Drewry Maritime Research: Reefer Charter Rates Thaw

press release
Tuesday, September 13, 2011

Reefer market dynamics continue to change.
 
Drewry Maritime Research have just published their latest Reefer Shipping Market Annual Review and Forecast 2011/12, analysing the industries make-up including; leading operators’ profiles and fleets, perishable commodities, specialised reefer and freezer fleet capacity, containerised reefer vessels, ship economics and forecasts for the future. As the burgeoning containerised reefer market continues unabated, the specialist reefer fleet is feeling the strain. With twelve-month charter rates forecasted to continue sliding, scrapping levels gaining pace and for the first time an empty newbuild orderbook , the industry is changing quickly.

 

Twelve-month period charter rates continued to fall in 2011, having already lost 10% in 2010, with some positives being drawn from the spot market were overall year-end forecast rates are still on course to be higher than those in 2010. But with strong competition from containership operators, the financial outlook is a cautious one. Worldwide trade in perishable products continued to increase in 2010, with seaborne trade following suit, so demand for reefer capacity is still inherently strong. The mode of transport is the factor that continues to change the industry, with forecasts indicating that by 2014 some 74% of perishable reefer cargo will be carried by containerships – that will provide up to 95% of overall reefer capacity.

 

The continuing trend towards container usage leads Drewry onto important analyses of the current reefer fleet. For the first time the newbuild orderbook stands at zero, coupled with scrapping programmes that have seen, on average, 36 vessels a year scrapped between 2008-2010 and a further 19 added to the list as of June 2011, the fleet now stands at 691 vessels. If scrapping continues along recent trends it is feasible that the fleet could dwindle to 476 vessels by 2015. With all of these factors having significant effects on the specialised reefer industry it is foreseen that it will continue on its path as a niche carrier. Many trades are ideally suited to specialised reefer services and it is these that will ensure its continuing – and profitable- future, albeit on a smaller scale than in previous years.

 

Susan Oatway of Drewry Maritime Research stated, ‘Yes the specialised reefer fleet is contracting, but the containerised sector is by no means gifted an untroubled future. Containership operators have a dilemma on reefer pricing. On the one hand they will be keen to see constant – or increasing – utilisation levels of reefer slots. Given the high number of newbuildings scheduled to deliver, this suggests downward rate pressure. On the other hand, they will be keen to maintain pricing structures given both the impact this inevitably has on other cargoes, as well as their current financial concerns.’ as Reefer market dynamics continue to change

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

Shell Presents Crewmember Safety Awards

Shell Shipping and Maritime, Americas recently held its third annual Goal Zero Hero Awards dinner in Houston, recognizing the crewmembers of 21 contracted/chartered vessels,

Bollinger Wins Contract for Phase II FRC Builds

Louisiana shipbuilder Bollinger Shipyards announced it has secured a contract to build Phase II of the Sentinel Class Fast Response Cutters (FRC) for the United States Coast Guard (USCG).

Shipbuilding

Bollinger Wins Contract for Phase II FRC Builds

Louisiana shipbuilder Bollinger Shipyards announced it has secured a contract to build Phase II of the Sentinel Class Fast Response Cutters (FRC) for the United States Coast Guard (USCG).

Massive Layoff Ahead for Hyundai Heavy

Another massive reduction in the Korean shipbuilding workforce may come as most shipyards are still struggling with falling orders and mounting losses, reports Yonhap quoting industry sources.

Daewoo Shipyard Posts Q1 Operating Loss

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. posted a first-quarter loss after incurring more costs to finish some offshore projects.   First-quarter

Container Ships

GPA Will Continue Weighing Containers at No Cost to Shippers

The U.S. Coast Guard announced last week that state-calibrated scales already in use at the Port of Savannah meet a new requirement of the international Safety of Life at Sea (SOLAS) Convention.

ITIC Reports on Ship Agents' Costly Transhipment Errors

International Transport Intermediaries Club (ITIC) says it continues to deal on a regular basis with claims resulting from errors by agents involving transhipment cargoes.

Maersk Returns to Liverpool

Maersk has been welcomed to the Port of Liverpool with a formal reception for its feeder vessel Antwerp. The event on April 27 was attended by Seago and Maersk representatives along with customers,

Logistics

GPA Will Continue Weighing Containers at No Cost to Shippers

The U.S. Coast Guard announced last week that state-calibrated scales already in use at the Port of Savannah meet a new requirement of the international Safety of Life at Sea (SOLAS) Convention.

Slower Demand for Larger Vessels Drags Baltic Index Lower

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday due to diminishing demand for larger vessels.

Maersk Returns to Liverpool

Maersk has been welcomed to the Port of Liverpool with a formal reception for its feeder vessel Antwerp. The event on April 27 was attended by Seago and Maersk representatives along with customers,

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1654 sec (6 req/sec)