DHL – Ocean Reefer Market Update, 3Q 2024

The ocean reefer market in the third quarter of 2024 has seen new container capacity offsetting disruptions caused by conflicts in the Middle East, though geopolitical tensions continue to impact oil and fuel costs. CMA-CGM is utilizing the Suez Canal on a Mediterranean service to reduce transit times and address vessel capacity issues. However, issues with the Panama Canal have disrupted schedules for services to the US East Coast and Europe. The reefer sector remains strong, driven by increasing demand for meat, bananas, and vegetables. The reefer container market is expected to grow significantly due to global food trade, e-commerce, and pharmaceutical expansions. Banana volumes have grown despite challenges, while citrus exports from the Southern Hemisphere are projected to increase. Meat exports are slowly recovering, with pork volumes remaining stable. Fish and seafood volumes have decreased due to lower shipments to key markets. Demand for reefers has unexpectedly surged, causing a shortage of containers and capacity. The market's growth momentum could be at risk from geopolitical risks, such as conflicts in the Middle East. Capacity shortages are expected to persist until October, with longer transit times causing space and equipment shortages.