Reefer Analysis 2024 – Conventional, Containers, Markets, Fleets

The reefer shipping industry continues to be shaped by the global geopolitical landscape, affecting trade routes, service patterns and demand for (container)ship capacity. As the driving force behind perishable goods transport, reefer shipping must navigate both adaptations in the relevant trade corridors and the overall fleet developments.

Developments in reefer shipping

The year 2023 was relatively calm for the reefer shipping industry following a turbulent 2020-2022. However, this all changed on 7 October 2023 when the Israel-Hamas war started. In the weeks that followed, the conflict effectively closed the Red Sea/Suez route for most ships transiting between the Indian Ocean and Europe. As a result, many carriers were forced to reroute around the Cape of Good Hope.

For the reefer trade sector, the direct impact of the consequent revision of liner networks was relatively modest. This is because the majority of reefer services operate along North-South corridors and so are not dependent upon a clear Red Sea passage.

However, the indirect effects were felt, for example, through the resultant higher charter rates filtered through to the reefer sector. This was exacerbated by carriers not managing to offset these increased costs with higher rates.

Containers versus conventional reefers

The rerouting of liner services led to a huge surge in demand for containership capacity, which fortunately coincided with a boom in newbuilding deliveries. However, this could not prevent the capacity situation from becoming tight. Freight rates on specific routes soured as shippers of all types scrambled to secure space as soon as possible.

The wave of newbuildings has continued and many more are in the pipeline with orders still being placed. Although these ships are not necessarily destined for reefer trades, it is expected these will alleviate pressure on containership charter services and freight rates. This would be the case especially if the Suez Canal route reopens, which would then put pressure on the conventional reefer sector.

The outlook for the conventional reefer fleet is more challenging because it continues to shrink. With rates substantially below the peak of 2020-2022, operators are already sending their oldest ships to the breakers. Although there is a modest spike in conventional reefer newbuildings that will reach the market in 2025, this is insufficient to counterbalance the fleet’s overall decline. This is likely to be the case until the early 2030s, when the conventional reefer fleet is expected to have dropped so that it barely exceeds the symbolic threshold of 100 million cubic feet.

Content

For the latest in-depth analysis on the conventional and container reefer sectors, Dynamar’s 2024 edition of ‘Reefer Analysis’ is a must-read for any industry professional in the reefer sector. This comprehensive report provides essential insights into the world of perishable cargo shipping:

 

• Market Overview: Detailed analysis of the world’s perishable trades, transport modes, and main import/export regions.
• Conventional Reefer Shipping: Up-to-date statistics on fleet composition, major operators, and recent sector developments.
• Container Reefer Shipping: Insights into key containerised reefer routes, fleet developments, and carrier profiles.
• Future Projections: Forecasts for perishable trade and fleet growth.
• Competitive Landscape: Analysis of conventional and container shipping, including port handling facilities and trading patterns.

Download our comprehensive Reefer Shipping 2024 report today!

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