Boxes may languish, but seaborne perishable reefer trade is booming
THE seaborne perishable reefer trade increased in 2015 and is expected to grow again this year, rising 2.5 per cent a year until it hits 120 million tonnes in 2020, according to Drewry's Reefer Shipping Market Review and Forecast.
While future seaborne cargo growth levels are 3.1 per cent lower than those of the last decade, such increases will have a direct effect on both container lines with reefer capacity and specialised reefer operators, say Drewry analysts.
With over 400 containerships with reefer capacity yet to be delivered, and possibly more still to be confirmed, Drewry looked at the effect this will have on capacity utilisation.
Based on the confirmed orderbook, reefer utilisation will actually improve as a result of the increased seaborne cargo volumes and rising market share for the reefer containership mode, they said.
The older specialised bulk reefer fleet's market share is falling, but it still provides five per cent of overall reefer capacity and carries 23 per cent of total seaborne perishable trade.
Last year, Drewry expanded its cargo analysis to include the pharmaceuticals and cut flowers - trades it has continued to review in this year's report.
Although seaborne pharmaceutical trade levels decreased year-on-year, it is clearly an exciting market with the potential of various commodities switching from air freight to sea freight - if existing insurance problems can be resolved.
This year, Drewry has added confectionery to its diverse product review. The combined exports of sugar and chocolate confectioneries reported a strong growth in 2015.
For the first time, Drewry analyses the total global TEU of perishable reefer cargoes - by commodity.
In addition, the report looks at over 30 key trade lanes and compares reefer TEU volumes for 2015 with those for 2014 - as well as calculating the reefer percentage of the overall (reefer and dry) trade.
"Drewry estimates that the container sector as a whole made US$4 billion in profits over 2015, but as the year progressed momentum slowed as demand weakened," said the report's editor, Kevin Harding.
"This in turn impacted freight rates in the specialised reefer sector as container lines chased every available dollar. As a result, reefer shipping has become increasingly unprofitable in 2016, along with dry cargo trades," he said.
THE seaborne perishable reefer trade increased in 2015 and is expected to grow again this year, rising 2.5 per cent a year until it hits 120 million tonnes in 2020, according to Drewry's Reefer Shipping Market Review and Forecast.
While future seaborne cargo growth levels are 3.1 per cent lower than those of the last decade, such increases will have a direct effect on both container lines with reefer capacity and specialised reefer operators, say Drewry analysts.
With over 400 containerships with reefer capacity yet to be delivered, and possibly more still to be confirmed, Drewry looked at the effect this will have on capacity utilisation.
Based on the confirmed orderbook, reefer utilisation will actually improve as a result of the increased seaborne cargo volumes and rising market share for the reefer containership mode, they said.
The older specialised bulk reefer fleet's market share is falling, but it still provides five per cent of overall reefer capacity and carries 23 per cent of total seaborne perishable trade.
Last year, Drewry expanded its cargo analysis to include the pharmaceuticals and cut flowers - trades it has continued to review in this year's report.
Although seaborne pharmaceutical trade levels decreased year-on-year, it is clearly an exciting market with the potential of various commodities switching from air freight to sea freight - if existing insurance problems can be resolved.
This year, Drewry has added confectionery to its diverse product review. The combined exports of sugar and chocolate confectioneries reported a strong growth in 2015.
For the first time, Drewry analyses the total global TEU of perishable reefer cargoes - by commodity.
In addition, the report looks at over 30 key trade lanes and compares reefer TEU volumes for 2015 with those for 2014 - as well as calculating the reefer percentage of the overall (reefer and dry) trade.
"Drewry estimates that the container sector as a whole made US$4 billion in profits over 2015, but as the year progressed momentum slowed as demand weakened," said the report's editor, Kevin Harding.
"This in turn impacted freight rates in the specialised reefer sector as container lines chased every available dollar. As a result, reefer shipping has become increasingly unprofitable in 2016, along with dry cargo trades," he said.