In the wake of the mad cow disease reports in North America, demand has shot up for Australian beef, putting considerable pressure on carriers and causing a shortage of reefers, according to Meat and Livestock Australia. Figures released by this organization show that Australia exported 23,701 tons to Japan in January by diverting the beef from other markets.
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Analysts said reefer shortages in Australia were caused by the high repositioning costs and depressed northbound rates. The low rates have caused carriers to turn away low-rated cargo in favor of returning empties to Asia for use in profitable trades, a trend that is expected to continue over the next few months until Japan lifts its ban on U.S. imports. WJS