News / Shippers struggle to find capacity amid growing shortage of reefers

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US perishables exporters say they are struggling to secure enough temperature-controlled containers and trucks and face tight capacity and particularly strong demand for reefer boxes.

Recently logistics providers have reported a serious shortage of reefers at the port of Houston and less-pronounced availability problems at Philadelphia and Virginia.

This has been largely blamed on a double-digit surge in refrigerated imports from Asia, led by a 30% increase in seafood.

And this coincides with the start of produce exports from the southern hemisphere: carriers have reported strong volumes out of Argentina and Chile amid expectations of large crops.

Shippers there also face a shortfall of available reefer equipment. According to specialist Metro, South American exporters have struggled with a 73% shortage of reefer boxes.

Other markets are facing difficulties too. Vietnam-based logistics provider Seahorse Shipping notified customers that reefer capacity had become increasingly tight, pointing to an estimated 10% increase in global demand this year. And Europe has seen a 19% shortfall in reefer containers, Metro reported.

In DHL Global Forwarding’s update on the ocean reefer market in the fourth quarter, it warned shippers of equipment shortages in Oceania and India, and also signalled low availability in South America and South Africa. And Hong Kong-based forwarder Dimerco reported the supply shortage had also affected intra-Asian traffic lanes.

Longer transit times, owing to the extended routings out of Asia to avoid the Red Sea, have exacerbated the problem. According to DHL GF, this has removed 7% of global capacity.

In addition, worries about a second US east/Gulf coast port strike may have prompted US perishables importers to bring in supplies early to avoid disruption, further straining capacity. DHL told customers to consider conversion from ocean to air cargo, especially for critical lanes.

Shortages of reefer trucks have also been reported on US roads this month; they were in short supply in the states of Idaho and Washington, and previously there were occasional shortages in Florida and the Chicago area.

One factor behind this has been fewer trucking providers after small players left the market under the strain of the lasting freight recession that has depressed rates. Cancellations of carrier authorities have averaged about 7,000 a month this year, according to DAT Freight & Analytics.

US reefer shippers have also seen a rise in tender rejections from trucking providers. Since early October, these have averaged over 14%, up from 8% in October 2023. Predictions of a cold winter, which would increase the need for temperature-controlled transport, suggest that the coming weeks may be even tougher for shippers to navigate.

And it is doubtful if 2025 will bring much relief.

“Shippers must carefully plan and adjust their supply chains to mitigate delays and shortages, as reefer container availability remains strained well into 2025,” Metro warned.

According to DHL, reefer volumes are expected to grow at 2.2% CAGR through to 2028.