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Dynamar (2020) Reefer Analysis Market Structure, Conventional, Containers

Dynamar B.V. Robijnstraat 74 1812 RB ALKMAAR The Netherlands Tel: +31 72 514 74 00 E-mail: [email protected] Website: www.dynamar.com

Dynamar (2020) Reefer Analysis Market Structure, Conventional, Containers

December 2020

Dynamar B.V. Robijnstraat 74 1812 RB ALKMAAR Tel: +31 72 514 74 00 E-mail: [email protected] Website: www.dynamar.com

Authors Frans Waals, Senior Shipping Consultant Jonathan Mummery, Consultant

All rights reserved. No part of this publication may be reproduced, distributed, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without explicit permission of the publisher.

While the information contained in this report is presented in good faith, it frequently involves estimates where no current published data is available. This information, believed to be accurate, can therefore not be guaranteed. The publishers cannot accept liability of any errors or omission.

Table of contents 5

TABLE OF CONTENTS

Table of contents ...... 5

List of tables ...... 9

List of figures ...... 14

1 Introduction ...... 16

2 History and background ...... 20 2.1 The development of reefer shipping ...... 20 The advent of reefer shipping ...... 20 Refrigerated deepsea shipping takes off ...... 20 Evolution of the conventional reefer ship ...... 21 The refrigerated container ...... 21 2.2 Deterioration ...... 22 Introduction ...... 22 Ventilation ...... 23 Temperature ...... 24 Relative humidity ...... 26 Ripening gases ...... 26 Modified and controlled atmospheres...... 26 2.3 Reefer container technology ...... 28 Container dimensions ...... 28 Refrigeration machinery ...... 28 Scroll or reciprocating compressor? ...... 29 Unit environmental considerations ...... 30

3 World perishables trades ...... 31 3.1 Introduction and methodological issues ...... 31 3.2 Overall trade volumes ...... 33 3.3 Dairy...... 34 3.4 Fishery Products ...... 36 3.5 Fruit ...... 38 Bananas ...... 40 Citrus fruit ...... 42 Deciduous fruit...... 43 Tropical fruit ...... 45 3.6 Meat ...... 47 3.7 Vegetables ...... 49

4 Major import regions ...... 53 4.1 Introduction ...... 53 4.2 United States ...... 54 4.3 European Union ...... 58 4.4 Russia ...... 63 4.5 China ...... 65 4.6 Japan ...... 69 6 Dynamar (2020) Reefer Analysis

5 Seaborne trade ...... 71 5.1 Introduction ...... 71 5.2 Seaborne perishables volumes ...... 71 5.3 Conventional reefer ships versus container vessels ...... 71 5.4 Geographical coverage ...... 73 Conventional reefer shipping ...... 73 South America ...... 75 Central America and the Caribbean...... 77 Sub-Saharan Africa and Morocco ...... 79 Mediterranean ...... 81 Australasia ...... 82

6 Major reefer ports ...... 83 6.1 Introduction ...... 83 6.2 South America ...... 83 Chile ...... 83 Peru...... 86 Bolivia ...... 87 Ecuador ...... 88 Brazil ...... 90 Uruguay ...... 93 Paraguay ...... 94 Argentina ...... 95 6.3 Central America and Caribbean ...... 97 Colombia ...... 97 Venezuela ...... 99 Guyana ...... 100 Suriname ...... 101 French Guiana ...... 102 Panama...... 103 Costa Rica ...... 104 Nicaragua ...... 106 Honduras ...... 107 El Salvador ...... 108 Guatemala ...... 109 Mexico ...... 111 Belize...... 113 Caribbean Islands ...... 114 6.4 Sub-Saharan Africa and Morocco ...... 116 Kenya ...... 116 Tanzania ...... 118 Mozambique ...... 119 Zimbabwe ...... 120 Swaziland (Eswatini) ...... 121 South Africa ...... 121 Namibia ...... 123 Cameroon ...... 124 Ghana ...... 125 Ivory Coast ...... 126 Senegal ...... 128 Mauretania ...... 129 Morocco ...... 130 6.5 Mediterranean...... 132 Tunisia ...... 132 Table of contents 7

Algeria ...... 133 Libya ...... 134 Egypt ...... 134 Israel ...... 135 Lebanon ...... 137 Syria ...... 138 Turkey ...... 139 6.6 Australia and New Zealand ...... 141 Australia ...... 141 New Zealand ...... 143

7 Development of the reefer shipping market ...... 147 7.1 Introduction ...... 147 7.2 The 2020 reefer market ...... 148 7.3 The 2019 reefer market ...... 150 7.4 The 2018 reefer market ...... 151

8 The conventional reefer ship fleet ...... 155 8.1 Fleet overview ...... 155 8.2 Deliveries ...... 156 8.3 Newbuildings ...... 158 8.4 Demolitions ...... 158 8.5 Future fleet development...... 160

9 Major conventional reefer ship operators ...... 161 9.1 Introduction ...... 161 9.2 Africa Express Line ...... 162 9.3 Baltic Reefers ...... 163 9.4 Boyang ...... 164 9.5 Cosiarma ...... 165 9.6 Dole Ocean Cargo Express ...... 166 9.7 Fresh Carriers ...... 167 9.8 Frigoship ...... 168 9.9 Geest Line ...... 169 9.10 GreenSea ...... 170 9.11 Maestro Shipping...... 171 9.12 Network Shipping ...... 172 9.13 Seatrade ...... 173 9.14 Sein Shipping ...... 174 9.15 Silver Sea ...... 175 9.16 Star Reefers ...... 176

10 Containership fleet ...... 179 10.1 Fleet developments ...... 179 10.2 Fleet by operator ...... 184 10.3 Reefer containers ...... 184 8 Dynamar (2020) Reefer Analysis

11 Reefer container trades ...... 188 11.1 Introduction ...... 188 11.2 West Coast South America ...... 188 WCSA-Far East ...... 188 WCSA-United States ...... 190 WCSA-Europe ...... 192 11.3 East Coast South America trade ...... 194 ECSA-Far East ...... 194 ECSA-United States ...... 195 ECSA-Europe ...... 196 11.4 Central America/Caribbean ...... 197 ECCA/Caribbean-Far East ...... 197 ECCA/Caribbean-United States ...... 198 ECCA/Caribbean-Europe ...... 199 11.5 Africa ...... 200 Africa-Far East ...... 200 Africa-United States ...... 203 Africa-Europe ...... 204 11.6 Australia/New Zealand ...... 207 Australia/New Zealand-Far East ...... 207 Australia/New Zealand-United States ...... 210 Australia/New Zealand-Europe ...... 211 11.7 Summary ...... 212

12 Container ship operators ...... 213 12.1 Introduction ...... 213 12.2 CMA CGM ...... 215 12.3 Cosco Shipping ...... 217 12.4 Evergreen ...... 220 12.5 Hapag-Lloyd ...... 222 12.6 HMM ...... 224 12.7 Maersk ...... 226 12.8 MSC ...... 228 12.9 Ocean Network Express ...... 230 12.10 PIL 232 12.11 Yang Ming ...... 234

13 Bibliography ...... 236

Table of contents 9

LIST OF TABLES

Table 1: Classification of storage temperature ...... 25 Table 2: Optimal transport temperatures for selected perishable products ...... 25 Table 3: Common cooling methods ...... 26 Table 4: Incompatibility of perishable cargoes ...... 27 Table 5: Preferred 02 and CO2 concentration for a selection of perishable products ...... 28 Table 6: Reefer container dimensions ...... 28 Table 7: Overall worldwide perishables trade ...... 34 Table 8: Worldwide dairy trade...... 35 Table 9: Worldwide fishery products trade...... 37 Table 10: Worldwide fruit trade ...... 39 Table 11: Characteristic differences between plantains and bananas ...... 40 Table 12: Banana exports by commodity and by main exporting country ...... 41 Table 13: Citrus exports by commodity and by main exporting country ...... 43 Table 14: Deciduous fruit exports by commodity and by main exporting country ...... 45 Table 15: Tropical fruit exports by commodity and by main exporting country ...... 47 Table 16: Shelf life of chilled meat ...... 48 Table 17: Worldwide meat trade ...... 49 Table 18: Worldwide vegetables trade ...... 51 Table 19: Vegetables exports by single commodity ...... 52 Table 20: US imports by region, commodity and type of produce ...... 54 Table 21: US imports by commodity and region/country of origin, 2019...... 55 Table 22: US exports by region, commodity and type of produce ...... 56 Table 23: US exports by commodity and region/country of destination, 2019 ...... 57 Table 24: EU imports by region, commodity and type of produce ...... 58 Table 25: EU imports by commodity and region/country of origin, 2019 ...... 59 Table 26: EU exports by region, commodity and type of produce...... 60 Table 27: EU exports by commodity and region/country of destination, 2019 ...... 61 Table 28: Intra-EU trade (imports and exports per country) ...... 62 Table 29: Russian imports by region, commodity and type of produce ...... 63 Table 30: Russian imports by commodity and region/country of origin, 2019 ...... 64 Table 31: Chinese imports by region, commodity and type of produce ...... 65 Table 32: Chinese imports by commodity and region/country of origin, 2019 ...... 66 Table 33: Chinese exports by region, commodity and type of produce ...... 67 Table 34: Chinese exports by commodity and region/country of destination, 2019...... 68 Table 35: Japanese imports by region, commodity and type of produce ...... 69 Table 36: Japanese imports by commodity and region/country of origin, 2019 ...... 70 Table 37: Conventional reefer ship calls ...... 74 Table 38: Perishable exports (tons) from South America, 2019 ...... 75 Table 39: Summary of reefer ports in South America ...... 77 Table 40: Perishable exports (tons) from Central America and Caribbean, 2019 ...... 78 Table 41: Summary of reefer ports in Central America and Caribbean ...... 79 Table 42: Perishable exports (tons) from Sub-Saharan Africa and Morocco 2019 ...... 80 Table 43: Summary of reefer ports in Sub-Saharan Africa and Morocco ...... 80 Table 44: Perishable exports (tons) from the Mediterranean, 2019 ...... 81 Table 45: Summary of reefer ports the Mediterranean ...... 81 Table 46: Perishables exports (tons) from Australia and New Zealand, 2019 ...... 82 Table 47: Summary of reefer ports in Australia and New Zealand ...... 82 Table 48: Chilean perishable exports (tons) ...... 83 10 Dynamar (2020) Reefer Analysis

Table 49: Chilean port activity ...... 84 Table 50: Peruvian perishable exports (tons)...... 86 Table 51: Peruvian port activity ...... 86 Table 52: Bolivian perishable exports (tons) ...... 88 Table 53: Ecuadorian perishable exports (tons) ...... 88 Table 54: Ecuadorian port activity...... 89 Table 55: Brazilian perishable exports (tons) ...... 90 Table 56: Brazilian port activity ...... 91 Table 57: Uruguayan perishable exports (tons) ...... 93 Table 58: Uruguayan port activity ...... 94 Table 59: Paraguayan perishable exports (tons) ...... 94 Table 60: Argentinian perishable exports (tons) ...... 95 Table 61: Argentinian port activity ...... 96 Table 62: Colombian perishable exports (tons) ...... 97 Table 63: Colombian port activity ...... 98 Table 64: Venezuelan perishable exports (tons) ...... 99 Table 65: Venezuelan port activity ...... 99 Table 66: Guyana’s perishable exports (tons) ...... 100 Table 67: Guyana’s port activity ...... 100 Table 68: Suriname’s perishable exports (tons) ...... 101 Table 69: Suriname’s port activity ...... 101 Table 70: French Guiana’s port activity ...... 102 Table 71: Panamanian perishable exports (tons) ...... 103 Table 72: Panamanian port activity ...... 103 Table 73: Costa Rican perishable exports (tons) ...... 105 Table 74: Costa Rican port activity ...... 105 Table 75: Nicaraguan perishable exports (tons) ...... 106 Table 76: Nicaraguan port activity ...... 106 Table 77: Honduran perishable exports (tons)...... 107 Table 78: Honduran port activity ...... 108 Table 79: El Salvadorian perishable exports (tons) ...... 109 Table 80: El Salvadorian port activity ...... 109 Table 81: Guatemalan perishable exports (tons) ...... 110 Table 82: Guatemalan port activity ...... 110 Table 83: Mexican perishable exports (tons) ...... 112 Table 84: Mexican port activity ...... 112 Table 85: Belizean perishable exports (tons) ...... 113 Table 86: Belizean port activity ...... 114 Table 87: Dominican Republic perishable exports (tons) ...... 114 Table 88: Dominican Republic port activity ...... 115 Table 89: Guadeloupe/Martinique port activity ...... 116 Table 90: Kenyan perishable exports (tons) ...... 117 Table 91: Kenyan port activity ...... 117 Table 92: Tanzanian perishable exports (tons) ...... 118 Table 93: Tanzanian port activity ...... 118 Table 94: Mozambique’s perishable exports (tons) ...... 119 Table 95: Mozambique’s port activity ...... 119 Table 96: Zimbabwean perishable exports (tons) ...... 120 Table 97: Swaziland’s perishable exports (tons) ...... 121 Table 98: South African perishable exports (tons) ...... 121 Table 99: South African port activity ...... 122 Table 100: Namibian perishable exports (tons) ...... 123 Table 101: Namibian port activity ...... 123 Table 102: Cameroonian perishable exports (tons) ...... 124

Table of contents 11

Table 103: Cameroonian port activity ...... 124 Table 104: Ghanaian perishable exports (tons) ...... 125 Table 105: Ghanaian port activity ...... 126 Table 106: Ivory Coast’s perishable exports (tons) ...... 127 Table 107: Ivory Coast’s port activity ...... 127 Table 108: Senegalese perishable exports (tons) ...... 128 Table 109: Senegalese port activity...... 128 Table 110: Mauritanian perishable exports (tons) ...... 129 Table 111: Mauritanian port activity ...... 130 Table 112: Moroccan perishable exports (tons) ...... 131 Table 113: Moroccan port activity ...... 131 Table 114: Tunisian perishable exports (tons) ...... 132 Table 115: Tunisian port activity ...... 133 Table 116: Algerian perishable exports (tons) ...... 133 Table 117: Egyptian perishable exports (tons) ...... 134 Table 118: Egyptian port activity ...... 134 Table 119: Israeli perishable exports (tons) ...... 136 Table 120: Israeli port activity ...... 136 Table 121: Lebanese perishable exports (tons) ...... 137 Table 122: Lebanese port activity ...... 137 Table 123: Syrian perishable exports (tons) ...... 138 Table 124: Syrian port activity ...... 139 Table 125: Turkish perishable exports (tons) ...... 140 Table 126: Turkish port activity ...... 140 Table 127: Australian perishable exports (tons) ...... 141 Table 128: Australian port activity ...... 142 Table 129: New Zealand’s perishable exports (tons) ...... 143 Table 130: New Zealand’s port activity ...... 144 Table 131: Annual average time charter equivalent (USD per cu.ft./30 days), for two ships types ...... 148 Table 132: Conventional reefer ship capacity by size class, Mid-2020 ...... 155 Table 133: TEU capacity of conventional reefer ships by size class, Mid-2020...... 155 Table 134: Age by size class, Mid-2020 ...... 156 Table 135: Demolitions 2019-2020 ...... 158 Table 136: Conventional reefer ship operators ranking ...... 161 Table 137: Conventional reefer ship fleet of Africa Express Line, by end-2020 ...... 163 Table 138: Conventional reefer ship fleet of Baltic Reefers/Cool Carriers, by mid-2020 ...... 164 Table 139: Conventional reefer ship fleet of Boyang, by end-2020 ...... 165 Table 140: Conventional reefer ship fleet of Cosiarma, by end-2020 ...... 166 Table 141: Conventional reefer ship fleet of Dole Ocean Cargo Express, by end-2020 ...... 167 Table 142: Conventional reefer ship fleet of Fresh Carriers, by end-2020 ...... 168 Table 143: Conventional reefer ship fleet of Frigoship, by end-2020 ...... 169 Table 144: Conventional reefer ship fleet of Geest Line, by end-2020 ...... 170 Table 145: Conventional reefer ship fleet of GreenSea, by mid-2020 ...... 171 Table 146: Conventional reefer ship fleet of Maestro Reefers, by end-2020 ...... 171 Table 147: Conventional reefer ship fleet of Network Shipping, by end-2020 ...... 173 Table 148: Conventional reefer ship fleet of Seatrade, by end-2020 ...... 174 Table 149: Conventional reefer ship fleet of Sein Shipping, by mid-2020 ...... 175 Table 150: Conventional reefer ship fleet of Silver Sea, by end-2020 ...... 176 Table 151: Conventional reefer ship fleet of Star Reefers, by end-2020 ...... 177 Table 152: Cellular containership fleet by size category, 1 July 2020 ...... 179 Table 153: Top-25 container operators’ fleet and orderbook, 1 July 2020 ...... 184 Table 154: Container fleet owned by Top-10 reefer box leasing companies (at the end of each year) ..... 187 Table 155: Services between West Coast South America and Far East ...... 189 Table 156: Trade capacity development between West Coast South America and Far East ...... 189 12 Dynamar (2020) Reefer Analysis

Table 157: Carriers involved in the West Coast South America-Far East trade ...... 190 Table 158: Services between West Coast South America and US West Coast ...... 190 Table 159: Trade capacity development between West Coast South America and US West Coast ...... 191 Table 160: Carriers involved in the West Coast South America and US West Coast trade ...... 191 Table 161: Services between West Coast South America and US East Coast ...... 191 Table 162: Trade capacity development between West Coast South America and US East Coast ...... 192 Table 163: Carriers involved in the West Coast South America-US East Coast trade ...... 192 Table 164: Services between West Coast South America and Europe ...... 193 Table 165: Trade capacity development between West Coast South America and Europe ...... 193 Table 166: Carriers involved in the West Coast South America-Europe trade ...... 194 Table 167: Services between East Coast South America and Far East ...... 194 Table 168: Trade capacity development between East Coast South America and Far East ...... 194 Table 169: Carriers involved in the East Coast South America-Far East trade ...... 195 Table 170: Services between East Coast South America and US East Coast ...... 195 Table 171: Trade capacity development between East Coast South America and US East Coast ...... 195 Table 172: Carriers involved in the East Coast South America and US East Coast trade ...... 196 Table 173: Services between East Coast South America and Europe ...... 196 Table 174: Trade capacity development between East Coast South America and Europe ...... 196 Table 175: Carriers involved in the East Coast South America-Europe trade ...... 197 Table 176: Services between ECCA/Caribbean and Far East ...... 197 Table 177: Trade capacity development between ECCA/Caribbean and Far East ...... 197 Table 178: Carriers involved in the ECCA/Caribbean -Far East trade ...... 198 Table 179: Services operated by conventional operators between ECCA/Caribbean and US East Coast .. 198 Table 180: Conventional carriers involved in the ECCA/Caribbean and US East Coast trade ...... 199 Table 181: Services between ECCA/Caribbean and Europe ...... 199 Table 182: Trade capacity development between ECCA/Caribbean and Europe ...... 200 Table 183: Carriers involved in the ECCA/Caribbean -Europe trade ...... 200 Table 184: Services between West Africa and Far East ...... 201 Table 185: Trade capacity development between West Africa and Far East ...... 201 Table 186: Carriers involved in the West Africa -Far East trade ...... 202 Table 187: Services between South and East Africa and Far East ...... 202 Table 188: Trade capacity development between South and East Africa and Far East ...... 203 Table 189: Carriers involved in the South and East Africa-Far East trade ...... 203 Table 190: Services between Southern Africa and US East Coast ...... 204 Table 191: Trade capacity development between Southern Africa and US East Coast ...... 204 Table 192: Carriers involved in the Southern Africa-US East Coast trade ...... 204 Table 193: Services between West Africa/Morocco and Europe ...... 205 Table 194: Trade capacity development between West Africa/Morocco and Europe ...... 206 Table 195: Carriers involved in West Africa/Morocco-Europe trade ...... 206 Table 196: Services between Southern Africa and Europe ...... 206 Table 197: Trade capacity development between Southern Africa and Europe ...... 207 Table 198: Carriers involved in the Southern Africa-Europe trade ...... 207 Table 199: Services between Australia/New Zealand and North East Asia ...... 208 Table 200: Trade capacity development between Australia/New Zealand and North East Asia ...... 208 Table 201: Carriers involved in the Australia/New Zealand-North East Asia trade ...... 209 Table 202: Services between Australia/New Zealand and South East Asia ...... 209 Table 203: Trade capacity development between Australia/New Zealand and South East Asia...... 210 Table 204: Carriers involved in the Australia/New Zealand-South East Asia trade ...... 210 Table 205: Services between Australia/New Zealand and United States ...... 210 Table 206: Trade capacity development between Australia/New Zealand and United States ...... 211 Table 207: Carriers involved in the Australia/New Zealand-United States trade ...... 211 Table 208: Services between Australia/New Zealand and Europe ...... 211 Table 209: Trade capacity development between Australia/New Zealand and Europe ...... 211 Table 210: Carriers involved in Australia/New Zealand -Europe trade ...... 212 Table of contents 13

Table 211: Overview of services by trade lane...... 212 Table 212: Carrier’s reefer capacity employed on relevant North-South trades ...... 213 Table 213: Trade lanes covered by container ship operators ...... 213 Table 214: Service co-operations as vessel operators ...... 214 Table 215: Service co-operations as slot takers and providers ...... 214 Table 216: Trade lanes covered by CMA CGM ...... 216 Table 217: Liner fleet composition of CMA CGM, 1 July 2020 ...... 217 Table 218: Trade lanes covered by Cosco Shipping ...... 219 Table 219: Liner fleet composition of Cosco Shipping, 1 July 2020 ...... 219 Table 220: Trade lanes covered by Evergreen ...... 221 Table 221: Liner fleet composition of Evergreen, 1 July 2020 ...... 221 Table 222: Trade lanes covered by Hapag-Lloyd ...... 223 Table 223: Liner fleet composition of Hapag-Lloyd, 1 July 2020 ...... 223 Table 224: Trade lanes covered by HMM ...... 225 Table 225: Liner fleet composition of HMM, 1 July 2020 ...... 225 Table 226: Trade lanes covered by Maersk ...... 227 Table 227: Liner fleet composition of Maersk Line, 1 July 2020 ...... 228 Table 228: Trade lanes covered by MSC ...... 229 Table 229: Liner fleet composition of MSC, 1 July 2020 ...... 229 Table 230: Trade lanes covered by Ocean Network Express ...... 231 Table 231: Liner fleet composition of Ocean Network Express, 1 July 2020 ...... 231 Table 232: Trade lanes covered by PIL ...... 233 Table 233: Liner fleet composition of PIL, 1 July 2020 ...... 233 Table 234: Trade lanes covered by Yang Ming ...... 235 Table 235: Liner fleet composition of Yang Ming, 1 July 2020 ...... 235 14 Dynamar (2020) Reefer Analysis

LIST OF FIGURES

Figure 1: Integral reefer container ...... 22 Figure 2: Factors of decay ...... 23 Figure 3: Stowage of pallets ...... 24 Figure 4: Stuffing of containers ...... 24 Figure 5: Main dairy exporting countries ...... 35 Figure 6: Fish exporting countries ...... 38 Figure 7: Crustaceans and molluscs exporting countries ...... 38 Figure 8: Fruit exporting countries ...... 40 Figure 9: Banana exporting countries ...... 41 Figure 10: Citrus fruit exporting countries ...... 43 Figure 11: Deciduous fruit exporting countries...... 45 Figure 12: Tropical fruit exporting countries ...... 47 Figure 13: Main meat exporting countries ...... 48 Figure 14: Vegetables exporting countries ...... 50 Figure 15: Seaborne perishables trade, 2005-2019 ...... 71 Figure 16: The share of conventional shipping in the reefer segment ...... 72 Figure 17: Main countries for involved in conventional reefer shipping ...... 75 Figure 18: Map of Chile ...... 85 Figure 19: Map of Peru ...... 87 Figure 20: Map of Ecuador ...... 90 Figure 21: Map of Brazil ...... 93 Figure 22: Map of Uruguay...... 94 Figure 23: Map of Argentina ...... 97 Figure 24: Map of Colombia ...... 99 Figure 25: Map of Venezuela ...... 100 Figure 26: Map of Guyana ...... 101 Figure 27: Map of Suriname ...... 102 Figure 28: Map of French Guiana ...... 102 Figure 29: Map of Panama ...... 104 Figure 30: Map of Costa Rica ...... 106 Figure 31: Map of Nicaragua ...... 107 Figure 32: Map of Honduras...... 108 Figure 33: Map of El Salvador...... 109 Figure 34: Map of Guatemala...... 111 Figure 35: Map of Mexico ...... 113 Figure 36: Map of Belize ...... 114 Figure 37: Map of Dominican Republic ...... 116 Figure 38: Map of Kenya ...... 117 Figure 39: Map of Tanzania ...... 119 Figure 40: Map of Mozambique ...... 120 Figure 41: Map of South Africa ...... 123 Figure 42: Map of Namibia ...... 124 Figure 43: Map of Cameroon ...... 125 Figure 44: Map of Ghana ...... 126 Figure 45: Map of Ivory Coast ...... 128 Figure 46: Map of Senegal ...... 129 Figure 47: Map of Mauretania ...... 130 Figure 48: Map of Morocco ...... 132 Figure 49: Map of Tunisia ...... 133 Figure 50: Map of Egypt ...... 135 Figure 51: Map of Israel ...... 137 Table of contents 15

Figure 52: Map of Syria ...... 139 Figure 53: Map of Turkey ...... 141 Figure 54: Map of Australia ...... 143 Figure 55: Map of New Zealand ...... 145 Figure 56: Time Charter Equivalent for reefer ships (2010-2020) ...... 147 Figure 57: Time Charter Equivalent for reefer ships (2020) ...... 150 Figure 58: Time Charter Equivalent for reefer ships (2019) ...... 151 Figure 59: Time Charter Equivalent for reefer ships (2018) ...... 154 Figure 60: Number of ships in service, by year of build ...... 156 Figure 61: Total capacity of ships in service, by year of build ...... 157 Figure 62: Average capacity of ships delivered, by year of build ...... 157 Figure 63: Number of ships demolished, by year of demolition ...... 159 Figure 64: Capacity of ships demolished, by year of demolition ...... 159 Figure 65: Conventional reefer fleet development ...... 160 Figure 66: Number of cellular container ships currently in operation and order book, by year-of-build .. 180 Figure 67: Total capacity of the container ship fleet and order book, by year of build ...... 180 Figure 68: Average size of container ships in operation and order book, by year of build ...... 181 Figure 69: Scrapping by year and TEU capacity ...... 182 Figure 70: Relation between the number of reefer plugs and ship size, by year of build ...... 182 Figure 71: Number of reefer plugs per ship, by year of build ...... 183 Figure 72: (Projected) development of the cellular container ship fleet (as at the end of year) ...... 183 Figure 73: Reefer container fleet (TEU), by year ...... 185 Figure 74: Reefer container production (TEU), by year ...... 185 Figure 75: Reefer container fleet versus total number of reefer plugs of the fleet (TEU/Plug), by year .... 186 Figure 76: Actual reefer carrying capacity ...... 186 Figure 77: Actual reefer carrying capacity: container versus conventional ...... 187 16 Dynamar (2020) Reefer Analysis

1 INTRODUCTION A year like no other. That is how we can surely describe 2020. While at the end of 2019, we expected that IMO2020, the low-sulphur regulation, would set the tone for the year, with lots of fuel-hungry old conventional reefer ships going to the breakers and container operators losing even more money than they usually do, a simple virus changed all of this.

With IMO2020 entering force on 1 January, the spread between HFO had low-sulphur fuels had increased to approximately USD 300/ton. Some container operators had invested in scrubbers or were waiting for their scrubbers to be installed, but for the old conventional reefer ships that was no viable option.

By mid-January, when approaching Chinese New Year, the first alarming messages started to reach the world about a very deadly virus circulating in China. Tracing back its origins showed that the virus must have been around since November, but it took some time for the medics to realise it existed and for the Chinese authorities to admit it. Consequently, just around Chinese New Year (25 January), China started going into lockdown and its factories closed down. Whilst it is usual for China’s exports come to a standstill for a period of around two weeks around that time of year and carriers subsequently reduce their capacity, this year this period extended much longer as there was no production and thus nothing to export.

The situation became worse when infections started appearing in other places in the world. Where the situation in China gradually started to improve, other parts of the world started going in lockdown as well. A lack of supply turned into a lack of demand, forcing carriers to take more sailings out and the idle fleet reached record highs. A financial disaster for the shipping industry seemed in the making.

However, then happened what probably few had counted on. The oil price collapsed and the spread between Heavy Fuel Oil (HFO) and Very Low Sulphur Fuel Oil (VLSFO) reduced to just USD 50/ton, taking the (short term) business case out of scrubber investments. For the conventional reefer sector, however, it was a blessing in disguise. Rather than becoming totally uncompetitive against the container ship, its overall costs actually went down. This would not have helped, if demand had disappeared and their income would have evaporated, but if there is one thing we learned from this crisis, it is people may forgo the latest cheap toy from China, but will continue to eat. Despite obviously affecting reefer logistics, demand keeping up and oil prices going down were a good mix for the conventional reefer operator. As a result, only a single ships was scrapped in the first half of 2020, a record low.

When approaching mid-2020, the worst was (temporarily) over for North America and Europe, countries started to restock and demand for shipboard capacity started to rise. Not so, did the supply of ship capacity, as for the first time since 2020, carriers managed to control themselves and refrain from putting new box space into the market. Jackpot! Increasing demand, low capacity, low fuel costs and high prices. The money started pouring in. Going on, with demand actually rising to above pre-crisis levels, carriers started bringing their ships back into the market. However, due to the rush in demand, their came a shortage of everything, ships, boxes, port capacity, etc. With the end of the year approaching, shippers are still struggling to find boxes and when they have found one, it is a difficult task to get that box on board of a ship. US farmers cannot find boxes for their crops as during the time the container is inland to pick up stuff, the carrier can earn multiple speeding that same container back to China for its next high-payed journey. Idle ship capacity is at a low, ship charter rates are record high and (reefer) container plants are working overtime to build more equipment.

Looking into the crystal ball, this peak will not continue forever. With vaccines becoming available, the world will pick up its normal pace, albeit with a little less wealth. What we learned from this crisis is that people will continue to eat whatever happens, that box carriers can actually control themselves when the crisis is big enough and that life goes on. Most likely, they will also fall back into old habits, ordering too Introduction 17 many ships and continue to compete on prices. Also for the conventional reefer operators life will go back to normal. The ships remain old and continue to use a lot of fuel. And when oil prices go up again, their competitiveness goes down. Regardless, time will tell what happens and 2021 is likely to be a bit more normal than 2020.

Dynamar is proud to present its eleventh consecutive, annual, extensive specialist report Dynamar (2020) REEFER Analysis - Market Structure, Conventional, Containers

This publication builds upon the analysis of the previous years. The study comprises three parts: two separate sections on the different conventional and container reefer trades, based on an extensive write up and one section analysing the structure of the market.

Part I - Reefer market structure(s) After a historical overview on the background and development of reefer shipping, this chapter provides extensive summaries, statistics and concise descriptions of:

 The world perishable trades: volumes by main produce and export regions;  Transport modes and characteristics: transport conditions - modern techniques;  The world’s main import regions: United States, European Union, Russia, China and Japan;  Trading patterns: conventional ships versus container vessels - main export areas - exports by product and individual country;  Major reefer ports: perishable exports by country - description of relevant reefer handling facilities by mode of transportation - port throughput statistics.

Part 2 - Conventional reefer shipping This section opens with a review of recent developments in the conventional reefer sector (including those affecting reefer container transports), covering three years (2018-2020), including statistics and graphs of relevant time charter equivalents, as well as:

 Extensive conventional reefer ship overviews and statistics (existing IMO-registered fleet, orderbook, age profile, demolition, future development);  Structured profiles of the world’s 15 largest conventional reefer ship operators, including markets/trade lanes served and their operated fleet (whether owned or chartered).

Part 3 - Container reefer shipping This section provides insight into the main containerised reefer routes and services, invariably part of the South-North trade structure. Compared to previous versions of this publication, coverage has been expanded by even more trading areas. Furthermore, this section comprises:

 Extensive overviews and statistics on the composition and development of the container vessel fleet and orderbook, reefer TEU capacity, plugs/capacity ratios by size category;  Refrigerated container box fleet, size categories, production data, capacity by carrier;  Structured profiles of the world’s 10 largest reefer container carriers.

This publication uses the most recent trade statistics (up to 2019) on reefer commodities by country and area, supplemented with up-to-date port, vessel, box and carrier fleet statistics and gives a profound insight into the background, characteristics, developments and present status of the worldwide shipping market of perishables and the relevant players.

All information for the report has been collected, researched and processed in the third and fourth quarters of 2020. As sources often differ on the same topics, we have endeavoured to provide the reader with the most accurate estimates. Analyses are based on the best available professional databases and media, complete with data originating from carriers, operators, port authorities and a great many other industry players. 18 Dynamar (2020) Reefer Analysis

This has all been complemented with data from Dynamar’s own resources. This includes an unrivalled databank containing corporate, operational and financial information on some 16,000 different companies in the marine industry and DynaLiners, our daily, weekly and monthly digest, analysis and commentary on the industry’s comings and goings, and of course the knowledge, experience and reports of our R&A, Constant Monitoring, Consultancy, Marine Intelligence and Shipping Publications teams.

Alkmaar/the Netherlands December 2020 Frans Waals, Senior Shipping Consultant Jonathan Mummery, Consultant