World News
World Could Face Acute Reefer Shortage
A Maersk Line agent says that world markets could face an acute shortage of refrigerated cargo containers within the next five years as demand for imported meats and seafood rise while low cargo rates make operating the reefer units unappealing for shippers, according to the Fiji Times.
Maersk Line Fiji agent Barbara Wong-Nasara said falling freight rates and higher operational costs have made the market difficult.
"Maersk Line [has] put billions of dollars worth of investment into research, development and production of thousands of refrigerated containers each year, far more than any other shipping line in the market," Wong-Nasara said.
"However, the return on investments have been far from satisfactory."
Jeffrey Lin, chief operating officer of Shipping Services for Maersk Line, said a planned rate hike may cost the company some business.
"We are very cognisant of the fact that this is a big call and we expect to sustain some loss in market share, but this is a strategic move from a global perspective that is necessary" he said.
Lin said the company does not know how its competitors will respond to the change.
"We can't do too much about that but I dare say that they are also facing similar issues and it would not surprise me in the least that they are also reviewing revenue and cost structures," he said.
Maersk Line is the shipping division of A.P. Moller-Maersk (Maersk), which has said the industry cannot afford a price war and that it had been losing money on some routes due to low rates.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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