Dynamar is pleased to announce the release of the latest edition of its Reefer Analysis. The study builds upon the analysis of the previous years and represents one of the most comprehensive analyses of the seaborne perishables market available globally. The study comprises three parts: two separate sections on the different and container reefer trades, based on an extensive write up and one section analysing the structure of the market conventional.
After struggling for many years and after a relatively prosperous 2021, in 2022, container carriers and conventional reefer operators hit the jackpot. With the container shipping sector in full swing and much capacity absorbed by congestion, box vessels could not provide enough space to carry all the cargoes they were offered. Containers were regularly rolled over onto the next sailing, got stuck in terminals or spent lots of precious time floating in front of their destination port where all the quays were occupied and waiting until they could finally be unloaded.
From a cargo perspective overall perishables trade volumes across the major commodity groups, namely Dairy, Fishery Products, Fruit, Meat and Vegetables, rose to a new high of 173.9 million tons in 2021, showing a strong growth of 3.6% year-on-year from 167.9 million tons in 2020. Volumes grew across all the commodity groups, with meat and vegetables both performing well, rising from 32.2 million tons and 39.3 million tons to 34.2 million tons and 42.18 million tons respectively. In regional terms, there was significant variety with perishables exports falling in the Far East and Central America, while growing strongly in Europe and Africa.
Despite the strong performance of the perishables market in 2021, challenges remain aplenty. Supply chain disruption, while easing, is still causing problems worldwide and the role played by record inflation figures is beginning to manifest itself in day-to-day life and international trade. As a result, in the first three quarters of 2022, container trade reduced by almost 2.5%, with recent months showing higher declines than those at the start of the year. On the supply side, it is the end of congestion, in combination with lower demand, that causes the shortage of ships to dwindle. Where at the peak some 12% of vessel capacity was caught in congestion, in November 2022, the laid-up fleet was approaching 500,000 TEU, which is four times as high as in the first two months of that year.
Looking forward, the seaborne trade of perishable products will face challenges. But the longer-term trend is expected to remain in place. Dynamar forecasts that perishable export volumes will fall slightly in 2022 before rebounding again in 2023. On the shipping side, while for 2023, shipyards are expected to deliver 330 ships with a massive 2.3 million TEU capacity and for 2024, 390 ships with space for 3.0 million TEU are in the pipeline. Slippage or cancellation of orders is likely to reduce the actual deliveries, but still at 20% of the current fleet, the influx of new tonnage is set to severely disrupt the container shipping market.
Up to some extent, the saviour may come from an unexpected side, the Carbon Intensity Indicator (CII) regulation, imposed by the International Maritime Organization, which enters into force in January 2023. Conventional reefer ships will be even more affected by the new CII regulation. Generally, they are old and fuel hungry and many of them will be forced to sail at lower speeds than the market requires. Their competitive advantage of being able to provide faster transit times with their direct sailings than containership operators with their liner services and hub and spoke format will be lost. Already, demolition is at a relatively high level, and it is likely to rise even further.
For more information, please contact the authors Frans Waals and Jonathan Mummery at
Product Information:
REEFER Analysis 2022 - Market Structure, Conventional, Containers
This publication builds upon the analysis of the previous years. The study comprises three parts: two separate sections on the different and container reefer trades, based on an extensive write up and one section analysing the structure of the market conventional.
Part I - Reefer market structure(s)
After a historical overview on the background and development of reefer shipping, this chapter provides extensive summaries, statistics and concise descriptions of:
- The world perishable trades: volumes by main produce and export regions;
- Transport modes and characteristics: transport conditions - modern techniques;
- The world’s main import regions: United States, European Union, Russia, China and Japan;
- Trading patterns: conventional ships versus container vessels - main export areas - exports by product and individual country;
- Major reefer ports: perishable exports by country - description of relevant reefer handling facilities by mode of transportation - port throughput statistics.
Part 2 - Conventional reefer shipping
This section opens with a review of recent developments in the conventional reefer sector (including those affecting reefer container transports), covering three years (2019-2021), including statistics and graphs of relevant time charter equivalents, as well as:
- Extensive conventional reefer ship overviews and statistics (existing IMO-registered fleet, orderbook, age profile, demolition, future development);
- Structured profiles of the world’s 15 largest conventional reefer ship operators, including markets/trade lanes served and their operated fleet (whether owned or chartered).
Part 3 - Container reefer shipping
This section provides insight into the main containerised reefer routes and services, invariably part of the South-North trade structure. Compared to previous versions of this publication, coverage has been expanded by even more trading areas. Furthermore, this section comprises:
- Extensive overviews and statistics on the composition and development of the container vessel fleet and orderbook, reefer TEU capacity, plugs/capacity ratios by size category;
- Refrigerated container box fleet, size categories, production data, capacity by carrier;
- Structured profiles of the world’s 10 largest reefer container carriers.
This publication uses the most recent trade statistics (up to 2021) on reefer commodities by country and area, supplemented with up-to-date port, vessel, box and carrier fleet statistics and gives a profound insight into the background, characteristics, developments and present status of the worldwide shipping market of perishables and the relevant players.
All information for the report has been collected, researched and processed in the third and fourth quarters of 2022. As sources often differ on the same topics, we have endeavoured to provide the reader with the most accurate estimates. Analyses are based on the best available professional databases and media, complete with data originating from carriers, operators, port authorities and a great many other industry players.
