTGs were just not coping in the windy conditions. One of the major issues between November 2012 and February this year was that operations ceased at wind speeds of around 60km/h, which resulted in the port being wind-bound for days on end. This situation informed the exporters’ decision to charter conventional reefer vessels rather than rely on traditional container lines to move their fruit – a decision that will result in an estimated loss of around $4 million in freight and another R4 million in tariffs for Transnet Port Terminals. Walwyn said while major improvements had been made – not just in terms of introducing straddle carriers but also in operating the RTGs in heavier winds of up to 80km per hour – a more permanent solution was needed for the wind problem at the Cape Town port. “A wind terminal proposal was drawn up by industry role-players and delivered to Transnet authorities some time ago, but there is no word yet on whether this will be accepted or if there are other plans in the pipeline to address wind. The straddle carriers, while they will make a difference, are really only a part-time solution.” Four new straddle carriers will be delivered to the port in January. In the meantime fruit exporters have said if port authorities cannot ensure a service where their product gets to market on time they will continue to charter reefer vessels. INSERT & CAPTION A wind terminal proposal was delivered to Transnet authorities some time ago, but there is no word yet on whether this will be accepted. – Mike Walwyn INSERT $4m TPT's freight revenue loss from switch to conventional vessels