The global reefer container sector is currently experiencing a tight squeeze as we move towards the end of 2024, with seasonal demand peaks and a notable increase in exports from Latin America contributing to a crunch in equipment availability. This uptick in activity, particularly evident during the high season for perishables from nations such as Argentina and Chile, is causing a notable imbalance in reefer container distribution. The challenge is compounded by extended transit times due to vessels opting for longer routes, like navigating around the Cape of Good Hope.
Specific regions are feeling the pinch more acutely, with South America reporting a 73% shortfall in reefer availability and Europe experiencing a 19% deficit. The pressure on the global reefer market is further intensified by robust export growth from Southern Hemisphere territories, including South Africa, with citrus exports playing a significant role. As demand for refrigerated goods escalates in major markets such as the US and China, competition for reefer containers is expected to intensify.
Operational disruptions in key ports like Singapore and Dubai, where congestion has hit unprecedented levels, are also influencing the reefer market landscape. These challenges are prompting shippers to consider alternative strategies, such as utilizing different ports or adjusting shipment schedules, to circumvent delays and equipment shortages projected to extend into early 2025.
In essence, the global reefer market is under considerable stress due to a confluence of factors including heightened demand for Latin American exports, seasonal demand surges, and logistical hurdles. Shippers are advised to proactively manage their logistics plans to navigate through these reefer container availability constraints, which are anticipated to persist into the coming year.
Source: Metro