Reefer box shortage may restrict world trade in produce

THERE are concerns that a worldwide shortage of refrigerated containers could limit imports of fresh produce this year, reports ThePacker.com, of Kansas City, reporting on a recent Las Vegas produce convention.

Orders for new refrigerated containers have increased this year, but shipping companies remain reticent about the economic outlook, Thermo King global service director Arlo Eslinger told delegates attending the United Fresh Produce Association's annual convention.

"The shipping companies don't want to overreact," Mr Eslinger was quoted as saying during a panel discussion. "They realise there's a shortage. But it's still too early to tell" if the economic recovery will continue.

Thermo King makes reefer units for trucks, rail cars and ocean shipping containers.

"Business is definitely picking up in 2010," Mr Eslinger said. "It started picking up in late 2009. Is it going to continue is the million-dollar question."

The report noted that orders for new refrigerated shipping containers totalled 40,000 to 50,000 in 2009, compared with about 100,000 in 2007.

"Everybody realises there's a shortage of containers," Mr Eslinger added. "But last year, no one was replacing equipment."

TNT says volumes back to old time highs in recent weeks

NETHERLANDS-based express delivery giant TNT has reported a 54 per cent year-on-year increase in operating profit to EUR251 million (US$324 million) in the first quarter drawn on revenues of EUR2.74 billion, a rise of 12.4 per cent.

The increase was attributed to higher revenues from its express division as well as a steady contribution from mail.

Said CEO Peter Bakker: "In recent weeks, volumes have almost returned to levels seen in the more normal trading period of first quarter 2007, though some customer feedback indicates that this is partially driven by re-stocking of supply chains."

The UK's Transport Intelligence said that TNT expects continuing growth with some recovery of weight per consignment with most growth coming from international markets.

(Source: www.schednet.com)