Hong Kong-based OOCL is applying a peak season surcharge on reefer containers moving on its westbound Transatlantic Gateway Express (TGE) service between Europe and Montreal, Canada. USD400 will be added to the cost of moving a reefer container on this trade, effective from November 12, 2009.

        In justifying the hike, the Chinese liner said that demand for reefer plugs on westbound sailings was outstripping supply, due to the onset of the winter peak season. The surcharge was needed in order to maintain high levels of customer service with a minimum of cargo disruption.

        The trade has seen significant capacity withdrawn in response to tumbling volume, which has fallen by as much as 30% across all cargos on the eastbound haul over the first nine months of the year, according to the European Liner Affairs Association (ELAA). OOCL together with its German partner Hapag-Lloyd withdrew 2,800TEU a week from the Canada trade when they joined forces with Geneva-based MSC in August.

        However, by contrast the reefer trade has remained relatively strong, falling just 2.3% on the westbound leg between Northern Europe and Canada in the five months between April and August, according to ELAA.

        It is therefore quite conceivable that the cull in volume will have put a squeeze on reefer plug availability, so explaining why the Chinese liner has chosen to target this particular trade with the surcharge.

        Other lines, such as CMA CGM have been less discriminating in application of their reefer surcharges.

 

                                                                                                                                                                                                     Source:ci-online