One of the major drivers for the growth of the global reefer container market is the increase in the number of trade routes. In April 2019, a new land–sea freight route was launched, linking south-western China's Chongqing municipality and Indonesia. As of September 2019, the new international land–sea trade corridor connected 190 ports in 90 countries. Moreover, with the growing Asian dominance in world shipping, it is expected that global trade routes will continue to redirect toward the Asian continent. Further, maritime transport continues to be the backbone of world trade, as the majority of cargo, by volume, is transported by the sea. Due to these factors, the market is expected to grow from 2,915.6 thousand twenty-foot equivalent units (TEU) volume in 2019 to 5,981.6 thousand TEU in 2030, at a CAGR of 7.3% during the forecast period (2020–2030).
Chilled Bifurcation to Grow at Higher Rate throughout Forecast Period
The reefer container market is classified into chilled and frozen products, on the basis of commodity. Of these, the chilled classification is expected to grow at higher pace during the forecast period. Further, chilled commodities are categorized into fruits, vegetables, dairy and poultry, and others (bakery products, ready-to-eat [RTE] meals, and noodles). The dairy and poultry category is expected to witness the highest CAGR during the forecast period. According to the Food and Agriculture Organization (FAO) of the United Nations (UN), the global milk output in 2018 was estimated at 843 million tons, driven by the production increase in India, Turkey, European Union (EU) countries, the U.S., and Argentina.
Further, the reefer container market, on the basis of transportation mode, is categorized into seaways, roadways, and railways. In 2019, the seaways category held the largest market share, and it is expected to maintain its dominance over the forecast period. Freight transport is the physical process of transporting commodities, merchandise goods, and cargo. Furthermore, merchant shipping is key for a growing world economy, conducting 90% of the international trade, via more than 100,000 merchant vessels.
Globally, the LAMEA reefer container market is expected to witness the highest CAGR during the forecast period. Among the countries in the LAMEA region, Brazil is expected to witness the widest adoption of reefer containers, owing to the shifting inclination toward technological innovation, coupled with a rise in chilled- and frozen-food trade with other developing economies of the world, such as China and India. Further, the country is also home to the largest logistics industry in the region, contributing revenue of around $145 billion in 2019, to the regional logistics sector.
The COVID-19 outbreak has caused companies in the global transportation and logistics industry to face economic stress, due to liquidity, labor, contract, and other issues, and resulted in ceased payment to employees and a severe decline, of ~15%, in the global trade. Moreover, the partial or complete interruption in operations and trade across regions has resulted in adverse effects on the international supply chain and a threat to the reefer container market, post COVID-19.
Partnerships Are Strongest Strategic Measure Taken by Players in Market
Players in the reefer container market are consistently focusing on strategic partnerships and business mergers to remain competitive in the market. For example, in March 2020, Neptune Pacific Line (Neptune) bought liner shipping business Pacific Direct Line (PDL) from Pacific International Lines (PIL). The combined business will link transport, warehousing, depots, and customs clearance services and fully integrate customers’ supply chains across 18 South Pacific markets.
Browse report overview with detailed TOC on "Reefer Container Market Research Report: By Size (20 Feet 40 Feet, More than 40 Feet), Transportation Mode (Seaways, Railways, Roadways), Commodity (Chilled, Frozen) - Global Industry Analysis Share, Size and Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/reefer-container-market-report
Similarly, in February 2020, A.P. Moller - Maersk A/S acquired Performance Team LLC, to further strengthen the capabilities of the former company as an integrated container logistics company offering end-to-end supply chain solutions. Performance Team LLC offers business-to-business (B2B) and business-to-consumer (B2C) distribution solutions in the retail, wholesale, and e-commerce sectors, with 24 warehousing sites.
Some of the major players operating in the global reefer container market are A.P. Moller - Maersk A/S, Singamas Container Holdings Ltd., China International Marine Containers (Group) Co. Ltd., Seaco Srl, Triton International Ltd., MSC Mediterranean Shipping Company S.A., Hapag-Lloyd AG, Ocean Network Express Pte. Ltd., ZIM Integrated Shipping Services Ltd., and SeaCube Container Leasing Ltd.