Ghent distribution centre for Brazilian fruit juice

Ghent distribution centre for Brazilian fruit juice - Port...

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Port Economics. Chapter 3. Case study Ghent Distribution Terminal for Frozen Fruit Juice 1. New scheme The activities of the Brazilian company “Citrus Coolstore”, importing deepfrozen Brazilian fruit juice concentrates in the Port of Ghent [] clearly illustrate a new transport, commercialisation and distribution scheme. Whereas traditionally, fruit juice concentrates were shipped in drums from overseas, on order, the establishment of a specialised storage and distribution centre has thoroughly changed the whole commercialisation of the product. The buyer can now order his goods from the terminal in the port of Ghent. Upon reception of the order, it is not necessary anymore to plan the sea transport of the goods, because they are immediately delivered from the warehouse in Ghent; while the former, traditional kind of organisation resulted in the goods being delivered in a European port only about a month after they had been ordered. Because of the concentration of imports in a single port, the imported volume is large enough to allow the introduction of a whole range of services concerning the concentrates, the most important being laboratory research, the filling of the drums and the blending of the goods. The centralisation of all imports through one port has also made it possible to develop a revolutionary transport method. 2. Revolutionary transport method Formerly, the concentrates were shipped from Santos to various ports: Le Havre, Sheerness, Rotterdam and Hamburg. The concentrates, packed in drums of 250kg, were transported aboard traditional reefers. This kind of transport required chartering ships according to the law of demand and supply: when the volume to be loaded was not large enough, the goods had to be shipped by liners having a refrigerated hold. Of course, transport costs were higher because four different European ports had to be called at. Moreover, the owner of the concentrates had to invest in the production of drums and the weight of the metal drums prevented the vessel’s carrying capacity from being fully utilised. By the same token, the loading space available in the holds was under-utilised since the space between the drums themselves and between the ship’s sides and the decks could not be filled with concentrates (“broken stowage”). 3. Disadvantages of shipping in drums
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This note was uploaded on 03/04/2011 for the course ECON 178 taught by Professor Yangliu during the Fall '08 term at Tsinghua University.

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Ghent distribution centre for Brazilian fruit juice - Port...

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