The global reefer market is bracing for significant strain in the fourth quarter of 2024, primarily due to seasonal demand and increased export pressures from Latin America, with Brazil set to experience a 13% surge in beef exports.
These figures are driving heightened demand for refrigerated containers, or reefers, which are already under pressure from the longer transit times brought about by carriers diverting vessels around the Cape of Good Hope.
The anticipated spike in Brazilian beef exports coincides with the typical peak season for perishables, with other Latin American countries, including Argentina and Chile, also likely to face equipment shortages, as carriers struggle with imbalances in the availability of refrigerated containers.
The situation is worsened by global market dynamics, with Southern Hemisphere regions like South Africa are experiencing strong export growth for products like citrus. In contrast, Europe, Southern Africa, and South America are all suffering from equipment shortages, with South America’s reefer imbalance at -73%.
As US beef production declines and Australia faces challenges due to drought, both markets are increasingly turning to Brazilian meat, driven in part by the strength of the US dollar. This further elevates the competition for reefer equipment. Shippers will likely face challenges as perishable cargo from other countries such as Peru and Chile, which often command higher rates, competes with Brazilian beef for reefer space.
With the growing strain on equipment availability, shippers may need to explore alternative ports or reschedule shipments to avoid delays. As the reefer market continues to expand, the imbalance of equipment availability across regions will likely persist, adding further pressure on supply chains.
In summary, the reefer market in the final quarter of 2024 is expected to face significant strain, driven by increased demand for Brazilian exports, seasonal factors, and global logistical challenges. With equipment shortages forecasted to continue into 2025, shippers must plan carefully to mitigate potential delays and disruptions in their supply chains.
Global Forwarding are experts in refrigerated cargo shipping, cold-chain management and specialised packaging, to make sure your fresh and frozen products always arrive in pristine condition.
Our dedicated foodstuffs team can help you with all your export and import requirements providing full support with Customs regulations, and compliance with health authorities at origin and destination.
EMAIL William Bashford, Managing Director, Global Forwarding Ireland
