China's Reefer Situation Improving

March 20, 2020

© donvictori0 / Adobe Stock
© donvictori0 / Adobe Stock

Chinese port workers have made progress to move a logjam of refrigerated containers that has disrupted supplies of fresh and frozen food and pushed up freight rates outside China amid the coronavirus outbreak

French container carrier CMA CGM told customers on Friday that the reefer plug utilization has improved in Chinese ports, and almost all reefers diverted to other ports are in the process to be loaded back to their final destination.

CMA CGM said it would cancel the port congestion surcharge (PCS) for reefer exports to all Chinese ports loaded from March 23 onward.

German rival Hapag-Lloyd also noted that reefer plug availability has improved, congestion in Chinese ports has eased, berthing operations have improved and the terminals have resumed to normal working conditions.

Hapag-Lloyd said it no longer must divert cargoes on a large scale and that it canceled its reefer adjustment surcharge (RAS) for reefer cargoes destined for mainland China ports effective March 11.

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