Dynamar

Reefer Analysis

Market Structure,

Conventional,

Containers November 2012

Dynamar B.V.

Noorderkade 1G

1823 CJ ALKMAAR

The Netherlands

Phone: +31 72 514 7400

Fax: +31 72 515 1397

E-mail: info@dynamar.com

Web: www.dynamar.com

Dynamar (2012) Reefer Analysis Market Structure, Conventional, Containers

November 2012

Dynamar B.V.

Noorderkade 1G

1823 CJ ALKMAAR

Phone +31 72 514 74 00

Fax +31 72 515 13 97

info@dynamar.com

www.dynamar.com

Frans Waals Author

Senior Shipping Consultant

Dirk Visser Managing Editor

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

Table of Contents .............................................................................................................. 5

List of Tables ..................................................................................................................... 9

List of Figures .................................................................................................................. 13

1 Introduction ............................................................................................................. 15

2 History and background ........................................................................................... 20

2.1 The development of reefer shipping ................................................................................... 20

2.2 Deterioration ....................................................................................................................... 22

2.3 Reefer container technology ............................................................................................... 28

3 World perishable trades ........................................................................................... 32

3.1 Introduction and methodological issues ............................................................................. 32

3.2 Overall trade volumes ......................................................................................................... 34

3.3 Dairy .................................................................................................................................... 36

3.4 Fishery Products .................................................................................................................. 38

3.5 Fruit ..................................................................................................................................... 40

3.5.1 Bananas ....................................................................................................................................... 41 3.5.2 Citrus fruit .................................................................................................................................... 43 3.5.3 Deciduous fruit ............................................................................................................................. 45 3.5.4 Tropical fruit ................................................................................................................................ 47

3.6 Meat .................................................................................................................................... 49

3.7 Vegetables ........................................................................................................................... 51

4 Seaborne trade ........................................................................................................ 54

4.1 Introduction ......................................................................................................................... 54

4.2 Seaborne perishables volumes............................................................................................ 54

4.3 Conventional reefer ships versus container vessels ........................................................... 55

4.4 Geographical coverage ........................................................................................................ 56

4.4.1 Conventional reefer shipping ....................................................................................................... 56 4.4.2 South America .............................................................................................................................. 59 4.4.3 Central America and Caribbean ................................................................................................... 61 4.4.4 Sub-Saharan Africa and Morocco ................................................................................................ 63 4.4.5 Mediterranean ............................................................................................................................. 65 4.4.6 Australasia ................................................................................................................................... 66

5 Major reefer ports .................................................................................................... 68

5.1 Introduction ......................................................................................................................... 68

5.2 South America ..................................................................................................................... 68

5.2.1 Chile ............................................................................................................................................. 68 5.2.2 Peru .............................................................................................................................................. 70 5.2.3 Bolivia .......................................................................................................................................... 72 5.2.4 Ecuador ........................................................................................................................................ 72 5.2.5 Brazil ............................................................................................................................................ 74 5.2.6 Uruguay ....................................................................................................................................... 78 5.2.7 Paraguay ...................................................................................................................................... 79 5.2.8 Argentina ..................................................................................................................................... 80

5.3 Central America and Caribbean .......................................................................................... 82

5.3.1 Colombia ...................................................................................................................................... 82 5.3.2 Venezuela ..................................................................................................................................... 83 5.3.3 Guyana ......................................................................................................................................... 85 5.3.4 Suriname ...................................................................................................................................... 86

5.3.5 French Guiana .............................................................................................................................. 87 5.3.6 Panama ........................................................................................................................................ 88 5.3.7 Costa Rica .................................................................................................................................... 89 5.3.8 Nicaragua .................................................................................................................................... 91 5.3.9 Honduras...................................................................................................................................... 92 5.3.10 El Salvador ................................................................................................................................... 94 5.3.11 Guatemala ................................................................................................................................... 94 5.3.12 Belize ............................................................................................................................................ 96 5.3.13 Caribbean Islands ......................................................................................................................... 97

5.4 Sub-Saharan Africa and Morocco ........................................................................................ 99

5.4.1 Kenya ........................................................................................................................................... 99 5.4.2 Mozambique .............................................................................................................................. 100 5.4.3 Zimbabwe .................................................................................................................................. 102 5.4.4 Swaziland ................................................................................................................................... 102 5.4.5 South Africa ............................................................................................................................... 102 5.4.6 Namibia ..................................................................................................................................... 104 5.4.7 Cameroon .................................................................................................................................. 105 5.4.8 Ghana ........................................................................................................................................ 107 5.4.9 Côte d'Ivoire ............................................................................................................................... 108 5.4.10 Senegal ...................................................................................................................................... 109 5.4.11 Mauritania ................................................................................................................................. 111 5.4.12 Morocco ..................................................................................................................................... 111

5.5 Mediterranean .................................................................................................................. 113

5.5.1 Tunisia ........................................................................................................................................ 113 5.5.2 Algeria ........................................................................................................................................ 114 5.5.3 Libya ........................................................................................................................................... 115 5.5.4 Egypt .......................................................................................................................................... 115 5.5.5 Israel .......................................................................................................................................... 116 5.5.6 Lebanon ..................................................................................................................................... 118 5.5.7 Syria ........................................................................................................................................... 119 5.5.8 Turkey ........................................................................................................................................ 120

5.6 Australia and New Zealand ................................................................................................ 122

5.6.1 Australia ..................................................................................................................................... 122 5.6.2 New Zealand .............................................................................................................................. 124 5.6.3 Pacific Ocean Islands.................................................................................................................. 127

6 Development of the (conventional) reefer shipping market ..................................... 130

6.1 Introduction ....................................................................................................................... 130

6.2 The 2012 reefer market..................................................................................................... 131

6.3 The 2011 reefer market..................................................................................................... 134

6.4 The 2010 reefer market..................................................................................................... 137

7 The conventional reefer ship fleet............................................................................ 140

7.1 Fleet overview ................................................................................................................... 140

7.2 Delivery .............................................................................................................................. 141

7.3 Newbuilding ...................................................................................................................... 142

7.4 Demolition ......................................................................................................................... 142

7.5 Future fleet development ................................................................................................. 145

8 Major conventional reefer ship operators ................................................................ 146

8.1 Introduction ....................................................................................................................... 146

8.2 Africa Express Line ............................................................................................................. 147

8.3 Baltic Reefers ..................................................................................................................... 148

8.4 Cosiarma ............................................................................................................................ 149

8.5 Dole Ocean Cargo Express ................................................................................................. 151

8.6 Ecuadorian Line ................................................................................................................. 153

8.7 Fresh Carriers .................................................................................................................... 154

8.8 Frigoship Chartering .......................................................................................................... 155

8.9 Fyffes ................................................................................................................................. 156

8.10 Great White Fleet .............................................................................................................. 158

8.11 GreenSea Pool ................................................................................................................... 159

8.12 Maestro Reefer Shipping ................................................................................................... 160

8.13 Network Shipping .............................................................................................................. 161

8.14 NYKCool ............................................................................................................................. 162

8.15 Seatrade ............................................................................................................................ 164

8.16 Star Reefers ....................................................................................................................... 165

9 Container ship fleet ................................................................................................. 168

9.1 Container ship fleet developments ................................................................................... 168

9.2 Container ship fleet by operator ....................................................................................... 172

9.3 Reefer container box fleet ................................................................................................. 175

10 Reefer container trades ....................................................................................... 179

10.1 Introduction ....................................................................................................................... 179

10.2 West Coast South America ................................................................................................ 179

10.2.1 WCSA - Far East ......................................................................................................................... 179 10.2.2 WCSA/WCCA - United States ..................................................................................................... 181 10.2.3 WCSA - Europe ........................................................................................................................... 183

10.3 East Coast South America .................................................................................................. 184

10.3.1 ECSA - Far East ........................................................................................................................... 184 10.3.2 ECSA - US East Coast .................................................................................................................. 185 10.3.3 ECSA - Europe ............................................................................................................................. 186

10.4 Central America, North Coast of South America and the Caribbean ................................ 187

10.4.1 East Coast Central America/Caribbean - Far East ...................................................................... 187 10.4.2 East Coast Central America/Caribbean - US East Coast ............................................................. 188 10.4.3 East Coast Central America/Caribbean - Europe ....................................................................... 188

10.5 Southern Africa .................................................................................................................. 190

10.5.1 Southern Africa - Far East .......................................................................................................... 190 10.5.2 Southern Africa - United States .................................................................................................. 191 10.5.3 Southern Africa - Europe ............................................................................................................ 191

10.6 Australia/New Zealand ...................................................................................................... 192

10.6.1 Australia/New Zealand - Far East .............................................................................................. 192 10.6.2 Australia/New Zealand - US ....................................................................................................... 195 10.6.3 Australia/New Zealand - Europe ................................................................................................ 196

10.7 Summary ........................................................................................................................... 197

11 Container ship operators...................................................................................... 198

11.1 Introduction ....................................................................................................................... 198

11.2 China Shipping ................................................................................................................... 200

11.3 CMA CGM .......................................................................................................................... 202

11.4 Coscon ............................................................................................................................... 204

11.5 CSAV .................................................................................................................................. 206

11.6 Evergreen Line ................................................................................................................... 209

11.7 Hamburg Süd ..................................................................................................................... 211

11.8 Hanjin ................................................................................................................................ 213

11.9 Hapag-Lloyd ....................................................................................................................... 215

11.10 Hyundai ............................................................................................................................. 217

11.11 “K” Line .............................................................................................................................. 219

11.12 Maersk Line ....................................................................................................................... 221

11.13 MOL ................................................................................................................................... 224

11.14 MSC.................................................................................................................................... 226

11.15 NYK .................................................................................................................................... 228

11.16 PIL ...................................................................................................................................... 230

12 Refrigeration Container and Machinery Manufacturers........................................ 233

12.1 Introduction ....................................................................................................................... 233

12.2 Container box manufacturers ........................................................................................... 234

12.2.1 CIMC ........................................................................................................................................... 234 12.2.2 MCI ............................................................................................................................................. 235 12.2.3 Singamas.................................................................................................................................... 237

12.3 Reefer machinery manufacturers ..................................................................................... 238

12.3.1 Carrier Transicold ....................................................................................................................... 238 12.3.2 Daikin ......................................................................................................................................... 239 12.3.3 Star Cool ..................................................................................................................................... 240 12.3.4 Thermo King ............................................................................................................................... 241

13 Container leasing companies ............................................................................... 243

13.1 Introduction ....................................................................................................................... 243

13.2 Beacon ............................................................................................................................... 244

13.3 SeaCo ................................................................................................................................. 245

13.4 SeaCube ............................................................................................................................. 246

13.5 TAL ..................................................................................................................................... 247

13.6 Triton ................................................................................................................................. 248

Bibliography .................................................................................................................. 250

List of Tables

Table 1: Classification of storage temperature ..................................................................................................... 25 Table 2: Optimal transport temperatures for a selection of 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: Production figures for reefer container and refrigeration machinery units. ........................................... 29 Table 8: Overall worldwide perishables trade ....................................................................................................... 35 Table 9: Worldwide dairy trade ............................................................................................................................. 37 Table 10: Worldwide fishery products trade ......................................................................................................... 39 Table 11: Worldwide fruit trade ............................................................................................................................ 41 Table 12: Characteristic differences between plantains and bananas .................................................................. 42 Table 13: Main banana exporting countries ......................................................................................................... 43 Table 14: Citrus trade volumes .............................................................................................................................. 44 Table 15: Deciduous fruit trade volumes ............................................................................................................... 46 Table 16: Tropical fruit trade volumes .................................................................................................................. 47 Table 17: Shelf life of chilled meat ........................................................................................................................ 49 Table 18: Worldwide meat trade .......................................................................................................................... 50 Table 19: Worldwide vegetable trade ................................................................................................................... 52 Table 20: Seaborne perishables trade by commodity ........................................................................................... 55 Table 21: Conventional reefer ship calls ................................................................................................................ 58 Table 22: Perishables exports (tons) from selected countries in South America, 2011 ......................................... 59 Table 23: Summary of reefer ports in South America ........................................................................................... 61 Table 24: Perishables exports (tons) from selected countries in Central America and the Caribbean, 2011 ........ 62 Table 25: Summary of reefer ports in Central America, the Caribbean and the north coast of South America .... 63 Table 26: Perishables exports (tons) from selected countries in Sub-Saharan Africa and Morocco, 2011 ........... 64 Table 27: Summary of reefer ports in Sub-Saharan Africa and Morocco .............................................................. 65 Table 28: Perishables exports (tons) from selected countries in the Mediterranean, 2011 .................................. 65 Table 29: Summary of reefer ports in the Mediterranean .................................................................................... 66 Table 30: Perishables exports (tons) from Australasia, 2011 ................................................................................ 66 Table 31: Summary of reefer ports in Australia and New Zealand ....................................................................... 67 Table 32: Chilean perishable exports (tons) .......................................................................................................... 68 Table 33: Port activity in Chile ............................................................................................................................... 69 Table 34: Peruvian perishable exports (tons) ........................................................................................................ 71 Table 35: Port activity in Peru ............................................................................................................................... 71 Table 36: Bolivian perishable exports (tons) ......................................................................................................... 72 Table 37: Ecuadorian perishable exports (tons) .................................................................................................... 73 Table 38: Port activity in Ecuador ......................................................................................................................... 73 Table 39: Brazilian perishable exports (tons) ........................................................................................................ 75 Table 40: Port activity in Brazil .............................................................................................................................. 75 Table 41: Brazil reefer box exports (TEU) .............................................................................................................. 76 Table 42: Uruguayan perishable exports (tons) .................................................................................................... 78 Table 43: Port activity in Uruguay ......................................................................................................................... 79 Table 44: Uruguayan perishable exports (tons) .................................................................................................... 80 Table 45: Argentinean perishable exports (tons) .................................................................................................. 80 Table 46: Port activity in Argentina ....................................................................................................................... 81 Table 47: Colombian perishable exports (tons) ..................................................................................................... 82 Table 48: Port activity in Colombia ....................................................................................................................... 83 Table 49: Venezuelan perishable exports (tons).................................................................................................... 84 Table 50: Port activity in Venezuela ...................................................................................................................... 84 Table 51: Guyana’s perishable exports (tons) ....................................................................................................... 85 Table 52: Suriname perishable exports (tons) ....................................................................................................... 86 Table 53: Port activity in Suriname ....................................................................................................................... 86 Table 54: Port activity in French Guiana ............................................................................................................... 87 Table 55: Panamanian perishable exports (tons) .................................................................................................. 88 Table 56: Port activity in Panama ......................................................................................................................... 88 Table 57: Costa Rican perishable exports (tons) ................................................................................................... 90 Table 58: Port activity in Costa Rica ...................................................................................................................... 90 Table 59: Nicaraguan perishable exports (tons) ................................................................................................... 91 Table 60: Port activity in Nicaragua ...................................................................................................................... 91

Table 61: Honduran perishable exports (tons) ...................................................................................................... 92 Table 62: Port activity in Honduras ....................................................................................................................... 93 Table 63: El Salvador’s perishable exports (tons) .................................................................................................. 94 Table 64: Port activity in El Salvador ..................................................................................................................... 94 Table 65: Guatemalan perishable exports (tons) .................................................................................................. 95 Table 66: Port activity in Guatemala ..................................................................................................................... 95 Table 67: Belizean perishable exports (tons) ......................................................................................................... 96 Table 68: Port activity in Belize ............................................................................................................................. 97 Table 69: Banana exports from Caribbean Islands (tons) ..................................................................................... 97 Table 70: Port activity of Caribbean Islands .......................................................................................................... 98 Table 71: Kenyan perishable exports (tons) .......................................................................................................... 99 Table 72: Port activity in Kenya ............................................................................................................................. 99 Table 73: Mozambique perishable exports (tons) ............................................................................................... 100 Table 74: Port activity in Mozambique................................................................................................................ 101 Table 75: Zimbabwean perishable exports (tons) ............................................................................................... 102 Table 76: South African perishable exports (tons) .............................................................................................. 102 Table 77: Port activity in South Africa ................................................................................................................. 103 Table 78: Namibian perishable exports (tons) .................................................................................................... 104 Table 79: Port activity in Namibia ....................................................................................................................... 105 Table 80: Cameroons perishable exports (tons) .................................................................................................. 106 Table 81: Port activity in Cameroon .................................................................................................................... 106 Table 82: Ghanaian perishable exports (tons) .................................................................................................... 107 Table 83: Port activity in Ghana .......................................................................................................................... 107 Table 84: Côte d’Ivoire’s perishable exports (tons) ............................................................................................. 108 Table 85: Port activity in Cote d’Ivoire port ......................................................................................................... 109 Table 86: Senegalese perishable exports (tons) .................................................................................................. 110 Table 87: Port activity in Senegal ........................................................................................................................ 110 Table 88: Mauritanian perishable exports (tons) ................................................................................................ 111 Table 89: Port activity of ports in Mauretania .................................................................................................... 111 Table 90: Moroccan perishable exports (tons) .................................................................................................... 112 Table 91: Port activity in Morocco ...................................................................................................................... 112 Table 92: Tunisian perishable exports (tons) ....................................................................................................... 113 Table 93: Port activity in Tunisia ......................................................................................................................... 114 Table 94: Algerian perishable exports (tons) ....................................................................................................... 114 Table 95: Egyptian perishable exports (tons) ...................................................................................................... 115 Table 96: Port activity in Egypt ........................................................................................................................... 115 Table 97: Israeli perishable exports (tons) .......................................................................................................... 116 Table 98: Port activity in Israel ............................................................................................................................ 117 Table 99: Lebanese perishable exports (tons) ..................................................................................................... 118 Table 100: Port activity in Lebanon ..................................................................................................................... 119 Table 101: Syrian perishable exports (tons) ........................................................................................................ 119 Table 102: Port activity in Syria ........................................................................................................................... 120 Table 103: Turkish perishable exports (tons) ...................................................................................................... 120 Table 104: Port activity in Turkey ........................................................................................................................ 121 Table 105: Australian perishable exports (tons) .................................................................................................. 122 Table 106: Port activity in Australia .................................................................................................................... 122 Table 107: New Zealand perishable exports (tons) ............................................................................................. 124 Table 108: Port activity in New Zealand .............................................................................................................. 126 Table 109: Fish exports from Pacific Ocean Islands (tons) .................................................................................. 127 Table 110: Port activity on Pacific Ocean Islands ................................................................................................ 127 Table 111: Annual average time charter equivalent (USD per cu.ft./30 days), for two ships types .................... 131 Table 112: Conventional reefer ship capacity by size class, 1 July 2012 ............................................................. 140 Table 113: TEU capacity of conventional reefer ships by size class, 1 July 2012 ................................................. 140 Table 114: Age by size class ................................................................................................................................ 141 Table 115: Demolition 2010-2012 ....................................................................................................................... 144 Table 116: Conventional reefer ship operator ranking........................................................................................ 146 Table 117: Conventional reefer ship fleet of Africa Express Line ......................................................................... 148 Table 118: Conventional reefer ship fleet of Baltic Reefers ................................................................................. 149 Table 119: Conventional reefer ship fleet of Cosiarma ....................................................................................... 150 Table 120: Conventional reefer ship fleet of Dole Ocean Cargo Express ............................................................. 152 Table 121: Conventional reefer ship fleet of Ecuadorian Line ............................................................................. 154 Table 122: Conventional reefer ship fleet of Ecuadorian Line ............................................................................. 155 Table 123: Conventional reefer ship fleet of Frigoship ........................................................................................ 156

Table 124: Conventional reefer ship fleet of Fyffes ............................................................................................. 157 Table 125: Conventional reefer ship fleet of Great White Fleet .......................................................................... 159 Table 126: Conventional reefer ship fleet operated by the GreenSea Pool ......................................................... 160 Table 127: Conventional reefer ship fleet of Maestro Reefer Shipping ............................................................... 161 Table 128: Conventional reefer ship fleet of Del Monte ...................................................................................... 162 Table 129: Conventional reefer ship fleet of NYKCool ......................................................................................... 163 Table 130: Conventional reefer ship fleet of Seatrade ........................................................................................ 165 Table 131: Conventional reefer ship fleet of Star Reefers ................................................................................... 166 Table 132: Cellular container ship fleet by size category (as at 1 July 2011) ...................................................... 168 Table 133: Scrapping of container ships ............................................................................................................. 171 Table 134: Top-25 container operators’ fleet and orderbook (as at 1 July 2012) ............................................... 173 Table 135: An overview of reefer-heavy container ships by carrier .................................................................... 174 Table 136: Reefer container production, by year and type ................................................................................. 176 Table 137: Box fleet operated by Top-15 container ship operators (at the end of 2011) ................................... 178 Table 138: Services between the West Coast South and Central America and the Far East ............................... 180 Table 139: Carriers involved in the West Coast South America - Far East trade ................................................. 181 Table 140: Services between the West Coast Central America and the US West Coast...................................... 181 Table 141: Carriers involved in the West Coast South and Central America - US West Coast trade ................... 182 Table 142: Services between the West Coast of South America and the US East Coast ..................................... 182 Table 143: Carriers involved in the West Coast South America - US East Coast trade ........................................ 183 Table 144: Services between the West Coast of South America and Europe ...................................................... 183 Table 145: Carriers involved in the West Coast South America - Europe trade ................................................... 184 Table 146: Services between the East Coast South America and the Far East .................................................... 184 Table 147: Carriers involved in the East Coast South America - Far East trade .................................................. 185 Table 148: Services between the East Coast of South America and the US East Coast ....................................... 185 Table 149: Carriers involved in the East Coast South America - US East Coast trade ......................................... 186 Table 150: Services between the East Coast South America and Europe ............................................................ 186 Table 151: Carriers involved in the East Coast South America - Europe trade .................................................... 187 Table 152: Services between the East Coast Central America/Caribbean and the Far East ............................... 187 Table 153: Carriers involved in the East Coast Central America/Caribbean - Far East trade .............................. 187 Table 154: Carriers involved in the East Coast Central America/Caribbean - Europe trade ................................ 188 Table 155: Services between the East Coast Central America/Caribbean and Europe ....................................... 189 Table 156: Services between Southern Africa and the Far East .......................................................................... 190 Table 157: Carriers involved in the Southern Africa - Far East trade................................................................... 191 Table 158: Services between Southern Africa and the US East Coast ................................................................. 191 Table 159: Carriers involved in the Southern Africa - US East Coast trade.......................................................... 191 Table 160: Services between Southern Africa and Europe .................................................................................. 192 Table 161: Carriers involved in the Southern Africa - Europe trade .................................................................... 192 Table 162: Services between Australia/New Zealand and North East Asia ........................................................ 193 Table 163: Carriers involved in the Australia/New Zealand - North East Asia trade ........................................... 193 Table 164: Services between Australia/New Zealand and South East Asia......................................................... 194 Table 165: Carriers involved in the Australia/New Zealand-South East Asia trade............................................. 195 Table 166: Services between Australia/New Zealand and the United States ..................................................... 195 Table 167: Carriers involved in the Australia/New Zealand-United States trade ................................................ 196 Table 168: Services between Australia/New Zealand and Europe ...................................................................... 196 Table 169: Carriers involved in the Australia/New Zealand-Europe trade .......................................................... 196 Table 170: Overview of services by trade lane .................................................................................................... 197 Table 171: Carrier’s reefer capacity employed on North-South trades ............................................................... 199 Table 172: Trade lanes covered by container ship operators .............................................................................. 199 Table 173: Trade lanes covered by China Shipping ............................................................................................. 201 Table 174: Liner fleet composition of China Shipping, at 1 July 2012 ................................................................. 201 Table 175: Trade lanes covered by CMA CGM .................................................................................................... 203 Table 176: Liner fleet composition of CMA CGM, at 1 July 2012 ........................................................................ 204 Table 177: Trade lanes covered by Coscon .......................................................................................................... 205 Table 178: Liner fleet composition of Coscon, at 1 July 2012 .............................................................................. 206 Table 179: Trade lanes covered by CSAV ............................................................................................................. 208 Table 180: Liner fleet composition of CSAV, at 1 July 2012 ................................................................................. 208 Table 181: Trade lanes covered by Evergreen ..................................................................................................... 210 Table 182: Liner fleet composition of Evergreen, at 1 July 2012 ......................................................................... 210 Table 183: Trade lanes covered by Hamburg Süd ............................................................................................... 212 Table 184: Liner fleet composition of Hamburg Süd, at 1 July 2012 ................................................................... 213 Table 185: Trade lanes covered by Hanjin........................................................................................................... 214 Table 186: Liner fleet composition of Hanjin, at 1 July 2012 ............................................................................... 215

Table 187: Trade lanes covered by Hapag-Lloyd ................................................................................................. 216 Table 188: Liner fleet composition of Hapag-Lloyd, at 1 July 2012 ..................................................................... 217 Table 189: Trade lanes covered by Hyundai ........................................................................................................ 218 Table 190: Liner fleet composition of Hyundai, at 1 July 2012 ............................................................................ 219 Table 191: Trade lanes covered by “K” Line ........................................................................................................ 220 Table 192: Liner fleet composition of “K” Line, at 1 July 2012 ............................................................................ 220 Table 193: Trade lanes covered by Maersk Line.................................................................................................. 223 Table 194: Liner fleet composition of Maersk Line, at 1 July 2012 ...................................................................... 223 Table 195: Trade lanes covered by MOL ............................................................................................................. 225 Table 196: Liner fleet composition of MOL, at 1 July 2012 ................................................................................. 225 Table 197: Trade lanes covered by MSC .............................................................................................................. 227 Table 198: Liner fleet composition of MSC, at 1 July 2012 .................................................................................. 228 Table 199: Trade lanes covered by NYK .............................................................................................................. 229 Table 200: Liner fleet composition of NYK, at 1 July 2012................................................................................... 230 Table 201: Trade lanes covered by PIL ................................................................................................................ 231 Table 202: Liner fleet composition of PIL, at 1 July 2012 .................................................................................... 232 Table 203: Reefer container production, by year and type ................................................................................. 233 Table 204: Reefer container production capacity and annual production by manufacturer .............................. 233 Table 205: Four reefer machinery manufacturers’ production development, 2007-11 ...................................... 233 Table 206: Container fleet owned by Top-10 reefer box leasing companies (at the end of each year) .............. 244

List of Figures

Figure 1: Integral reefer container ........................................................................................................................ 22 Figure 2: Decay ...................................................................................................................................................... 23 Figure 3: Stowage of pallets .................................................................................................................................. 24 Figure 4: Stuffing of containers ............................................................................................................................. 24 Figure 5: Main dairy exporting countries .............................................................................................................. 38 Figure 6: Fish exporting countries ......................................................................................................................... 40 Figure 7: Crustaceans and molluscs exporting countries ...................................................................................... 40 Figure 8: Banana exporting countries ................................................................................................................... 43 Figure 9: Citrus fruit exporting countries .............................................................................................................. 45 Figure 10: Deciduous fruit exporting countries ..................................................................................................... 47 Figure 11: Tropical fruit exporting countries ......................................................................................................... 49 Figure 12: Main meat exporting countries ............................................................................................................ 51 Figure 13: Vegetables exporting countries ............................................................................................................ 53 Figure 14: Seaborne perishables trade .................................................................................................................. 54 Figure 15: The share of conventional shipping in the reefer segment .................................................................. 55 Figure 16: Conventional reefer ship destinations .................................................................................................. 57 Figure 17: Map of Chile ......................................................................................................................................... 70 Figure 18: Map of Peru .......................................................................................................................................... 72 Figure 19: Map of Ecuador .................................................................................................................................... 74 Figure 20: Map of Brazil ........................................................................................................................................ 78 Figure 21: Map of Uruguay ................................................................................................................................... 79 Figure 22: Map of Argentina ................................................................................................................................. 82 Figure 23: Map of Colombia .................................................................................................................................. 83 Figure 24: Map of Colombia .................................................................................................................................. 85 Figure 25: Map of Guyana..................................................................................................................................... 86 Figure 26: Map of Suriname .................................................................................................................................. 87 Figure 27: Map of French Guiana .......................................................................................................................... 87 Figure 28: Map of Panama .................................................................................................................................... 89 Figure 29: Map of Costa Rica ................................................................................................................................ 91 Figure 30: Map of Nicaragua ................................................................................................................................ 92 Figure 31: Map of Honduras ................................................................................................................................. 93 Figure 32: Map of El Salvador ............................................................................................................................... 94 Figure 33: Map of Guatemala ............................................................................................................................... 96 Figure 34: Map of Belize ........................................................................................................................................ 97 Figure 35: Map of Kenya ..................................................................................................................................... 100 Figure 36: Map of Mozambique .......................................................................................................................... 101 Figure 37: Map of South Africa ........................................................................................................................... 104 Figure 38: Map of Namibia ................................................................................................................................. 105 Figure 39: Map of Cameroon .............................................................................................................................. 106 Figure 40: Map of Ghana .................................................................................................................................... 108 Figure 41: Map of Côte d'Ivoire ........................................................................................................................... 109 Figure 42: Map of Senegal .................................................................................................................................. 110 Figure 43: Map of Mauretania ............................................................................................................................ 111 Figure 44: Map of Morocco ................................................................................................................................. 113 Figure 45: Map of Tunisia.................................................................................................................................... 114 Figure 46: Map of Egypt ...................................................................................................................................... 116 Figure 47: Map of Israel ...................................................................................................................................... 118 Figure 48: Map of Lebanon ................................................................................................................................. 119 Figure 49: Map of Syria ....................................................................................................................................... 120 Figure 50: Map of Turkey .................................................................................................................................... 121 Figure 51: Map of Australia ................................................................................................................................ 124 Figure 52: Map of New Zealand .......................................................................................................................... 125 Figure 53: Time Charter Equivalent for reefer ships (2005-2012) ....................................................................... 131 Figure 54: Time Charter Equivalent for reefer ships (2012) ................................................................................ 134 Figure 55: Time Charter Equivalent for reefer ships (2011) ................................................................................ 137 Figure 56: Time Charter Equivalent for reefer ships (2010) ................................................................................ 139 Figure 57: Number of ships delivered versus number of ships currently in service, by year of build .................. 141 Figure 58: Total capacity of ships delivered, by year of build.............................................................................. 143 Figure 59: Average capacity of ships delivered, by year of build ........................................................................ 143 Figure 60: Number of ships demolished, by year of demolition .......................................................................... 144

Figure 61: Conventional reefer fleet development .............................................................................................. 145 Figure 62: Number of cellular container ships currently in operation, by year-of-built ...................................... 169 Figure 63: Average size of container ships in operation, by year of build and order book (*) ............................ 170 Figure 64: Capacity of the container ship fleet, by year of build and order book (*) .......................................... 170 Figure 65: Average number of reefer plugs per ship, by year of build ................................................................ 171 Figure 66: Relation between the number of reefer plugs and ship size, by year of build .................................... 172 Figure 67: (Projected) development of the cellular container ship fleet ............................................................. 173 Figure 68: Reefer container fleet (TEU), by year ................................................................................................. 175 Figure 69: Reefer container fleet versus total number of reefer plugs of the fleet (TEU/Plug), by year ............. 176 Figure 70: Actual reefer carrying capacity .......................................................................................................... 177 Figure 71: Actual reefer carrying capacity: container versus conventional ........................................................ 177 Figure 72: Star Cool refrigeration machinery units a) integrated, b) integral/picture frame ............................. 241

1 Introduction

The cultivation of vegetables and fruit, the catching of fish, and the farming and production of meat

products of all kinds is the bread and butter, if not one of the necessities of people across the world.

The seaborne transport of farmed, caught and processed produce in specialised conventional

refrigerated ships and reefer boxes covers only a small percentage of all those human efforts. Yet,

worldwide perishable trade now covers over 90 million tons but that again makes it a modest

shipping segment, accounting for barely 1% of the worldwide seaborne trade of all kinds or 2.6% if

considering all dry cargo (excluding bulk) only.

At the same time, “reefer shipping” represents, beyond doubt, one of the liveliest shipping trades.

Why? More than any other cargo (perhaps except for specific project cargoes), fresh products

require constant and very special(ised) care involving numerous individuals, organisations and the

most advanced techniques, at sea and on shore to ensure that the product arrives “fresh” on the

local market stall or the supermarket shelf.

If you, at least your mind, want a virtual trip around the world then read the fruit and vegetables

labels in your local supermarket! Dynamar did so upon publication of this report and saw, amongst

others:

- Apples from Argentina

- Aubergines and tomatoes from Morocco

- Bananas from Colombia

- Blueberries from Chile

- Grapes from India

- Kaki fruit from Israel

- Kiwis from New Zealand

- Mangoes from Brazil

- Pineapples from Costa Rica

- Prunes from Israel

Go for another label reading session to the same supermarket in a few months time and you are

likely to see the same fruit and vegetables from different far away origins. What is more, all the

“fresh” fruit, as an example, was looking and feeling as if it was picked an hour ago from the tree in

the supermarket’s own orchard next door. Is there any better demonstration of the capability of the

companies operating (deep) seaborne reefer services?

Our third consecutive, annual specialist report

Dynamar (2012) REEFER Analysis - Market Structure, Conventional, Containers

comes at an interesting point of time in the “battle” between the conventional reefer sector and the

refrigerated container, which has continued unabated over the years.

The reefer box operators have no doubt been successful in obtaining a higher share of the business

every year, especially since also started, in 2007, dedicated and in part seasonal “reefer-heavy”

container services between specific supply and demand areas. Undoubtedly they have also offered

(sometimes much) lower rates than the conventional operators had always done or were able to.

Therewith they managed to remove the appetite to invest in this specialist conventional sector with

the result of a shrinking fleet. In the July 2011/2012 period, 94 conventional reefer ships (including

dedicated fish carriers) have been demolished of a total capacity of nearly 35.8 million cubic feet

(including the lost on-deck container space). Scrapping has only accelerated during the 2nd

half of

2012.

In the same period, the container segment increased by:

- 26 ships (after scrapping)

- 99,600 reefer plugs (theoretically capable of accommodating more than 199,000 reefer TEU)

- by more than 230,000 TEU of (predominantly 40’ high cube) reefer containers.

As is well known, it is the size of the reefer box fleet that determines the actual reefer carrying

capacity of the container segment. Plugs are obviously a requirement, but there is an overall

substantial overhang of them, amongst others to ensure a flexible stowage configuration.

At the present pace and age of scrapping, and assuming no substantial new orders, the number of

conventional reefer ships will, by 2020, have reduced to only some 370 units, less than 60% of the

present complement …

So, the end of the conventional reefer segment is in sight??? That remains to be seen, as the

segment appears to have been caught by a refreshing optimism!

- Seatrade, the world’s largest operator controlling a capacity share of over 20%, expects the

conventional reefer trade to be close to reaching a new equilibrium in terms of supply and

demand, predicting healthy 2013 peak season rates helped by this year’s abundant scrapping

- News has emerged on (most probably) Star Reefers Pool placing an order for three around

300,000 cu.ft. conventional reefer ships with considerably container space

- This new found optimism may have been fed by the individual announcements of Maersk

Line, CMA CGM and MSC that they will increase their (40ft) reefer box rates by USD 1,500

across the board, effective 1 January - other container carriers will no doubt follow suit as

they adhere to the argument that the current costs and required investments are not

covered by freight revenues …

The general opinion among refrigerated produce shippers seems to be that the container operators

think that they can cash in now after having successfully marginalised the conventional sector …

Read all about it in the next annual editions of the Dynamar Reefer Analysis … as with this one, their

reading will always be worth your small investment in a continuous insight in the reefer sector …

This Dynamar (2012) Reefer Analysis - Market Structure, Conventional, Containers builds upon the

analysis of the previous year, but goes further. It offers in-depth profiles on manufacturers of reefer

boxes and reefer machinery equipment as well as of the main leasing companies and their

refrigerated involvement. Again, this publication comprises three parts: two separate sections on the

different conventional and container reefer trades, these being based on an extensive write up of 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 overviews, statistics and concise descriptions of:

• The world perishable trades: volumes by main produce and export regions - transport

modes and characteristics - temperature settings - modern techniques

• 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, covering

three seasons (2012/2011/2010), 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

The introduction clarifies the main containerized reefer routes, invariably part of the South-North

structure. Furthermore, this section provides:

• Extensive overviews and statistics of the composition and development of the container

fleet and orderbook, reefer TEU capacity, plugs/capacity ratios by size category, total box

fleet and refrigerated container fleet (share) by main carrier

• The reefer-heavy containership phenomenon

• Inventory of container shipping services on the most relevant (North/South) reefer

routes

• Refrigerated container box fleet, size categories, production data, capacity by carrier

• Structured profiles of the world’s 15 largest reefer container carriers

• Profiles of box and refrigeration machinery manufacturers

• Descriptions of the main box leasing companies in the reefer segment.

This publication uses the most recent (up to 2011) trade statistics on reefer commodity data 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, goings 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 quarter of

2012. As sources often differ on the same topics, we have endeavoured to provide the most accurate

estimates.

Analyses have been based on the best available professional databases and media and completed

with data originating from carriers, operators, port authorities and a great many of other industry

players.

This has all, obviously, been complemented from Dynamar’s own resources: an unrivalled databank

containing corporate, operational and financial information on over 14,000 different companies in

the marine industry - DynaLiners, our weekly digest, analysis and commentary of the industry’s

comings and goings - the knowledge, experience and reports of our R&A, Constant Monitoring,

Consultancy, Marine Intelligence and Shipping Publications teams.

Alkmaar/the Netherlands

November 2012

Frans Waals, author

Senior Shipping Consultant

Dirk Visser

Managing Editor