The reefer trade has grown despite a decline in the specialised reefer fleet, according to a report. Drewry Shipping Consultants’ annual report says the world reefer trade grew from 84.6 million tonnes in 1995 to 132.7 million tonnes in 2005, a compound annual growth (CAGR) of 4.6 per cent.

The specialised reefer fleet above 100,000 cu ft has declined in number from 878 vessels in 1999 to just 786 vessels in 2007. Conversely, the container fleet has increased significantly to a total of over 4,000 vessels as at quarter 1, 2007, with a further 1,265 on order at that time. Container capacity is consequently predicted to increase by almost 50 per cent between 2007 and 2010. While the existing container fleet provides 1.25 million teu of reefer capacity, offering approximately 1,250 million cu ft of reefer capacity, the specialised reefer fleet above 100,000 cu ft provides 321 million cu ft of capacity – little more than 20 per cent of overall reefer capacity.
Drewry reports that this dramatic change is driven partially by the demand from receivers of cargo, but also questions the extent to which this is being forced by the lack of availability – ie investment - in specialised reefer tonnage.
Cargo volumes are forecast to continue to increase and while individual trades may be lost from specialised reefer tonnage to reefer container tonnage, the global volume of reefer cargo carried by the specialised reefer vessels may be far less affected. The overall message is that the specialised reefer industry is likely to continue to lose market share but, for those who remain, a healthy future – at least for now – is likely.
Based on current economic forecasts reefer trade should show strong growth with world trade in perishables set to increase to 199.5 million tonnes in 2015. Seaborne reefer trade is also forecast to grow significantly – from 73 million tonnes in 2006 to 104.6 million tonnes in 2015 – a CAGR of 4.1 per cent.
Nigel Gardiner, Drewry’s managing director, indicated: “Profits in the reefer sector are on the up reflecting a trend in overall seaborne trade. The specialised reefer fleet continues to decline in numbers since its peak in 1999. Yet owners and operators still enjoy healthy profits as time charter rates reach record levels.” At the centre of reefer sector dynamics lies the growth of containerisation. The report provides a critical analysis of past performance with a commentary on what lies ahead for reefer businesses.
Drewry Shipping Consultants provides commercial, economic and technical consulting services to the international shipping industry. The company is headquartered in London, with a support organisation in India and a number of overseas representatives. Established in 1970, its activities are grouped around the following business practices: bulk shipping; containers, ports and logistics, specialist shipping and technical services.