A contract signed four years ago has helped Universal Reefers to win back the shipment of South African citrus fruit to the US from the rival Anlin-Seatrade partnership.
Gerrit van der Merwe, chairman of the Western Cape Citrus Producers’ Forum (WCCPF), has confirmed to Fruitnet that although the contract for this year’s shipments has not been signed yet, it is just about a done deal.
The Anlin-Seatrade partnership will lose out for the 2012 season after doing an exceptional job during the past two years by all accounts.
Van der Merwe says Universal Reefers had invoked its first right of refusal in terms of a contract signed four years ago.
“They also matched the competition’s freight rates, thus the contract has to be honoured,” he told Fruitnet.
The existing contract between Universal Reefers and the WCCPF was originally signed after a protracted dispute between the shipping company and exporters was settled some years ago.
The incident occurred when the sterri programme on one of the decks of a vessel carrying South African citrus to the US failed, resulting in huge losses.
However, one year into the new contract, the WCCPF called for new tenders and Universal Reefers decided not to use its first right of refusal when it could not match the Seatrade rates.
The same happened last year and the Anlin-Seatrade partnership continued with what was perceived to be a very successful shipping operation.
Van der Merwe has confirmed to Fruitnet that the existing contract with Universal Reefers has two seasons to go.
The fact that Universal Reefers pulled out all the stops this year to regain the contract indicates that it will do the same next year.
The WCCPF will therefore only probably be able to seriously consider an alternative for the 2014 season.
The full report will be published in the June//July issue of Americafruit Magazine.
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