Refrigerated sea transportation: Key market research findings
- Introduction of vessel sharing agreement
- Increase in demand for large-capacity reefer vessels
Technavio has released a new market research report on the global refrigerated sea transportation market, which is expected to grow at a CAGR of 4% between 2016 and 2020. An increase in international trade and the growing demand for refrigerated transportation of perishable goods are driving the growth of this market. South America dominates the global market for refrigerated sea transportation, accounting for 35% of the overall market share. The market growth in this region is driven by an increase in the export of perishable products across long distance trade routes and the heavy investments being made to improve port infrastructure. Many Chinese shipping companies are also expanding their business to South America as a result of this region’s rapid market growth.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“One of the interesting trends that this market is witnessing is the vessel sharing agreement concept. Several shipping companies are pooling their resources and sharing reefer vessels on stipulated international sea trade routes. Under this concept, generally two or more shipping companies share container space for optimum capacity utilization, thus minimizing their operational costs. For instance, Maersk Line and MSC recently entered into a 10-year agreement, approved by US Federal Maritime Commission, to conduct shared shipping trade on the Asia-Europe reefer trade route,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research
The refrigerated sea transportation market is witnessing increased demand for large-capacity vessels with high engine capacity, high bollard pull, large dock space, and increased storage capacity. These vessels are incorporated with latest technologies and have better utilization rate. Also, these vessels generate higher revenues owing to their large cargo capacities. Moreover, the vessel operators are also opting for 40-feet containers, as they can load extra cargo with no extra freight charges.
The major players leading the global refrigerated sea transportation market include CMA CGM, Maersk, Mediterranean Shipping Company, NYK Line, and Seatrade Reefer Chartering. The market is capital intensive and requires vessels to adopt sophisticated technologies. The major challenges faced by the vendors in this market are the expenses incurred for the maintenance of vessels and the depreciation in the value of reefer vessels.
A more detailed analysis is available in the Technavio report, Global Refrigerated Sea Transportation Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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