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Southern Hemisphere Association of Fresh Fruit Exporters:

"Container rate rise threatens sustainability"

SHAFFE, the Southern Hemisphere Association of Fresh Fruit Exporters, which represents all major fruit growing countries in the Southern Hemisphere, has added its voice to concerns over container lines' general rate increase of 30%.

Announcing their rise at Cool Logistics in Antwerp last September, CEO of Maersk, Soren Skou, said the move was unfortunate, but necessary as a response to rising fuel prices globally. In an interview after the announcement, Maersk Line's Global Head of Reefer and Special Cargo Trade and Marketing, Thomas Eskessen, defended the rise as creating a level playing field that would not be to the detriment of the fresh produce industry.

"Growers worldwide will face increases," he said. "So, individual growers and exporters can go with confidence to supermarkets and ask for more."

However, Sebastian Kruse, Deputy Secretary General of SHAFFE says the rise is too great and too abrupt to allow the industry to react sufficiently.

"We are not challenging some rate adjustments in container shipping, the point we are making is that a 30% rise in one go is too much and is not easy at all for exporters to cope with."

SHAFFE point out that the total export of their members represents in the region of 8.7 million tons per annum, meaning that the rise is equal to additional shipping costs of $650 million US, or to break it down, a $1.50 increase per 18kg box of fruit.

Such rises, SHAFFE say, severely affect the sustainability and competitiveness of the fresh produce industry, particularly with regards to small operations.

The Association has not given up on the matter, however, and hope talks may help instigate a compromise, as Sebastian explains. "We hope to get negotiations among operators ongoing, with a view to get a better rate negotiated and a better outcome for exporters."

For more information:
Sebastian Kruse
SHAFFE
Tel: +32 2 777 15 80
Fax: +32 2 777 15 81
Email: shaffe@shaffe.net
www.shaffe.net