US reefer volumes fell 21.8 per cent through May, with soaring rates and container shortages putting reefer trade on hold, reports IHS Media.
Shippers don't expect any significant relief from these pressures until next year at the earliest.
Through May, US reefer volumes fell 21.8 per cent year over year to 1.15 million TEU.
It comes after volumes rose 3.3 per cent for the entire year in 2021 and 8.1 per cent in 2020.
Exports dropped 48.2 per cent during the first five months of the year, while imports fell 2.6 per cent compared to the same period in 2021.
'If a grower can't pass on these increases, sometimes they leave product in the ground and don't ship,' said Eskesen Advisory cold chain adviser William Duggan.
'The other option is just to break even to stay with a customer. Depending on the commodity and the cost to get it to market, all these factors come into play.'
Reefer container supply remains tight, adding to cost pressures.
'Containers are sitting on trains and warehouses, or otherwise not in position for shippers, so it's taking those containers out of the market,' said Mr Duggan.
'It's still a very tight supply of refrigerated containers.'
Global Cold Chain Alliance senior vice president Lowell Randel declared shortages of other assets and a lack of cold storage capacity near ports has further limited the overseas reach of US exporters of perishables and other temperature-sensitive products.
'All of those factors are challenges for cold chain industry,' said Mr Randel.
'There's been some improvement here and there, but for most of our members, those are issues that are still persisting.'
With higher rates, reefer shippers have faced service and capacity changes that have slowed activity.
Port congestion and vessel backlogs have also played a role in reefer volume declines.
Said Mr Duggan: 'We had massive problems on the export of fresh cargo,'
'They just couldn't take the long delays of waiting to go out, so you lose the sale of the export. For the cargo to sit at the port for a week, you are basically done on shelf life.'
SeaNews Turkey
Shippers don't expect any significant relief from these pressures until next year at the earliest.
Through May, US reefer volumes fell 21.8 per cent year over year to 1.15 million TEU.
It comes after volumes rose 3.3 per cent for the entire year in 2021 and 8.1 per cent in 2020.
Exports dropped 48.2 per cent during the first five months of the year, while imports fell 2.6 per cent compared to the same period in 2021.
'If a grower can't pass on these increases, sometimes they leave product in the ground and don't ship,' said Eskesen Advisory cold chain adviser William Duggan.
'The other option is just to break even to stay with a customer. Depending on the commodity and the cost to get it to market, all these factors come into play.'
Reefer container supply remains tight, adding to cost pressures.
'Containers are sitting on trains and warehouses, or otherwise not in position for shippers, so it's taking those containers out of the market,' said Mr Duggan.
'It's still a very tight supply of refrigerated containers.'
Global Cold Chain Alliance senior vice president Lowell Randel declared shortages of other assets and a lack of cold storage capacity near ports has further limited the overseas reach of US exporters of perishables and other temperature-sensitive products.
'All of those factors are challenges for cold chain industry,' said Mr Randel.
'There's been some improvement here and there, but for most of our members, those are issues that are still persisting.'
With higher rates, reefer shippers have faced service and capacity changes that have slowed activity.
Port congestion and vessel backlogs have also played a role in reefer volume declines.
Said Mr Duggan: 'We had massive problems on the export of fresh cargo,'
'They just couldn't take the long delays of waiting to go out, so you lose the sale of the export. For the cargo to sit at the port for a week, you are basically done on shelf life.'
SeaNews Turkey
