DCN September Edition 2019

REEFER TRADES
Shipping line MSC claims to have one of the largest and most advanced reefer fleets in the world
“There is also a change in the trade routes… what you saw in
past was a more significant trade route from south to north… but
now it’s more east to west and more growth in inter-Asia markets
which is sucking up equipment from more developed markets and
keeping it there.”
With 9.5% market share of the reefer business globally (Intra
Regional Trade Asia trade excluded), Hapag-Lloyd achieved
throughput of 781,000 TEU in 2018. It also invests in a new reefer
building program, adding 13,420 to its fleet this year.
“Hapag-Lloyd’s reefer fleet is about 100,000 units,” national
reefer and special cargo manager for Hapag-Lloyd, Mehernosh
Bhiwandiwalla, says.
He tells DCN that the biggest trend in the reefer business
globally is the modal shift from conventional refrigerated ships to
reefer containers for perishable goods.
“Is the demise of refrigerated ships going to be accelerated due
to IMO 2020? That would force containership growth quicker than
expected,” he says.
Mr Bhiwandiwalla says IMO 2020 is also a challenge for
shipping lines.
“All the lines are working towards this so that we are ready by
the start date and that is a significant cost to the liner business.
This is mainly reflected in fuel costs and looking at other
technology like LNG or EGCS.”
The successful cost recovery is what Hapag-Lloyd calls the
“marine fuel surcharge,” according to Mr Bhiwandiwalla.
Although he could not provide any indication of what the
surcharge will be, Mr Bhiwandiwalla says the process would be
a “transparent and easy method of calculation” for customers
to understand.
Is the demise of refrigerated ships going
to be accelerated due to IMO 2020?
John Bannister, Seaco
“That trend continues and also the high demand for foodstuffs
due to the growing world population, driven also by the wealthy
middle class in Asia mainly China keeps reefer trade in positive
year-on-year trade,” he says.
Reefer containers offer numerous advantages over refrigerated
ships, mostly through access to the sheer number of containers
and the number of ports that liner vessels visit. In addition, reefers
enable easier transport at the other end, where containers can go
straight from the wharf to markets or businesses.
Mr Bannister says there are question marks over the implications
of IMO 2020 and whether that will cause slow steaming which
would in turn affect the demand for containers.
VIEW FROM AUSTRALIA
From the Oceania perspective, the reefer market is quite strong and
mainly driven by exports, according to Hapag-Lloyd.
“In 2018 we feel the export volume was 560,000 TEU, this
is the volume mainly from Australia and New Zealand,” Mr
Bhiwandiwalla says.
“We are seeing the Oceania market growing positively by 4-5%
annually and expect that trend to continue. The main reefer
commodities continue to be meat, fruit and veg and dairy. We have
seen new strong demand from markets in Asia.
“Where we have seen there has been growth is in exports from
Australia to China, almost 8% over the last few years, due to the
population growth in the middle class in China. They have a great
desire and appetite for Australian fresh produce - meat, wine,
cheese, dairy – and that has continued to grow.”
Richard Fedden, regional VP marketing Oceania at Seaco
says, “Majority of the market in Australia is the 20-foot market.
Domestically we use 1-2% of the [Seaco] reefer fleet but we also
have reefers coming in through carriers like CMA CGM and MSC
who move their reefers into the market.”
MSC
48 September 2019
thedcn.com.au