China's rising fruit imports push up demand for refrigerated shipping

Growth in China's imports of fruit and vegetables is spurring demand for seaborne transport in refrigerated containers, a business benefiting from the rise of an affluent middle class, open trade policies and the advancement of cold treatment technology.

Traditionally a net exporter of fruit and vegetables, mainland fruit imports are up 26 per cent over the past five years to US$4 billion last year, with exotic fruit such as longan and durian, as well as grapes, showing the biggest increases, according to the International Trade Centre. The sources of the imports are becoming more diverse, extending from its Southeast Asian neighbours to countries in the southern hemisphere. For example, 82 per cent of China's imports of cherries - popular around Lunar New Year due to its festive ruby colour - are from Chile, with which China signed a free trade agreement in 2005.

"The same factors that have benefited China's exports over the last 20 years, such as an open trade policy and investment in infrastructure, are now also starting to bear fruit for imports," said Michael Britton, Asia-Pacific region general manager at Hamburg Süd, the world's fourth-largest refrigerated, or reefer, container carrier by fleet size.

Cold chain logistics, historically a weak point for domestic distribution of perishable goods, has attracted significant investment over the past five years.

"Cold storage capacity has greatly improved in China. Before it was pretty basic - brick warehouse, chain link fence and a padlock. But now investments are coming, which enables China to handle more perishable imports," said Britton.

While the mainland's economic slowdown affects the commodities trade, "soft commodities", or perishable goods, are growing at a faster rate, although from a smaller base, according to Britton.

Besides fruit and vegetables, meat and seafood are projected to see a similar trend on the mainland of more imports and fewer exports.