SEABORNE reefer trade has weakened again in the fourth quarter with cargo demand expected to post a second year of decline, says Drewry's Reefer Shipping Forecaster, reported Hellenic Shipping News Worldwide.
Moreover, low water transit restrictions on Panama Canal are starting to impact vessel capacity serving exports of perishables out of the west coast of South America, said the report.
A convergence of factors, ranging from climate impacts on key fruit crops, to weak Chinese demand and geopolitical tensions, have dampened the short-term outlook.
Thus, total seaborne reefer cargoes for 2023 are forecast to decline 0.5 per cent year on year, according to Drewry analysts. This will follow last year's contraction of 0.8 per cent and will represent two consecutive years of declining trade.
Meat remained the largest commodity by volume in 3Q23. Despite strong pork exports from the US and Brazil so far this year, this segment has been slowed by declines in beef exports and continued weak demand from China.
In the fish and seafood sector, demand has also waned, as marine heat waves in the Atlantic have added risks for piscine ecosystems and catches have been consistently low in the year to date.
Across the fruit sector, there has been a noticeable trend of reduced exports from almost all major producing regions, as El Nino effects have amplified weather events. Scarcity of quality produce has driven declines in deciduous, exotics, and melons and berry exports.
The banana trade has also faced difficult operating conditions, with increasing cost pressures and weak demand resulting in flat lining seaborne exports this year.
But perhaps the biggest wild card now is the situation with the Panama Canal, with transits and drafts heavily reducing due to the lack of rain which was the lowest in October since 1950. Transit slots now stand at 24 per day and will go down gradually to 18 by February.
SeaNews Turkey
Moreover, low water transit restrictions on Panama Canal are starting to impact vessel capacity serving exports of perishables out of the west coast of South America, said the report.
A convergence of factors, ranging from climate impacts on key fruit crops, to weak Chinese demand and geopolitical tensions, have dampened the short-term outlook.
Thus, total seaborne reefer cargoes for 2023 are forecast to decline 0.5 per cent year on year, according to Drewry analysts. This will follow last year's contraction of 0.8 per cent and will represent two consecutive years of declining trade.
Meat remained the largest commodity by volume in 3Q23. Despite strong pork exports from the US and Brazil so far this year, this segment has been slowed by declines in beef exports and continued weak demand from China.
In the fish and seafood sector, demand has also waned, as marine heat waves in the Atlantic have added risks for piscine ecosystems and catches have been consistently low in the year to date.
Across the fruit sector, there has been a noticeable trend of reduced exports from almost all major producing regions, as El Nino effects have amplified weather events. Scarcity of quality produce has driven declines in deciduous, exotics, and melons and berry exports.
The banana trade has also faced difficult operating conditions, with increasing cost pressures and weak demand resulting in flat lining seaborne exports this year.
But perhaps the biggest wild card now is the situation with the Panama Canal, with transits and drafts heavily reducing due to the lack of rain which was the lowest in October since 1950. Transit slots now stand at 24 per day and will go down gradually to 18 by February.
SeaNews Turkey
