Drewry expects 2024 to be the second-highest year on record for dry freight container manufacturing. This is driven by the all-time high quarterly production in 2Q24, followed by July’s output of dry freight and reefer containers exceeding 850,000 teu from factories in China. Manufacturers are reporting full order books until mid-October.
The provision of containers in the numbers and locations where they are required has become a challenge because of the strong exports from Asia, congestion at large container transshipment hubs, and declining container productivity due to the extended voyage caused by the Red Sea crisis.
In particular, the availability of 40 ft high-cube containers, which are the workhorses of the industry, has become increasingly tight, with more boxes needed to move the same volume of cargo. In the first seven months of 2024, 1.4 million units were delivered, up from just 125k units in the same period of 2023, indicating a tenfold surge year on year.
Production of reefer boxes also increased in the second quarter, but the numbers were still in the range we have seen over the last several quarters. The tonnage of reefer cargo on routes, which would normally include the Red Sea, fell by more than 5% YoY in 2023, well before the start of the recent supply chain issues. A similar trend was seen on the broader market with a 0.7% YoY decrease in global seaborne reefer trade, following the 1.5% YoY decline in 2022 and signaling the relative weakness of the sector.
Container Census and Leasing Annual Review and Forecast
You can find more information on the shipping container market in Drewry’s comprehensive annual market review and outlook titled Container Census & Leasing Annual Report, with quarterly market updates in the Container Equipment Forecaster.
Reefer Shipping Forecaster
Providing concise, quarterly updates on reefer shipping trade development, vessel capacity, container equipment availability, freight rates and trade route development. The quarterly Reefer Shipping Forecaster offers a unique, regular outlook on market dynamics.
Source: CSN Shipping News
