London, August 28, 2018 – The increasing demand on reefer traffic will bring new challenges and opportunities to the industry, including the container shipping and ports sector.
Gerry Yim, CEO of Hutchison Port Holdings Trust will address the 4th Cool Logistics Asia, in Hong Kong 5-7 September, in the same session as Jeremy Nixon, CEO of Ocean Network Express, the world’s sixth largest container operator.
Cool Logistics Asia will be held alongside ASIA FRUIT LOGISTICA, the leading event for the fresh produce industry in Asia, now entering its 12th year with over 13,000 visitors from 70 countries.
“We are proud to welcome Mr Yim, as a speaker at Cool Logistics Asia this year,” Alex von Stempel, Managing Director of Cool Logistics Resources and Freshwater Logistics said.
Ports as the integrator of the supple chain
“While liners are our main customers, Hutchison Ports is keen to extend the reach to stakeholders along the supply chain building a logistics ecosystem,” Gerry says. “Exhibiting at Asia Fruit Logistica is an essential step to understand port users’ needs in the reefer market and share how our port network can serve as the propeller of global fruit trading and the gateway to China”.
Hutchison Ports is the world’s leading port network, with operations spanning across 52 ports in 26 countries. The core operations of Hutchison Ports in South China include Hong Kong and Shenzhen, supported by river port facilities in the area.
With over 250 weekly vessel calls covering all major fruit trading markets, Hutchison Ports South China play a vital role as the global reefer perishables trading hub and gateway to China.
Backed by the Greater Bay Area (GBA) hinterland
Hutchison Ports South China, strategically located at the heart of Asia and backed by the Greater Bay Area, is the largest port cluster in the South China region. With over 9,000 reefer plugs available, it handled over 715K TEU of reefer volume in 2017. It is also supported by a vast hinterland with over 67M TEU of throughput and annual GDP of US$1.3 trillion.
Ports have been and will continue to be a vital link in the comprehensive chain of national and regional economies. As Gerry puts, “ports are not homogeneous and we differentiate through shipping service network, inland connectivity, ability to understand customer needs and integrate the logistics chain.”
Digitalization as a differentiator
Hutchison Ports’ flagship terminal – Hongkong International Terminals Limited (HIT), is offering electronic release order (e-RO) solution to digitise shipment process and facilitate fast, convenient, secured online exchange of import documents and instructions for paperless release of import laden containers at terminals.
As some of the ocean carriers are now seriously looking at integrating remote reefer monitoring solution into block chain applications. Hutchison Ports South China will invest in the latest remote reefer monitoring solution, which is designed to provide real time monitoring of reefer containers and is expected to improve data visibility, reduce human error and damages, as well as to maximise reliability and thus freshness of fruit produce.
A case in point is the increasing importance of food traceability, with customers demanding ever greater transparency. Hutchison Ports South China is therefore prepared and technically ready to participate in blockchain initiatives that can bring value to the industry.
To stay ahead of the game Hutchison Ports South China are far more than gateways for shipping and are likely to perform a key role in developing tomorrow supply chains. The group’s efforts are now increasingly directed at creating innovative supply chain solutions through technological advancement.
Ride on the Belt and Road Initiatives
Another significant development for Hutchison Ports is the China Belt and Road Initiative (BRI). BRI is a development strategy proposed by the Chinese Government, which focuses on connectivity and cooperation between different Eurasian countries. Given that 43 out of the 52 ports operated by Hutchison are situated along the Belt and Road, representing 96% of its total throughput, the company is well placed to benefit from the Belt and Road opportunities.
Although a lot of work still needs to be done to develop reefer trades between Europe and Asia, the BRI is expected to have far reaching consequences, especially as the attraction of the Chinese market is set to continue. This is, of course, driven by the rise of the Chinese middle class and powered by the gradual shift of purchasing power towards China.
Robust Reefer Market Outlook
“Whilst reefers only represent a fraction of world container trade, the value of perishables transported by sea is in fact much higher and growing,” von Stempel who will be chairing the Cool Logistics Asia event added.
According to the latest forecasts by Drewry, growth of reefer traffic is outpacing that of the overall container trade, due to growing worldwide demand for perishables and diminishing market share controlled by specialised reefer vessels. Drewry expects reefers to have grown at 8% in 2017, i.e. significantly more than its own (earlier) 10-year annual growth forecasts of 3.6%.
About the Organisers
*ASIA FRUIT LOGISTICA is organised by Global Produce Events GmbH (GPE). GPE is a joint venture company owned by Messe Berlin GmbH, organiser of FRUIT LOGISTICA, and Fruitnet Media International GmbH.
NB. Cool Logistics Resources Ltd. provides top-quality business intelligence and networking for supply chain, logistics and transport professionals in the international perishables markets. Cool Logistics Resources also organises the annual Cool LogisticsTM Global Conference in Europe connects perishable cargo owners with cold chain logistics and transport professionals from around the world to assess key market trends and operational best practice for the international movement of chilled and frozen cargoes by air, land and sea.
Follow us on Twitter @coollogistics | Join the Cool Logistics Group on LinkedIn