Reefer container shortage looms as demand surges

The global market for refrigerated containers, or reefers, is facing significant pressure as we approach the end of 2024. Seasonal demand, combined with increased export activity from regions like Latin America, is straining equipment availability.

This surge coincides with the peak season for perishables, especially from countries like Argentina and Chile. Carriers are grappling with imbalances in reefer availability, worsened by longer transit times caused by vessels rerouting around the Cape of Good Hope. Imbalances are also evident in other regions, with South America showing a 73% reefer shortage and Europe facing a deficit of 19%.

Meanwhile, strong export growth in Southern Hemisphere regions like South Africa which are driven by products such as citrus, are further exacerbating the strain on reefer availability. As global demand for refrigerated goods continues to rise, particularly in key markets like the US and China, shippers are expected to face growing competition for reefer containers.

Challenges in securing enough equipment have also been affected by disruptions in ports such as Singapore and Dubai, where congestion reached record levels. The result is that shippers may need to explore alternative ports or reschedule shipments to avoid delays, as equipment shortages persist into early 2025.

In summary, the global reefer market is under significant pressure due to rising demand, particularly for Latin American exports, seasonal factors, and logistical disruptions. Shippers must carefully plan and adjust their supply chains to mitigate delays and shortages as reefer container availability remains strained well into 2025.

Metro specialises in refrigerated cargo shipping, cold-chain logistics, and insulated packaging to ensure your perishable goods arrive in optimal condition. Our expert foodstuffs team offers comprehensive support for all import and export needs, including guidance on Customs regulations and health authority compliance at both the origin and destination.

If you’d like to explore how Metro can optimise your temperature-sensitive supply chain, please contact Andrew Smith, Chief Commercial Officer, via EMAIL to discuss your specific requirements.