Annual Review & Outlook 2025 Maritime
US reefer imports from South America grew 11.8 % through September . Shutterstock . com
Cold spring
Reefer market growth expected to continue in 2025
By Laura Robb
The big picture : Amid increased demand for equipment and projected market growth , the refrigerated ( reefer ) container market is positioned to see increased competitiveness in 2025 . With the looming threat of operational interruptions from ongoing port labor negotiations , time-sensitive reefers could bear the brunt of work stoppage impacts . Meanwhile , extended transit times around Africa are putting further pressure on equipment availability .
A look back : The reefer market experienced some upward support in 2024 as global trends put pressure on the cold chain . Analysts noted an increase in demand for reefer cargo during the year , particularly for agriculture exports from South America . US reefer imports from South America grew 11.8 % year over year in the first nine months of 2024 , including a 17.6 % jump in August , according to PIERS , a sister product of the Journal of Commerce within S & P Global . In addition to increases in demand for fresh cargo , the cold chain market has been supported by the growing pharmaceutical and chemicals sectors . Meanwhile , the diversion of vessels away from the Red Sea and resulting longer transits have tied up sought-after reefer equipment . The threat of labor stoppages at US East and Gulf coast ports also led some to shifts in shipping patterns , as concerns about time-sensitive cargo being abandoned at ports during a strike prompted shippers to consider alternative solutions before the initial Oct . 1 negotiation deadline . The brief strike by the International Longshoremen ’ s Association ( ILA ) had marginal ripple effects on equipment availability as cargo was delayed during the interruption . Other port stoppages were brought on by severe weather in Asia , including several typhoons that have impacted vessel flows .
A look ahead : Reefer shippers using US East and Gulf coast ports will keep a close eye on the next ILA strike deadline on Jan . 15 , as perishable cargoes are particularly vulnerable to spoilage during delays of any kind . Also of concern will be the impacts of sweeping tariffs threatened by US President-elect Donald Trump . Those tariffs , if enacted , could result in shifting sourcing patterns for dry goods , but this may not be an option for certain reefer shippers , who would be forced to either eat the additional costs or raise prices to pass those costs on to their customers . Weather patterns are always a factor in reefer trade , and as climate patterns become increasingly unpredictable , shifted harvest timelines could further strain equipment availability in 2025 . Still , analysts expect the market to
Reefer shippers will be keeping a close eye on the next ILA deadline , as perishable cargoes are vulnerable to spoilage .
remain largely stable in the coming year , with equipment availability easing as South American beef exports wane .
The next inflection : As in dry container trade , one of the biggest unknowns going forward for reefer shippers is when the Red Sea will become safe enough for carriers to resume transiting the Suez Canal . Extended voyages around southern Africa are currently tying up both reefer equipment and vessel capacity , and a resumption of the Suez Canal routings would immediately release that supply back into the market , putting downward pressure on rates .
email : laura . robb @ spglobal . com www . joc . com January 6 , 2025 | Journal of Commerce 35