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The reefer container market in the second quarter of this year remains under pressure from continuing Red Sea disruptions, extended voyage times, and shifting shipping alliances
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Current rates remain elevated although rates are seen to remain stable in the second quarter with slight hikes on some trades owing to seasonal demand and tight equipment supply
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Reefer volumes continue to rise, especially on trades from South America to Europe, and Asia to the Middle East
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Reefer container volumes are forecast to grow from 4 million TEU in 2023 to 7.1 million TEU by 2030, driven by pharma, e-commerce, and perishable trade
The reefer container market in the second quarter of the year remains under pressure from continuing Red Sea disruptions, extended voyage times, and shifting shipping alliances, according to the latest Ocean Reefer Market Update from DHL Global Forwarding.
Vessel schedules and equipment availability, particularly on Asia–Europe and Transatlantic trades, are being impacted by rerouting via the Cape of Good Hope, the update said.
Capacity from South America and Africa is tightening as a result of peaking seasonal demand for perishables, it added.
Then too, service patterns, especially on the Transatlantic westbound where capacity cuts are most visible, are being affected by evolving shipping alliance structures.
The US trade policy is also prompting a rethink by some exporters of routing and market priorities. The latest proposals target China’s maritime and logistics sectors creating uncertainty, DHL said. One of these proposals is the slapping of high fees on Chinese-built ships docking at US ports to boost domestic shipbuilding, leading to fears of higher shipping costs.
The update noted current rates remain elevated especially on long routes such as Asia-Europe and Africa-Europe. This is due to longer voyages caused by the Red Sea crisis, the pressure arising from the fresh fruit season, and some ports being congested.
But overall, rates are seen to remain stable in the second quarter but with slight hikes on some trades owing to seasonal demand and tight equipment supply, DHL said.
Port congestion and labor actions in Northern Europe are currently causing delays and adding pressure to cold chain operations.
The end of the ceasefire between Israel and Hamas has dashed hopes for reopening the Red Sea corridor. Major carriers like Maersk and Hapag- Lloyd confirm they won’t resume Suez routes, at least in the first half of this year.
Latin America is facing a reefer equipment deficit–up to 73% shortage–driven by peak export season and longer round trips due to rerouting.
Reefer volumes continue to rise, especially on trades from South America to Europe, and Asia to the Middle East. The buildup to Northern Hemisphere summer will increase demand for reefer imports (i.e., fruits, vegetables, and seafood), tightening capacity on certain trade lanes.
After early 2024 rate spikes, the second quarter is expected to see a plateau – still elevated due to extended routing but less volatile.
Reefer container volumes are forecast to grow from 4 million TEU in 2023 to 7.1 million TEU by 2030, driven by pharma, e-commerce, and perishable trade.
The second quarter marks peak season for South American perishables, including Chilean grapes, blueberries, and citrus from Argentina and Uruguay. Exporters are facing delays and cargo backlogs due to reefer equipment shortages and longer vessel routing.
More shippers are adopting CA reefer technology to extend shelf life for sensitive produce like bananas, avocados, and berries, especially with rerouted voyages adding up to 10 extra days.
Delays at major European entry ports like Rotterdam, Antwerp, and Hamburg are impacting cold chain efficiency, with reports of reefer plug point shortages.
Dry freight rates have been declining since January. Rates are now 75% below their 2021 peak but remain above pre-pandemic levels.
Dry freight rates are expected to rise in May and June as early peak season kicks in with continued avoidance of the Suez canal.
DHL predicts increasing port congestion, potential tariff changes, and ongoing geopolitical tensions are likely to influence future rate developments. Reefer rates are expected to remain stable in the second quarter, with slight increases on select trades due to equipment tightness and seasonal demand.
Shift to new carrier alliances has led to longer vessel turnaround times, reduced cargo flow, and heightened backlogs in already pressured port operations.
Port congestion in Europe has worsened, with over 935,000 TEU waiting at North European and Mediterranean anchorages, accounting for 32% of the global total.
Poor weather has also affected ports in Iberia, and Piraeus faced increased delays. In Northern Europe, Hamburg and Rotterdam remain severely congested, with Antwerp, Le Havre, and Southampton also experiencing longer berthing delays.
Gemini Cooperation services, which had maintained a 90% schedule reliability, saw over 25% of its ships delayed at European ports last week, particularly affecting Transatlantic services.
Congestion in China and Southeast Asia are disrupting schedules further due to ongoing adverse weather.
In February, global schedule reliability increased by 3.6 percentage points month-on-month, reaching 54.9%, the highest level since May 2024.
Year-on-year, the February figure was up by 1.8 percentage points.
In February 2025, the month it began operations, Gemini Cooperation achieved a schedule reliability of 94.0% in origin ports, followed by MSC with 79.6% and Premier Alliance at 60.4%.
Reliability is expected to increase again once new alliance networks are fully up and running, according to the DHL forecast.
