The specialised reefer fleet is set for a swathe of scrapping as the global sulphur cap kicks in and more modern boxships snare an ever greater market share of the perishables trade.
The latest annual reefer trade outlook from Dynamar makes for grim reading for those in the dedicated reefer trades.
“Specialised conventional carriers, including this year’s market leaders Baltic Shipping and Seatrade, are being forced to focus on an increasingly tight number of trades and are likely to fall victim the coming volatility on the back of IMO 2020. The conventional fleet’s high average age, combined with fuel hungry engines, has primed the conventional sector for a surge in scrapping due to rates remaining low and higher costs on the horizon,” Dynamar noted in its annual reefer report.
Major market movers, including global fruit traders Chiquita and Del Monte, continue to transfer their trade to boxes, Dynamar noted.