Conflicts in Ukraine could reduce scarcity in reefer market

Ukraine and Russia account for around 4.5% of global refrigerated shipping demand. The stoppage of traffic from and to these 2 countries will change the situation on the reefer market.

 

According to Philip Gray, refrigerated transport analyst at Drewry, Ukraine and Russia account for around 4.5% of global reefer demand. This volume will impact the reefer market which is dependent on the slightest disturbance.

 

The reduction in demand from and to these 2 countries should reduce the shortage on the reefer market and succeed in lowering freight prices. The Drewry analyst said that Russia imported nearly 4 million tonnes of fresh produce by sea in 2021. Of this volume, around 40% were bananas from Ecuador and Central America.

 

With the slowdown in trade to the Black Sea and to Russian ports, there will be a surplus of equipment elsewhere and therefore less of a shortage in the reefer market. This could lead to lower freight rates.

 

source : lloydslist.maritimeintelligence.informa.com