DCN September Edition 2019

Global trade uncertainties
and environmental
regulations have hardly
dented a relatively
strong market for reefer
containers, writes
Paula Wallace
Stronger
for
longer
Seaco
Compared to other areas of the shipping sector, the market for
reefer containers is strong and has good long-term prospects.
In 2020 and beyond, seaborne reefer trade is expected to grow
at a higher rate than the previous few years due primarily to
the decline in specialist refrigerated shipping services, which
many think will be hit hard by the IMO 2020 sulphur emissions
rules coming in next year.
“At the beginning of this year everyone was getting excited about
6% growth but I think what’s happened is, even though people
need to eat and there is a growing need for perishable product… the
trade wars and uncertainty with various economies has slowed that
down a bit,” John Bannister, VP refrigerated and tank containers at
Seaco, tells Daily Cargo News.
“Everyone was forecasting that this year would be a bumper
year,” he says. “I see signs this is slowing. But once the uncertainty
starts to disappear I can see that growth coming back again.”
Mr Bannister says growth estimates for this year are now sitting
at around 4-4.5%.
The container leasing company has been investing in its fleet,
adding 12,000 new reefer containers in 2019.
“The total fleet for reefers is close to 180,000 units that’s
a sizeable fleet and we’re continuing to add to that,” Mr
Bannister says.
Other drivers of growth include the rise of developing markets
and increasing spending power in those markets, which creates
demand for more product and better quality food on a yearround
basis.
“That drives the market for better transportation and logistics to
bring that food in and drives markets for reefers and reefer slots to
carry that product,” Mr Bannister says.
thedcn.com.au September 2019 47