Dynamar is proud to present its eleventh consecutive, annual specialist report:
The Dynamar (2020) Reefer Analysis
We can surely describe 2020 as a year like no other. At the end of 2019, the market expected that the introduction of the IMO2020 low-sulphur regulation would set the tone for the year, with lots of fuel-hungry old conventional reefer ships heading to the breakers , while container operators would lose even more money than they usually do, but a simple virus changed all of this.
Compared to 2019, the reefer market saw a considerable amount of upheaval through 2020, especially in the early months, as a result of the corona virus pandemic. Difficulties began in April with suppliers facing disruption in getting fresh produce to the relevant ports. Lower warehouse productivity on the back of working, social distancing and travel restrictions caused longer lead times and a reorientation of ordering and inventory processes.
As a result, reefer containers began to stack up in Chinese ports. Consequently, carriers announced the introduction of congestion surcharges for reefers and containers were diverted to other ports or delayed by the ever increasing amount of blanked sailings. Yet, the disruption to the containerised segment generated some positivity for the conventional segment with reports that, due to a corona-related shortage of box capacity, enquiry and later activity for conventional reefers saw an uptick.
Looking into the crystal ball, this peak will not continue forever. With vaccines becoming available, the world will pick up its normal pace, albeit with a little less wealth. What we learned from this crisis is that people will continue to eat whatever happens, that box carriers can actually control themselves when the crisis is big enough and that life goes on. Most likely, they will also fall back into old habits, ordering too many ships and continue to compete on prices. Also for the conventional reefer operators life will go back to normal. The ships remain old and continue to use a lot of fuel. And when oil prices go up again, their competitiveness goes down. Regardless, time will tell what happens and 2021 is likely to be a bit more normal than 2020.
Dynamar’s Reefer Analysis applies the most recent trade statistics on reefer commodities, supplemented with up-to-date port, vessel, box and carrier fleet statistics. It delivers a profound insight into the background, characteristics, goings and present status of the worldwide perishables shipping market and its most relevant players. It is a must read for anyone involved in cold logistics.
‘Dynamar (2020) REEFER Analysis – Market Structure, Conventional, Containers‘ reports, in-depth, on anything reefer relevant, including:
– Historical and technological developments in reefer shipping
– Worldwide perishables trades by year, area and by country
– Seaborne trade flows, conventional, containers, and related port infrastructure
– Conventional reefer and container ship fleet development and forecasts up to 2030
– Top 15 conventional reefer ship operator profiles
– North/South Reefer heavy container trades, per carrier and overall
– Top 10 reefer container operators
All this and more can be found in Dynamar’s recently released eleventh edition of its always well-received annual reefer trade study.
PDF (download link), Printed/bound (Postal), PDF and Printed/bound