Sea freight monthly review: June 2019
- Published on 2/09/2019 - Published by BRIGHT Richard
- Free
Informations
- Product(s) : Sea freight
- Rubrique / Thématique : Review and Forecasts
- Country : World
- Keywords : Logistics , Transport
As the summer doldrums took their toll on the charter market, there was some bad and good news for the specialized reefer industry. On a depressing note for operators, the 7-year commercial relationship between Star Reefers and Russian banana charterer the Banex Group came to an end. Star stopped sending vessels back across the Atlantic after discharging in St Petersburg in mid May.
Instead of chartering its own vessels, Banex weekly banana volumes until the end of the year of between 155K boxes and 355K boxes are to be shipped from Ecuador to St. Petersburg on the rival Baltic Shipping liner service. That the volume has not defected to the carriers will come as no consolation to Star Reefers.
Flexibility was the principal reason for the switch. Baltic Shipping vessels already carry more bananas than Banex into St. Petersburg on larger vessels, reducing the unit cost to its customers. Baltic’s existing volume plus the added weekly Banex boxes will allow the operator to come closer to making the US$2.70 per box Banex was reportedly willing to pay, work commercially.
The fundamental problem Banex faces is almost identical to that of the Canary Island tomato charterers Fedex. Much as though both charterers would prefer to load on a reefer, the drop in weekly volumes means that they can no longer justify the luxury!
The good news comes from Asia, where Japanese owner/operator Fresh Carriers Co Ltd. (FCC) confirmed that it had inked in the commissioning of three large newbuilds. The vessels are to be built in the Kitanihon yard in Japan and delivered in the course of 2020/21. FCC operates predominantly in the Pacific, servicing the Philippines to Japan, China and Middle Eastern banana trades as well as covering the New Zealand butternut squash and kiwifruit requirements into Far Eastern markets.
Following the loss of the Meridian specialized reefer service to N Cont, kiwifruit charterer Zespri this year will ship approximately 30% of its volume in reefers and the balance on third party container services. In order for it to be able to continue with this ratio for the long term, Zespri is understood to have given some formal degree of assurance or commitment for FCC in order for the investment to go ahead. The news of the newbuilds is an important fillip for the specialized reefer industry at a time when it faces multiple existential headwinds.
