Global average reefer freight rates have recorded four quarters of uninterrupted increases despite reefer trades having a reputation for volatility according to Drewry’s Global Reefer Freight Rate Index.
Stijn Rubens, Drewry Supply Chain Advisors senior consultant, said that the wave of carrier consolidation last year had had a direct impact on the global market structure, and as this would continue well into 2018, further rate increases could be expected.
“As shipping lines gradually regain control of prevailing freight rates, the markets are becoming increasingly tight with behaviours one would more commonly associate with oligopoly conditions,” he said. “The recent drop in investment in reefer containers only lends further weight to our expectations of further rate increases during 2018.”
