Business Bayani PH

The reefer shipping industry, which transports temperature-controlled cargo like fruits and meat, is showing signs of recovery in 2024 after two years of decline, fueled by strong harvests in the Southern Hemisphere.

Drewry’s latest Reefer Shipping Forecaster predicts a return to growth for the sector this year, with overall worldwide seaborne reefer volumes expected to rise by more than 1% year-on-year.

“Good growing seasons have supported improved deciduous exports so far this year,” said Drewry, a maritime research consultancy, in a statement. “South Africa’s citrus season is likely to deliver further growth with new orchards coming into production, and good growing conditions expected to benefit orange, lemon and grapefruit exports.”

Positive momentum is also being seen in key reefer commodities like meat and bananas, with year-on-year growth in the first few months of 2024. This is further bolstered by falling reefer freight rates, as shipping lines adjust prices downward after pandemic-related disruptions.

While the risk of conflict in the Middle East caused reefer rates to rise slightly in the first quarter, Drewry expects them to continue declining due to excess capacity in the container shipping segment. This excess capacity can compensate for any rerouting needed around the Red Sea.

The outlook for container shipping, which also plays a role in reefer transport, remains somewhat resilient despite ongoing challenges at the Panama Canal. Long-term deals secured by container lines have ensured priority for many shipments, particularly for larger operators who can maintain schedules.

Improved rainfall in Central America has also provided a temporary boost, but water levels at the Panama Canal are still well below average. This suggests potential schedule disruptions for some time to come.

The Southern Hemisphere refers to the southern half of the Earth, encompassing continents like South America, Africa (south of the equator), Australia, Antarctica, and southern parts of South America. These regions experience summer during the Northern Hemisphere’s winter, and vice versa.

Overall, the positive momentum in the first half of 2024, along with improving export volumes and falling reefer freight rates, paints a brighter picture for the reefer shipping industry this year.Ⓒ