Dive Brief:
- Maersk Line is gearing up for a predicted surge in orders of perishable goods, reported the Financial Times last week.
- China in particular is expected to be increasing orders for Brazilian beef, as its growing middle class expands its collective appetite beyond poultry and pork. The surge in demand for beef comes after the lifting of a ban on South American meat imports due to mad cow disease.
- Maersk also is increasing exports of Brazilian fruit to Europe thanks to the new refrigerated containers which feature wireless sensors, allowing for more accurate gaging of temperature and humidity.
Dive Insight:
Current growth within Latin American markets is rising, making the need for an expanding cold chain ever more critical for the global economy.
Maersk's determination to expand its cold chain has resulted in a total of 270,000 units within its reefer capacity. In 2016 alone, the line added more than 14,000 new units, revealing its concentration on the expanding pharmaceutical and perishable food market within Latin America. Further, Maersk has interest in acquiring the Hamburg Sud line and the company's well equipped reefers, featuring state of the art cold chain equipment.
An investment in a previously successful line, however costly, could well suit Maersk's obvious intent to dominate the cold chain. Regardless of whether Hamburg Sud's alleged $5 billion asking price is a bargain for Maersk, planning ahead to become the foremost carrier within Latin America could bring considerable returns on investment.
