- Reefer cargo is the new battleground with rates rising and equipment scarce
- reefer freight rates are forecast to continue rising as price inflation feeds into north-south routes
Container shipping bottlenecks are creating winners and losers in reefer cargo, with consumers footing the bill for the increased logistics costs says an article on The Loadstar.
Freight rates increase
According to Drewry, average reefer freight rates jumped 32% in Q2, and are on track for a 50% increase by the end of Q3. Increases on the major east-west trade lanes were particularly strong, where available capacity has seen record demand in recent months, and reefer shippers have to compete with dry freight BCOs for slots.
Price rises in dry cargo
However, while the uptick of reefer rates has been dwarfed by astronomical price rises in the dry cargo, the analyst expects the situation to reverse next year when the bull market is likely to cool.
Freight rates to rise
Philip Gray, head of reefer shipping research, said: “In contrast to dry container freight rates, which are expected to decline in 2022 as trade conditions normalize, reefer freight rates are forecast to continue rising as price inflation feeds into north-south routes when long-term contract rates are renewed.”
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Source: The Loadstar
