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 November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Euroseas Sells C/V Marinos

Euroseas Ltd.  an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes,

Bill on Danish Maritime Planning Submitted

The bill is to form the basis of a maritime planning act intended to promote economic growth and development of sea areas. The Danish Maritime Authority is to head the work.

Plans to Create Rio Doce Fund

Vale and BHP Billiton announced today plans to work together, with Samarco, to establish a voluntary, non-profit fund to support the rescue and recuperation of the Rio Doce river system,


BIMCO Signs New LNG And Shipbuilding Supervision Contracts

The twice yearly meeting of BIMCO’s Documentary Committee took place in Hamburg on 19 November. In his first meeting as Chairperson of the Committee, Belgium’s

Damen Marine Components Opens Jiangyin Plant

Damen Marine Components (DMC) is proud to announce the opening of its brand new facility in Jiangyin, China.Those present at the opening ceremony included CEO

Henriksen Unveils Strongest SOLAS Boat Lifting Hook

H Henriksen of Norway has received SOLAS certification for a new off-load single-point boat lifting hook capable of holding up to 22.5-tonnes. The quick release

Container Ships

Euroseas Sells C/V Marinos

Euroseas Ltd.  an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes,

Groundbreaking Ceremony for Seaspan's Vancouver Office

Seaspan hosted a groundbreaking ceremony today to announce it has officially started construction on a new head office in North Vancouver. The 7,800 square metre (84,

SSA Welcomes Decision To Extend BEO

The Singapore Shipping Association (SSA) has welcomed the decision by Singapore’s Minister for Trade and Industry to extend the Competition (Block Exemption


DP World, SCA Pact for Ain Sokhna Port Development

Suez Canal Authority (SCA) and the Red Sea Ports Authority signed an agreement with Dubai Ports World (DP World) and Sonker Bunkering Company for the development of Egypt’s Ain Sokhna seaport,

SCCT Prepares to Boost Vessel Traffic with 24-hour Access

A formal signing ceremony will now enable vessels to transit to Port Said East through a new side channel to be constructed bypassing the Suez Canal’s main entrance.

Evergreen Line Orders Ten 2,800 teu Ships

Taiwanese shipping company Evergreen is ordering ten 2,800 TEU container ships from Japanese shipbuilder Imabari Shipbuilding Co.,Ltd and compatriot CSBC Corporation.

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Sonar
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: 0.1116 sec (9 req/sec)