The availability of reefer, or refrigerated container, equipment in the local market remains constrained, although the situation has not reached crisis levels. This is what local experts told FTW following a recent report by maritime research consultancy Drewry on the availability of reefer equipment around the world. Drewry found that equipment availability would remain tight over the next few years – and that this would, in turn, affect shipping capacity supply and freight rates at seasonal peaks. According to the report, the dramatic halt in reefer equipment expenditure by cash-strapped shipping lines in 2016 led to acute shortages in several regions. While the production of new refrigerated container equipment recovered during 2017 and continued to gather pace in 2018, the market is still feeling the pinch. Drewry expects the reefer equipment fleet to maintain a compound annual growth rate of 4.5% over the next five years. While this is slightly ahead of anticipated growth in containerised cargo traffic, it is not expected to be sufficient to bring supply back into equilibrium. Mike Walwyn, of supply chain solutions company Nexlog, said the availability of reefer equipment in the local market had been constrained and would remain so until the manufacturers caught up. Another industry stakeholder said the shortage was particularly noticeable during peak times and that reefer availability was quickly compromised by bad planning or any delays. “Any planning issues or delays result in empty reefers not being offloaded at our ports, which immediately puts us under pressure and we have equipment problems.” In this market environment, he added, rates remained high. According to Drewry, the volume of seaborne reefer cargo grew by 3% in 2018 to 129 million tonnes, which was weaker than the 4.4% gain achieved in 2017 and the 3.5% average annual rate recorded over the prior 10-year period. The weaker trade development was driven by a slowdown in shipments of meat and poultry, fish and seafood, banana shipments, and a contraction in deciduous trade. The future outlook is more positive, though, with forecast growth expected to match that of the wider container shipping market with its annual growth of about 4%.
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Any planning issues or delays result in empty reefers not being offloaded at our ports. – Mike Walwyn