China Love of U.S. Cherries Fuels Boom for Chilled-Cargo Ships: Freight

[dkf]

Container lines struggling to make money hauling Chinese-made goods to the U.S. are experiencing a surge in lucrative shipments of meat, fruits and vegetables in the other direction.

A.P. Moeller Maersk A/S and Neptune Orient Lines Ltd.’s APL unit have led a 46 percent jump in refrigerated-container shipments to China from the U.S. this year, according to Piers data, as higher wages and quality concerns stoke demand for imported food. The need for specialized containers, known as reefers, means rates are about four times higher than those for carrying a standard box from Shanghai to Los Angeles.

“There’s an opportunity in the reefer market,” said Tim Smith, the North Asia head at Maersk Line, the world’s largest container-ship operator. In China, “the level of disposable incomes has increased a lot, so we think they’ll want more high- quality foods and perishable products,” he said.

Copenhagen-based Maersk’s shipping arm plans to invest more than $1 billion in refrigerated containers over two years, Smith said by e-mail. Revenue from chilled cargo may rise more than 10 percent next year after “major” growth this year, he said.

http://www.bloomberg.com/news/2011-10-19/china-s-love-of-sleeping-u-s-cherries-fuels-chilled-cargo-surge-freight.html