Rethinking the shipping return trip

Published: FY2025

Using NOR containers to turn empty shipping into strategic value

Thousands of containers packed with fresh fruit leave South Africa’s ports every year for global markets. According to industry estimates, over 200 000 refrigerated containers (reefers) are used annually to support the country’s thriving fruit export economy. This trade flow showcases South Africa’s agricultural strength, but it also creates a quiet inefficiency in the global logistics chain.

Strong demand means many reefers leave the country full of perishables, but far fewer are needed on the return leg. These containers often return empty, generating excess cost, unused capacity and avoidable emissions.

That’s where Pepkor saw an opportunity.

As part of its broader supply chain strategy, Pepkor began leveraging Non-Operating Reefer (NOR) containers, a logistics solution that turns global inefficiencies into commercial advantage. NORs are refrigerated containers with their cooling systems switched off, enabling them to function as regular dry containers on the return leg of a shipping journey. For shipping companies, it’s a way to reposition reefers cost-effectively. For Pepkor, it’s a more cost-effective and sustainable way to ship merchandise.

Between October 2024 and March 2025, PepClo shipped an estimated 2 000 twenty-foot equivalent units (TEUs) using NOR containers. Since the cooling unit is not required on the inbound leg, Pepkor benefits from preferential pricing per cubic unit, which is offered by shipping lines who are keen to return their reefers to circulation.

Through tapping into the NOR ecosystem, Pepkor has unlocked a logistics model that delivers threefold value:

1. Commercial value
Pepkor has achieved meaningful cost savings on inbound shipments through NOR containers, sidestepping the premium rates associated with standard container bookings. This cost-conscious approach focuses on scalable and efficient operations, made possible through close collaboration with shipping partners and a willingness to explore smarter logistics strategies.

2. Sustainability by design
Using NOR containers reduces the number of empty returns, lowering emissions and fuel consumption per TEU from Asia to South Africa. It’s a clear win for sustainability goals, minimising waste within the global logistics system and delivering carbon savings without significant investment or disruption. Greener trade is built into the model.

3. Supply chain agility
This decision also underscores the company’s responsiveness to global shipping dynamics. In a volatile logistics environment where costs, delays and port pressures are increasingly common, the ability to explore flexible, low-cost solutions, such as NORs, gives Pepkor an operational edge.

Living the framework: Building Better Business in action
Pepkor’s use of NOR containers reflects a practical application of Pepkor’s Building Better Business framework, which guides the integration of sustainability across its decentralised businesses and operations. This initiative supports the framework’s focus on improving resource efficiency, reducing carbon emissions and adapting to climate change through smart, low-cost operational choices. This is a clear example of sustainable thinking embedded in everyday operations.

The approach also reinforces the group’s commitment to responsible sourcing and ethical partnerships. Through close collaboration with shipping providers, Pepkor has introduced a solution that delivers measurable cost savings while contributing to a more sustainable logistics chain.