Session Details

Cool Cargoes I: Is Relief in Sight for the Reefer Market?

Monday, 28 February

3:50 pm - 4:35 pm (PST) / 28/feb/2022 11:50 pm - 01/mar/2022 12:35 am

The port congestion and supply chain challenges confronting refrigerated shippers is a microcosm of the industry as a whole: strong volumes to and from Asia, labor shortages at the busiest terminals on the US West and East coasts, tight trucking and storage capacity, chassis shortages, and problems repositioning containers. Global reefer demand in 2021 is up 4 percent year over year, on track for a compound annual growth rate of 4.3 percent from 2020 to 2025, according to an analysis from Seabury and Eskesen Advisory. But for many reefer shippers, the challenge to keep their goods moving is even tougher than for dry goods shippers. That’s because temperature-controlled goods are less profitable to ocean carriers than dry goods and thus do not receive priority status. The issues are wreaking havoc on the global movement of perishables products — and the situation isn’t expected to ease until next spring, at least. In some cases, delays are causing fresh produce to rot on ships because those ships are unable to discharge containers at congested ports. Meanwhile, refrigerated shipping rates have risen sharply, and shippers face multiple other costs, including detention and demurrage and/or terminal-handling charges if they seek to reposition their containers. This session will kick off the TPM22 Cool Cargoes track by analyzing the state of the global cold chain, with a focus on one primary question: When will the pressure ease on refrigerated shippers?

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