Reefer rate rise causes concern for exporters
Rates for refrigerated containers from New Zealand to Asia are set to rise between 25 and 30 percent next year, news that has caused concerns for exporters, according to reports in New Zealand's media, Seatrade Asia online reports.
"Not only are these significant price increases but the fact there is uniformity in the price increases from all the lines for ships going from New Zealand to Asia is of concern, " said Catherine Beard, executive director of business advocacy group Export New Zealand.
The rate rise translates into about $750 per twenty-foot equivalent unit (TEU), with Beard saying that "could weigh heavily" on smaller exporters, citing one who would see and extra $100,000 in transport costs.
While Maersk is the only company to have actually raised its rates, Greg Steed, chair of the New Zealand Shippers Council, said other shipping lines had indicated they would increase their rates by the same percentage.
"New Zealand is a reefer nation," said Steed, noting about 40 percent of exports from the country's Fonterra dairy co-operative of around 10,500 farmers used reefers, and the country's kiwifruit industry was virtually all refrigerated trade.
Both the Shippers Council and Export New Zealand have called for greater transparency in the shipping industry, and a Maersk representative was quoted as saying that while there was "operational co-operation" to keep services regular, "there's certainly no collusion."