b'deCembeR 21, 2020 - jANuARy 24, 2021 NOrth AmericAs trANsPOrtAtiON & LOGistics NewsPAPer 15Reefer trades resilience stands out during pandemicThereeferbusinesshasbeencalledpandemic proof as demand has continued to grow through-out the Covid-19 crisis. But there are a number of underlying catalysts driving the reefer market that grant it some immunity from economic vicis-situdes as Greg Tuthill, CCO of SeaCube, explains in an interview.By George Lauriat, AJOTThe reefer businesscon- says,Ithinkthatthereefer tainers moving perishable freightmarket has been very resilient tohas been remarkably resilientmarketpullbacksThegrowth during the Covid-19 pandemic.has been consistent. I think [the] The business has been describedkey catalysts continue to be driv-aspandemicproofasithasers for the reefer market, [which continuedtogrowduringtheinclude]populationgrowthand Covidcrisis,despitethelock- thehealthierdiets,sustainable downstoconsumersanddis- sourcing, things like that. Port of Virginia is only US East Coast stop for ruptionstomanufacturers.OfOf course, the pandemic has course,thisresilienceisntcreated its own unique pattern ofreworked Europe-to-Caribbean vessel servicereally new. During other periodsdemand. Tuthill notes, replen-ofeconomicdownturnlikeishment cycles may be shiftingThe Port of Virginia welcomed the HAM- Kingston, Jamaica, where it will be loaded onto the financial crisis of 2009thealittlebitbecausepeopleareMONIA EMDEN, the first container ship in a newother vessels servicing the Caribbean.reefer business also thrived andstaying home and theyre eatingvessel service that gives the port a direct link toWe have not had a service that called Kings-was dubbed recession proof. healthier and theyre also kindbothNorthernEurope,animportantmarketforton and the result was most poultry exports to the Theresnodoubt,demandof focused on making sure that,imports, and the Caribbean, an emerging marketCaribbeanmovedotherUSEastCoastports, for perishables and in turn, thesincetheyareworkingfromfor export cargo. Reinhart said. Now with this direct service we are reefer containers to move them,home,theyretryingtodotheVirginia is the only US East Coast stop for thisgoing to become very competitive in this area of hasbeenrobustoverthepastrightthinginpreparingbetterweekly service, called the Caribbean Express Ser- business. This is an important opportunity and one pandemic year. Some of the rea- foods, which is kind of tied tovice, or CES; it is operated by ocean carrier Hapag- we have been pursuing for some time. Hapag Lloyd sonsforthesectorsresiliencethe perishable market, and thatsLloyd, a long-time port customer. The CES serviceis a valued customer and we appreciate its decision aresurprisinglysimplewhileacross the globe. vessels will call three ports in Northern Europe,to make The Port of Virginia the exclusive East other factors reflect complex andTuthill explained the changescome directly to Virginia and then sail to the Carib- Coast call for this service.often long term market trends.in dietary habits also plays intobean from here. The port rotation (in order of call) for the CES Butitisacomplexbusi- alargertrendinglobalsourc- Thisisanimportantdevelopmentbecauseitis London, Rotterdam, Antwerp, Virginia, Kingston, ness and matching demand withing: We have witnessed there isgives cargo owners quicker access to their cargo, bothWillemstad, Oranjestad, Santa Marta, Puerto Limon, equipmentischallenging.Partmore sourcing from more loca- on the import and export side of the equation, saidCaucedo,andLondon.Therewillbesixvessels of the reason is the nature of thetions than ever before in terms ofJohn F. Reinhart, CEO and executive director of theranging in size from 2,500 TEUs to 3,000 TEUs.businessitselftemperature-produce. And one, because whatVirginia Port Authority. We are seeing some carri- Since May, the port has added four new, weekly sensitive commodities are wideused to be seasonal now is yearers adjust their port rotations to take advantage of ourvessel strings that include the CES and a last-out in range and include everythinground, and two, I think the grow- efficiency. We are working the vessels and moving thecall with ocean carrier MSC on its new INDUSA from everyday fare like bananasing regions have expanded. cargorecord amountsin record time. service. That service connects Virginia with South-and other fruits and vegetablesAnd as Tuthill explains thereTheservicesimportcargofromNortherneast India, Sri Lanka, and Bangladesh.andmeatsandfish,toeso- areotherrelateddietarytrendsEurope will move by rail to the ports MidwestOur performance is attracting attention and teric chemicals and yes, highlypushing reefer expansion, addingmarkets and by truck throughout the Mid-Atlan- providing benefits to our customers [the ocean car-importantpharmaceuticalslikethatalsotiesintosustainabletic region. On the export side, the service will beriers] and to the cargo owners moving their goods the Covid-19 vaccines.seafoodsourcing,becausenowmovingagrowingamountoffrozenpoultrytoover The Port of Virginia, Reinhart said. youvegonefromfishstocksACL AJOT_SailSchedule_2020_ACL2/27/209:33 AMPage 1r eeFerB UsiNess beingnaturaltomorefarm-Greg Tuthill, Senior VP anding, which is also creating moreOCCOofSeaCubeContainer,amovement in the reefer trades. ONNEESSHHIIPPWoodcliff,NewJerseybased lessor of containers and equipmentl iFeC yCle oF ar eeFerwith a niche in the reefer busi- C oNtaiNerness thinks there are a number ofSeaCubewithover200 reasons why the demand for reeferdepots located around the globeC onCo nttaaiinneerrss,,RROORROO,,BBrreeaakkbbuullkkCCaarrggooequipment has resilience, not onlyhas equipment available in most throughthecurrentpandemichigh usage areas. This helps mit-but during other periods of eco- igate repositioning, We have a nomic downturns.prettybalanceddoubleman-Tuthill, remarking of the har- agementprocessonlybecause diness of the perishable sector,wetrytohaveredeliveries take place where theres higher demand. It doesnt work out all the time like that, but that at least mitigatesorminimizesreposi-tioning And that works to our favor, of course. And I think its taking place in the lesser marketRORO Customer Servicemore and more because then weA SERVICE AL1 SERVICE AL2 SERVICE 877-918-7676as an industry dont end up withCuto Friday Cuto Thursday Cuto Monday Export Customer Serviceequipment in the wrong place. FROM NEW YORK LOLO RORO LOLO LOLO 800-225-1235Most of SeaCubes custom- TO Transit Time Transit Time Transit Time Transit Time Export Documentation ers are the big liner containershipANTWERP 1620 18888-802-0401DUBLIN 12 shippingcompanieslikeMSC,BELFAST 13Import Customer ServiceCMA , COSCO, ZIM, EvergreenGTEBORG 21888-802-0403andONE(JapansintegratedHAMBURG 13 17 15 22 LogisticscontainershiplinecomposedofLE HAVRE17 866-821-7449Credit & CollectionsMOL/NYK /K-Line). AccordingLIVERPOOL 9 13 888-225-7747Greg Tuthill, Senior VP & CCO,(RESILIENCEcontinued onLONDON GATEWAY20 19SeaCube Container page 19) ROTTERDAM11 20'