Risks in the Refrigerated Container Market in 2025

While growth is expected in the refrigerated container (reefer) market in 2025, the sector faces various risks and challenges. Rising equipment demand and market expansion are intensifying competition, while operational disruptions stemming from port labor negotiations pose a particular threat to perishable cargo.

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Global trends in 2024 placed pressure on the cold chain, with agricultural product exports from South America increasing notably. However, extended transit times around Africa are creating additional pressure on equipment availability. This situation is heightening sensitivity to operational disruptions in refrigerated cargo transportation.

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In the container shipping sector, high profitability was achieved in 2024, with expectations for this to continue into 2025. However, geopolitical factors and capacity oversupply are affecting the supply-demand balance. Particularly strong demand from Asia and route adjustments via the Suez Canal are keeping vessel supply tight, potentially causing annual fixed-rate agreements to exceed 2024 levels.

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Tightening decarbonization measures in Europe are raising carrier costs. CMA CGM expects current Emissions Trading System (ETS) surcharges to increase by approximately 75 percent in 2025. These cost increases will be passed on to customers and will raise expenses for refrigerated cargo transportation.

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Furthermore, a potential shortage of green fuels is also causing concern in the sector. Hapag-Lloyd CEO Rolf Habben Jansen stated that despite the rise in dual-fuel vessels in coming years, the inadequate availability of green fuels is among their greatest concerns. This situation could adversely affect environmentally friendly transportation objectives.

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In conclusion, while growth in the refrigerated container market is projected for 2025, factors such as operational disruptions, rising costs, and environmental regulations stand out as significant risks that industry players must monitor closely.

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Key Points:

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• Growth is expected in the refrigerated container market in 2025, but risks such as operational disruptions and increased competition exist.Joc

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• Extended transit times around Africa are creating pressure on equipment availability.Joc

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• Tightening decarbonization measures in Europe are raising carrier costs, which will be passed on to customers.Joc

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• A potential shortage of green fuels is threatening environmentally friendly transportation objectives.Joc

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• Capacity oversupply and geopolitical factors in the container shipping sector are affecting the supply-demand balance and intensifying competition.Joc

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News Link: https://www.joc.com/article/reefer-market-growth-in-2025-filled-with-risk-5911954

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