Hapag-Lloyd Launches Citrus Express Service
2024-06-07
Hapag-Lloyd has collaborated with South African citrus growers to launch the 'Citrus Express' service from Durban and Port Elizabeth ports. This weekly service operates directly from Durban and Port Elizabeth to the Hapag-Lloyd terminal in Tangier. From Tangier, the citrus is transshipped to all destinations in North Europe, the Mediterranean, the United States East Coast, and Canada.
Rogelio Busto, Hapag-Lloyd's Managing Director for South and East Africa, stated that 2,200 reefers have been pre-positioned in South Africa, with the seasonal service offering an average of 700 reefer plugs per voyage. All the containers are equipped with Hapag-Lloyd's LIVE-Reefer intelligent monitoring technology. This technology transmits live data from a client's reefer container directly to their computer screen, enabling them to monitor the internal temperature and track the progress of the cargo. It can also adjust the temperature in the container and the mix of gases for controlled atmosphere conditions, which are used for fruits such as apples, pears, apricots, mangos, tomatoes, bananas, and pawpaws. Starting from June 1, there will be 12 sailings, with Hapag-Lloyd assessing the success of potential expansion. "We are in it for the long run," Busto said. He described the establishment of the service as a partnership between citrus growers and Hapag-Lloyd. The line has pledged to supply and expand its service as needed, while the citrus growers have committed cargo. Hapag-Lloyd introduced the service after being approached by the Citrus Growers Association of South Africa (CGA) and individual growers. A lack of capacity was hindering the growth of South African citrus exports. A third line offering a reefer service to Europe would also increase competition among the shipping lines. Busto says this request aligns with Hapag-Lloyd's strategy to expand its African reefer business.
Justin Chadwick, CEO of the CGA, stated, "The citrus industry and the broader economy need as much access to shipping as possible. In securing market access and more streamlined logistics, South Africa could very well increase its citrus exports with 20 million 15kg cartons of citrus in the coming season." The CGA aims to increase exports by another 100 million cartons by 2032.
"At the same time, we are helping them to deal with the operational challenges," says Busto. He mentioned that the local Hapag-Lloyd teams in Durban and Nelson Mandela Bay had been bolstered to provide the necessary support, in line with the company's five-pillar Strategy 2030. The pillars include ongoing investment in the fleet and service network; remaining among the top five global container lines and strengthening its presence in key markets, including Africa, India, Southeast Asia, and the Pacific trade; providing an on-time delivery rate of more than 80%; reducing greenhouse gas emissions by one third by 2030; and using technology to be a top-performing carrier.