The reefer container market is currently experiencing a serious squeeze, as we approach the year 2024’s close and peak demand during the summer months as well as a significant rise in exports coming from Latin America contributing to a shortage of equipment. This increase in activity is evident particularly during peak seasons for perishable products from nations like Argentina and Chile and is creating an imbalance in distribution of reefer containers. This issue is further exacerbated because of the extended time to transit because vessels are choosing more extensive routes such as those that go through to the Cape of Good Hope.

Certain regions feel the strain more severely and are particularly affected, in particular, South America reporting a 73 percentage shortfall in availability of reefers as well as Europe suffering an 18% gap. The stress on the global reefer market is only heightened through the robust growth of exports coming in Southern Hemisphere territories, including South Africa, with citrus exports playing an important role. When the demand for refrigerated products increases in key markets like China and the US as well as China the demand for reefer containers are anticipated to grow.

Operations disruptions at key ports such as Singapore and Dubai in which congestion has been at an all-time high and are affecting the market for reefers. This is prompting shippers to think about alternative options including using different ports, or altering their schedules for shipping to prevent delays, and shortages of equipment that are expected to last until the beginning of 2025.

The global market for reefers is in severe pressure because of an array of issues, including an increased the demand of Latin American exports, seasonal demands that are exploding, as well as logistical obstacles. Shippers are advised to actively plan their logistics strategies to deal with this shortage of reefer containers and are likely to last into the next year.

Source: Metro