Reefer Operator News

For the first time in Europe, Public Prosecutors are bringing criminal charges against a ship owner – Seatrade – for having sold vessels to scrap yards in countries “where current ship dismantling methods endanger the lives and health of workers and pollute the environment”. The case is being heard in a Rotterdam Court this week, and the Dutch Public Prosecutor calls for a hefty fine (2.35 mill EUR) and confiscation of the profits Seatrade made on the illegal sale of four ships, as well as a six month prison sentence for three of Seatrade’s top executives. Seatrade is based in Groningen, the Netherlands, and is the largest reefer operator in the world.

Container shipping lines are increasing their share of the seaborne reefer market and are forecast to accelerate their assault over the coming years, according to the latest edition of the Reefer Shipping Market Review and Forecast 2017/18 published by global shipping consultancy Drewry. In 2016, the estimated perishable reefer cargo split was 79% in reefer containerships and 21% in specialised reefers. By 2021 this modal split is forecast to have changed to nearer 85% and 15% in reefer containerships and specialised reefers respectively. One interesting development in 2017 saw specialised reefer operator Seatrade team-up with CMA CGM to provide a 13-vessel reefer container service offering a weekly sailing between Europe and Australasia.

Oslo-listed Siem Shipping reported a net profit of USD2.5 million (Q3 2014: net loss USD-0.2 million). The container lines are continuing to use very aggressive pricing strategies to win market share in the reefer segment. The specialist reefer operators continue to fight back by highlighting the superior quality of the service they provide but the margins are being squeezed. The forecasted El Niño climatic event is expected to change the banana supply mix in the coming months from Ecuador/Central America. Siem Shipping is well positioned to adapt to the change in demand whilst continuing to provide a first-class service. The Company’s…

Though specialized reefer fleet is shrinking and shows no signs of reversing in the future, the reefer containership fleet has increased by 15 percent year-on-year and is set to grow 20 percent by 2018, according to maritime research and consulting services provider Drewry’s latest Reefer Shipping Market Annual Review & Forecast. Consequently, with a capacity restricted specialized fleet, there is no alternative but for cargo to be shipped by reefer containership, a trend Drewry says is accelerating with continued cargo growth.

Despite growing competition from container lines, specialised reefer operators can still thrive, according to Drewry’s latest Reefer Shipping Market Annual Review & Forecast, referred to here in an extract from DMR's latest 'Container Insight Weekly'. Specialised reefer operators peaked some years ago in terms of cargo volumes and are now having to contend with falling volumes and market shares as container lines move further into their territory. However, this does not necessarily mean they cannot survive and looking at the limited number of public companies reporting financial returns, profitability is indeed achievable. To protect their future viability, specialised reefer companies must now reinvent themselves to protect their undoubted expertise in this field.

Drewry’s latest Reefer Shipping Market Annual Review and Forecast reports that worldwide perishable reefer trade increased by 52.1 million metric tons between 2002 and 2012, which represents by a combined annual growth rate (CAGR) of 3.6%. Seaborne perishable reefer cargo has increased by a CAGR of 3.3% (25.6 million metric tons) from 66.8 million metric tons in 2002 to 92.4 million metric tons in 2012. The highest percentage growth continues to be seen in the exotic fruit category (pineapples, kiwifruit and avocadoes). Despite its relatively small volume of 4.5 million metric tons in 2012, this sector has grown by a CAGR of 9.1% since 2002. In terms of tonnage, the highest growth has been in the meat category (comprising poultry, pork, beef/veal, offal and sheep meat).

The Global Container Service Group (GCS) has added new feeder and short-sea links to the list of services calling at the NUTEP terminal in Novorossiysk. Both GCS and NUTEP are members of the Delo Group. X-Press Feeders has launched the BSX service to Novorossiysk, Odessa and other Black Sea ports by adding a vessel to Evergreen’s Black Sea feeder (BSF). Piraeus – Odessa – Constantza – Varna – Piraeus. Piraeus – Novorossiysk - Odessa – Constantza – Varna – Istanbul - Piraeus. Novorossisyk – Odessa – Evyap – Istanbul – Gemlik – Izmir – Alexandria – Ashdod - Haifa – Izmir – Istanbul – Gemlik – Evyap –Novorossisyk – Odessa. Now, Admiral is starting a second service, an Istanbul (Marport)/Novorossiysk shuttle, using the 508TEU Corsa. The first sailing is due to take place in late October.

Leif Hoegh & Co. ASA announced plans to buy the remaining 50 percent of reefer operator Unicool, in which it already holds a 49.8 percent stake. Final negotiations for the deal re expected to take place next week. The price of the deal is to remain confidential, officials said. Unicool is the world's biggest operator of refrigerated ships and has 68 vessels.