From January 1, 2013, Maersk Line brings into force a rate increase to refrigerated containers and the increase will be added to the freight component of the cost of shipping a container. This rate increase will be felt throughout the world and Fiji. The line carries a significant volume of Fiji exports such as frozen fish to Asia, Europe and the US; it also carries some manufactured stuff to Australia, New Zealand and the Pacific Islands. The increase will be US$ 750 per twenty foot reefer and US$1,500 per 40 foot reefer container. Mr. Jeffrey Lin, Chief Operating Officer of Shipping Services, observed on the rate increase that the return of investment by Maersk in refrigerated containers in general was far from satisfactory and he added: “We are very cognizant of the fact this is a big call and we expect to sustain some loss in market share, but this is a strategic move from a global perspective. When asked to comment on the possible reaction of the other shipping lines to this rate increase, he simply replied: “That is entirely their call. We can’t do too much about that but I dare say that they are also facing similar issues and it would not surprise me in the least that they are also reviewing revenue and cost structures”.A small leak will sink a great ship; a big loss will sink a trade.
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