After a difficult 2023 The reefer shipping industry began 2024 in better conditions, thanks to the abundant harvests throughout the Southern Hemisphere. Drewry’s Reefer Shipping Forecaster indicates a positive trend for the industry by 2024, indicating possible end of two previous years of declining. Increased exports of deciduous trees have been noticed, with South African’s citrus production anticipated increase significantly because of the advent of orchards that are new and the favorable agricultural climate. The kiwifruit industry in New Zealand, even though it has had a slow beginning, is expected to rebound strongly throughout the entire year.

This sector also has seen positive growth for the bananas and meat trade, which has seen growth of only a few digits per year. The increase in the key commodities exports comes with the reduction in reefer costs, as shipping lines respond to the post-pandemic environment and deal with excess capacity issues. Although rates initially increased in the initial quarter of 2024 due the geopolitical environment and geopolitical tensions, the rate is expected to fall even more.

The resilience of container shipping, in spite of delays and a backlog, specifically in the Panama Canal, has been remarkable. The long-term contracts have guaranteed the priority of shipping, which has helped the maintenance of schedules. In addition, increased rainfall throughout Central America is expected to ease the canal’s transit issues however, water levels are under the average of historical data.

Drewry believes that the favorable growth in exports, as well as the continuing decrease in freight costs are likely to result in a rise in seaborne reefer production worldwide that exceed 1percent year-on-year by 2024.

Source: hellenicshippingnews.com