• Home
  • News
  • Reefer container freight rates stabilise but to outpace dry box pricing - Drewry
  • 2022 August 16 15:14

    Reefer container freight rates stabilise but to outpace dry box pricing - Drewry

    Reefer container freight rates across global trades rose over 50% in the year to 2Q22, matching gains made in dry cargo pricing, and are estimated to increase further in 3Q22, outpacing dry box rates, according to Drewry's release. But some stabilisation is already underway on some reefer trades and this is expected to be followed by modest declines through 2023, as cargo owners push back on unsustainable freight rate increases, according to Drewry’s recently published Reefer Shipping Annual Review and Forecast 2022/23 Report.

    Drewry’s Global Reefer Container Freight Rate Index, a weighted average of rates across the top 15 reefer intensive trade routes, rose 50.4% YoY in 2Q22 and the 3Q22 reading is expected to climb further, though the pace of growth will slow. East-West routes have seen only modest freight rate increases over the last four quarters, as capacity pressure has eased thanks to the softening pork trade from both Europe and North America to Asia. The exception has been the westbound Transatlantic which saw volume jump as much as 9% in the year to 2Q21, while average freight rates doubled over the same period, as early opening of the North American economy boosted consumption in the hotel, catering and entertainment sectors.
     
    Looking ahead, 2023 reefer container freight rates are expected to soften, but to a much lesser extent than dry box pricing, as reefer rates continue to lag that of the wider trade.

    Drewry Global Reefer Container Freight Rate Index

    Source: Drewry’s Reefer Shipping Annual Review and Forecast 2022/23

    Global seaborne reefer traffic recovered by 2% in 2021 from a pandemic ravaged 2020, reaching 137.4 million tonnes, but slowed to 1.1% YoY in 1H22. Drewry forecasts that the trade will end the year with an annual gain of just 1%.
     
    “The reefer supply chain is at a precarious moment with extremely high input costs for materials such as fertilizer, packaging and energy, to name just a few. Freight rates remain unsustainably high and many BCO’s, particularly those moving low value products, are shipping less as they are priced out of the market”, said Drewry’s head of reefer shipping research Philip Gray. “The next round of freight rate negotiations between carriers and cargo owners are expected to take heed of this reality, leading to a modest decline in reefer freight rate levels through 2023.”
     
    Despite the present uncertainty, Drewry expects seaborne reefer trade growth to accelerate over the coming years, to expand at an average annual rate of 3% over the years to 2026. Modal shift will continue to be a key feature with the containerised portion forecast to grow at the faster pace of 3.7% CAGR, as the specialised reefer ship fleet continues to age inexorably with very few units on the orderbook.
     
    “Despite fears of a global slowdown in trade, supply chain disruption is expected to remain a feature well into 2023,” added Gray. “As BCOs have learnt to their cost, the reefer trade is secondary to the much larger and dominant dry freight trade which drives carrier network priorities. This reaffirms the need for cargo owners to take more control of their logistics to ensure timely delivery and optimal product integrity.”




2022 October 6

19:30 Loading of General Chernyakhovsky ferry begins following flag-hoising ceremony
18:07 MSC updates Noumea Express service
17:29 Russian Maritime Register of Shipping issues statement on the EU Council press release of October 6, 2022
17:27 100-pct stock of Murmansk Sea Fish Port collected in favor of the state under action filed by FAS
17:12 EU adopts its latest package of sanctions against Russia
17:05 Three partners to join the North Field South development project
16:58 Nexans signs Empire Wind contract to bring renewable energy to New York
16:39 RF Government counts on having about 1,100 various ships built at domestic shipyards by 2030
16:38 JCB appoints Maersk as its new global Lead Logistics Provider
16:13 Port Houston orders 26 eco-efficient hybrid Konecranes RTGs
15:35 EST-Floattech signs contract for refit to hydrogen-electrical propulsion of 'FPS Maas' inland shipping barge
15:20 Cargo traffic on North-South ITC can double by 2030 – Mikhail Mishustin
14:58 KSOE wins orders for 7 vessels worth over KRW2tn - BusinessKorea
14:37 EU agrees on eighth package of sanctions against Russia
13:41 MABUX: Bunker Weekly Outlook, Week 40, 2022
13:19 Port of Gdansk handled over 7.6 million tonnes of coal year-to-date
12:55 Allseas to fit vessels with hybrid power solutions from Kongsberg Maritime
12:15 Russian ships can carry about 90 million tonnes of cargo per year
11:36 LR signs contract with Birdon for new Royal Australian Navy Sail Training Ship
11:08 First batch of coal shipped from Syradasayskoye field on Taimyr peninsula
10:34 AB Klaipėdos Nafta declares purchase option to acquire Independence
10:30 Oil production in Russia to decrease by 6-7% in 2023 - Alexander Novak
10:09 NYK and Group Company to introduce integrated shipping system as a DX Foundation
09:47 Wartsila and Capital Gas to partner in greenhouse gas reduction with Fleet Decarbonisation Programme
09:26 OPEC+ approved oil production cut by 2 million barrels a day
09:01 MABUX: In Global bunker market upward trend to continue on Oct 06
07:50 Crowley completes the purchase of 42 acres in Salem, Massachusetts, for the development of the state’s second major offshore wind port terminal

2022 October 5

18:37 Austal Australia to undertake patrol boat autonomy trial for Royal Australian Navy
18:06 Associated British Ports signs new agreement with the UK’s largest privately owned fertiliser importer
17:55 Initiation ceremony for cadets of Admiral Makarov State University of Maritime and Inland Shipping held in Kronstadt
17:36 Kongsberg Digital signs new partnership agreement with Alpha Ori Technologies
17:25 Unmanned electric passenger ships can appear in Saint-Petersburg
17:06 MSPs back Forth Green Freeport bid to deliver green growth plan for Scotland
16:52 DSME lands LNG carrier orders worth KRW1.85tn - BusinessKorea
16:08 GTT receives an order from Hyundai Heavy Industries for the tank design of seven LNG carriers
15:50 Container traffic on Russian Railways’ internal network in 9M’2022 rose by 3.6% YoY
15:36 WSC, ICS and ASA submit their input to the European Commission on the renewal of the CBER
15:27 Bunker sales at Vladivostok port in 9M’2022 fell by 28% YoY
15:04 Alfa Laval to be a technology partner for the project to investigate the on-board capture, storage and off-loading of carbon dioxide
14:41 IMO's GreenVoyage2050 celebrates five years of its Global Industry Alliance to Support Low Carbon Shipping
14:18 Marine passenger infrastructure of Saint-Petersburg should be converted to cater for inland water transport ‒ expert
14:12 ABS approves pioneering autonomous technology for HHI Group
13:54 NOREBO commences preparation works on construction of reefer terminal “Udarnik” in Murmansk Region
13:32 Pavilion Energy and MOL name newbuild LNG bunker vessel
13:02 General cargo ship bound for Russia disabled in Bosphorus - FleetMon
12:42 USC commences serial production of propulsion/steering units ДРК1200М
12:20 UK Government funds consortium led by Unitrove to deliver world’s first zero-emission multi-fuel station for hydrogen and electric ships
12:01 Finnlines to launch two new ro-pax vessels in autumn 2023
11:36 MOL signs LNG carrier charter contract for Sakhalin II project
11:29 Throughput of Azov port in 9M’2022 fell by 13% YoY to 6.8 million tonnes
11:21 Port of Rotterdam Authority presents future scenarios for 2050
11:01 Singapore sets out to drive transformation in bunkering on the world's largest forum for the marine fuel industry
10:39 A.P. Moller - Maersk orders six large ocean-going vessels that can sail on green methanol
10:20 Anemoi and COSCO Shipping Heavy Industry to offer full wind propulsion technology installation services
10:05 Shearwater GeoServices to introduce the geophysical company’s first dual ROV seismic vessel
09:39 MOL joins Blue Visby Consortium
09:28 Traffic volumes on Ust-Luga – Baltiysk ferry line are stable
08:52 MABUX: Upward changes to continue in Global bunker market on Oct 05

2022 October 4

18:43 Samskip adds Value Maritime CO2 capture to decarbonisation strategy
18:32 DEME upgrades DP fallpipe vessel fleet