Cold Chain Market Report

Special Report

Reefer shippers face longer booking times , container shortages amid port congestion

By Keith Wallis

Port congestion in Brazil and Asia has compounded reefer equipment shortages and vessel delays . Stefan Lambauer / Shutterstock . com

Shippers of perishables and other refrigerated ( reefer ) cargoes are having to book further ahead to secure vessel space while also facing similar delays and congestion issues as dry cargo shippers , carriers and forwarders say . The problems are especially challenging for Asian exports , although in Brazil , a combination of equipment shortages , congestion and port projects are having a critical impact on inbound and outbound reefer shipments .

But insurers said the difficulties have yet to materialize in a noticeable rise in claims for spoiled cold chain or perishable products .

Peregrine Storrs-Fox , risk management director at cargo insurer Through Transport Mutual Services ( UK ), said there was no evidence the current congestion and cargo delays had led to a change in reefer cargo losses .

“ The operation of insurance terms , such as deductibles / excesses , may mean that many losses are simply absorbed by the cargo interests , beneficial cargo owners or the logistics operators or carriers ,” Storrs-Fox told the Journal of Commerce .

Highlighting the challenges faced by reefer shippers , Dubai-based FIBS Logistics said they are booking further in advance to secure space onboard vessels due to capacity and equipment shortages for reefer exports from Asia . FIBS makes regular reefer shipments from Asia , mainly Malaysia and South Korea , to Dubai .

“ Around six to nine months ago , we could arrange reefer bookings up to about two weeks before a vessel ’ s estimated departure ,” a spokesperson for FIBS told the Journal of Commerce . “ Now , advance booking needs to be made three to four weeks before a vessel ’ s [ expected departure ].”

At the same time , carriers and forwarders said port congestion and delays are affecting reefer shipments across major trade lanes , from Asia to Europe and the Americas .

Results may vary

Vessel delays vary considerably by trade lane and specific service . Carriers ’ sailing schedules currently show an average of a week to two-week delay on trans-Pacific services and 10 to 14 days on Asia – Europe services , although on some sailings that has lengthened to 30 days . There is slippage of up to two weeks on Asia – Mediterranean services , while intra-Asia services are facing delays of two or three days despite several port omissions , especially if they are calling at Singapore .

“ Similar to dry cargo , reefer cargo has also been affected by vessel delays and port congestion at some ports ,” a spokesperson for OOCL told the Journal of Commerce . “ However , our reefer cargos are always being monitored . So far , we have not seen any significant issues with them , even perishable goods .”

Hapag-Lloyd said there are still significant berthing delays for vessels at some ports in Asia . These include up to nearly six days in Brisbane , Australia ; five days in Singapore , four days in Shanghai and two days in Qingdao and at the Westports terminal at Port Klang , Malaysia , Hapag-Lloyd said on June 12 .

Forwarders said the situation at Westports has been exacerbated by carriers diverting vessels to the port to avoid congestion at Singapore . This has increased yard utilization at Westports , which is already space constrained .

“ Westports is suffering serious congestion when compared with Northport ,” the spokesperson for FIBS Logistics said .

30 Journal of Commerce | July 1 , 2024 www . joc . com