By John Fossey

One of the overriding concerns addressed by speakers at the recent Cool Logistics conference in Hamburg was a looming crisis in reefer equipment. This problem could manifest itself as early as next year with importers/exporters having to pay significantly more for their ocean carriage and logistics services.

'I see 2010 as the perfect storm,' said Thomas Eskesen, senior director of reefer management at Maersk Line. 'The availability of equipment is extremely tight and with global reefer trade likely to be back to 2008 levels next year, rates will rise.

Taking part in a key discussion panel looking at the reefer industry's prospects in 2010, Eskesen encouraged shipper/consignees to sit down as soon as possible to discuss their service contracts and requirements for next year.

'We for one will not be investing in reefers next year as our parent company will be targeting the oil sector,' explained the executive. This could be highly significant as the Danish operator is by some distance the world's biggest ocean carrier of perishable products.

His views were endorsed by Claus Peter Ellemann-Jensen, vice president of reefer trades for CMA CGM and Michaela Steineker, global reefer co-ordinator for Hamburg Sud. While both have taken delivery of new equipment this year and Steineker pointed to a recent order by Hamburg Sud for several hundred new containers, both foresaw difficulties on the horizon.

'The amount of equipment is levelling off as is the provision of electrical plugs on ships despite the high lay-up figures,' explained Ellemann-Jensen. 'The fact that only 25% of reefer plugs may be utilised globally means nothing. What counts is what is happening in the north south trades and here, even now, utilisation is very high.'  

The problem affects both the specialised and container sector as there are practically no specialised ships on order and the container manufacturing industry's almost 'shut up shop'. Indeed, this year will see no more than 30,000/35,000 FEU produced, compared with an average output of 100,000/110,000FEU in the past decade.

This will be insufficient to cover replacement needs and while some service providers will extend the usage of their equipment beyond its normal retirement age, a supply crunch is on the cards.

Moreover, potentially, the risks associated with using older insulated containers and refrigerated machinery leads to more insurance cargo claims.

Next year it seems shippers/consignees will not only have to pay more but will run the risk of their cargo not arriving in such good condition on more occasions.

While estimates vary as to the size of the global maritime reefer market, the consensus is that it will amass approximately 77 million tonnes this year, down about 4% on 2008's level.

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