REEFER Analysis 2021 - Market Structure, Conventional, Containers
This publication builds upon the analysis of the previous years. The study comprises three parts: two separate sections on the different conventional and container reefer trades, based on an extensive write up and one section analysing the structure of the market.
Part I - Reefer market structure(s)
After a historical overview on the background and development of reefer shipping, this chapter provides extensive summaries, statistics and concise descriptions of:
- The world perishable trades: volumes by main produce and export regions;
- Transport modes and characteristics: transport conditions - modern techniques;
- The world’s main import regions: United States, European Union, Russia, China and Japan;
- Trading patterns: conventional ships versus container vessels - main export areas - exports by product and individual country;
- Major reefer ports: perishable exports by country - description of
Part 2 - Conventional reefer shipping
This section opens with a review of recent developments in the conventional reefer sector (including those affecting reefer container transports), covering three years (2019-2021), including statistics and graphs of relevant time charter equivalents, as well as:
- Extensive conventional reefer ship overviews and statistics (existing IMO-registered fleet, orderbook, age profile, demolition, future development);
- Structured profiles of the world’s 15 largest conventional reefer ship operators, including markets/trade lanes served and their operated fleet (whether owned or chartered).
Part 3 - Container reefer shipping
This section provides insight into the main containerised reefer routes and services, invariably part of the South-North trade structure. Compared to previous versions of this publication, coverage has been expanded by even more trading areas. Furthermore, this section comprises:
- Extensive overviews and statistics on the composition and development of the container vessel fleet and orderbook, reefer TEU capacity, plugs/capacity ratios by size category;
- Refrigerated container box fleet, size categories, production data, capacity by carrier;
- Structured profiles of the world’s 10 largest reefer container carriers.
Across the various segments of maritime trade, 2021 has proved to be a volatile yet profitable year for most. After a number of years in which patterns largely remained the same, namely cargoes switching from conventional reefer ships to containers, the conventional fleet growing older and older and worldwide volumes of perishables trade increasing, 2021 turned this picture on its head.
The well-publicised instances of port congestion, low tonnage availability, sky high charter rates, freight rates and second-hand prices as well as a considerable puck up in the newbuild orderbook have culminated in one of the best years ever for the container shipping market. top-12 carriers managed to bring in a net profit of more than USD 75 billion during the first nine months of 2021 alone, an absolute record. For the entire year, this sum is likely to surpass USD 100 billion. Much of this money has been allocated to newbuildings. For the conventional reefer operators, for which little financial data are available, profits are likely to be less exorbitant, but they probably have a good year as well.
Also the conventional reefer operators benefited. Whilst time charter equivalents reached extreme lows in 2020 and one operator even cast doubt on its continued existence, in 2021, their fortunes were reversed. Cargoes that would otherwise have gone into containers now ended up in their ships. Consequently, only few ships were scrapped during the first half of 2021, some of which because they were approaching their five-year survey and it would have been too costly to keep them in operation.
For conventional reefer operators, the joy is temporary, however. Their ships continue to grow older, while orderbooks are razor thin. Therefore, in the second half of 2021, demolition started picking up again, with twelve units scrapped in a period of just four months. Moreover, with new environmental regulations coming into force in 2023 requiring operators to reduce their fuel consumption, quite a number of ships will become uneconomical to operate. With regulations becoming even stricter in 2026 and the costs of upgrading too high, many ships are likely to be sold off for scrap by that time.
What 2022 will bring and how long the boom will last is anybody’s guess. As long as a big part of the fleet is absorbed by congestion, the current situation will continue. A positive for the container operators is that they are likely to renew contracts at higher rates than before, so that income is guaranteed even when the spot prices eventually go down. A major ordering boom in 2021, during which the containership operators spent much of their income on new tonnage, is not likely to bring any relief until at least 2023, or even before 2024. These are interesting times…
Key highlights:
- Worldwide perishables exports reach 168.76 million tons in 2019, with provisional figures indicating a small decrease to 166.87 million tons in 2020. Provisional figures are subject to much revision based on reporting delays.
- The Far East remains the top exporting region with 34.78 million tons in 2019 (2020 – 32.07 million tons) but together, Central and South America are way above the other regions with exports of 39.98 million tons in 2019 and 41.84 million tons in 2020.
- Fruit remains the main exported commodity with 71.63 million tons in 2019 and 69.78 million tons in 2020 ahead of vegetables with 39.79 million tons in 2019 and 39.34 million tons in 2020.
- The United States remains the top individual exporter with 15.56 million tons in 2019 and the same amount in 2020, ahead of China with 13.96 million tons in 2019 and 14.05 million tons in 2020 (excluding intra-European transport flows)
- The conventional reefer vessels fleet amounted to 548 vessels of 177.53 million cubic feet and 50,450 TEU in mid-2021, while the containerised fleet amounted to 24.46 million TEU, with a total reefer plug number of 2.58 million.
- Reefer heavy container liner services now number 146 over eighteen individual trade lanes, with a total capacity of 5.55 million TEU and 859,500 reefer plugs.
For further data insights from Dynamar or if you have questions regarding the publication, please do not hesitate to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or directly at This email address is being protected from spambots. You need JavaScript enabled to view it..
This publication uses the most recent trade statistics (up to 2020) on reefer commodities by country and area, supplemented with up-to-date port, vessel, box and carrier fleet statistics and gives a profound insight into the background, characteristics, developments and present status of the worldwide shipping market of perishables and the relevant players.
All information for the report has been collected, researched and processed in the third and fourth quarters of 2021. As sources often differ on the same topics, we have endeavoured to provide the reader with the most accurate estimates. Analyses are based on the best available professional databases and media, complete with data originating from carriers, operators, port authorities and a great many other industry players.
Alkmaar/the Netherlands
Source Jonathan Mummery