Despite a contraction in 2022, demand for reefer freight has recovered

Freight rates for reefer containers continue to outpace those for dry cargo, and this divergence is set to continue over the next few years, according to Drewry's recently published Reefer Shipping Annual Review and Forecast.

 

Drewry, a UK-based shipping consultancy, estimates that total world reefer cargo has fallen to 137.5 million tonnes by 2022, the first decline in over 20 years of around 1% compared to the dry cargo trade.

 

The report also shows that reefer freight rates have been falling since their peak in Q3 2022, but at a slower rate than for dry freight. Average prices, charged by the top 15 reefer ocean carriers, fell by 22% in the year to Q2 2023. However, reefer freight rates remain around 60% above pre-pandemic levels, while dry cargo prices are similar.

 

Looking ahead, the report predicts that reefer shipping will outperform the dry goods trade, with containerised reefer trade forecast to grow at an average annual rate of 3.6% over the years to 2027.

 

Looking ahead, the report predicts that reefer shipping will outperform the dry cargo trade, with containerised reefer trade forecast to grow at an average annual rate of 3.6% over the years to 2027.

 

For 2024, rates are still expected to be above pre-pandemic levels, with the projected decline in freight rates being more measured for reefer containers than for dry cargo.