South Africa– Reefer Imbalance Surcharge (EIS) Update

Over several months, we have been reviewing our equipment supply of refrigerated equipment in all trades due to a variety of changes in global markets over the last 12-18 months. Numerous events over this time have radically changed equipment flow patterns and have resulted in an enormous shift in supply and demand.  

In order to ensure adequate container supply, we have had to make many changes to our global equipment flow planning to combat this which does come at great cost even with investment this year in a sizeable amount of new 40ft high cube reefers.

Despite the pressure we fully intend to keep open our South African weekly services to export markets to support what will be a large peak season for fruit exports over the next few months. 

In this respect the SAECS weekly mainline service is being further supported by additional capacity from Port Elizabeth to Algeciras through introduction of a weekly Eastern Cape Reefer (ECR) service from late May to early September. This requires a large upsize injection of more refrigerated equipment to support this as well as the increased cost provision of the service. SAECS also have introduced a 9th vessel to the SRX service to support a reliable schedule to ensure on time departures from both Durban and Cape Town.

We are also maintaining our key weekly service from Durban to Asia as well as looking at further ways to support the Middle East product against the backdrop of India and South Africa large reduction in other trade cargo volume. 

In order to support this network and the flow of refrigerated equipment we therefore effective 01/Jun 2020 will introduce an Equipment Imbalance Surcharge (EIS) of
 
•    US$ 420 per 40ft HR (US$ 210 for 20ft Reefers) 

The EIS surcharge will be applicable for all export refrigerated cargo from South African main ports to all export destinations. 

We regret that we need to impose this charge currently, but it is to safeguard supply of refrigerated equipment in this market. We will update any further product and supply changes as they happen.

If you have any questions do not hesitate to contact your local sales office. Contact details can be found on our website https://www.one-line.com.