Dive Brief:
- Hapag-LLoyd is investing in 5,750 refrigerated containers (reefers) to strengthen its market position in cold chain transport, the company announced in a press release this week.
- One thousand units will include "controlled atmosphere" technology, designed to transport fruits and vegetables for longer periods of time. The company will gradually integrate the new containers into their fleet.
- The new order will arrive in October and is part of a string of cold chain investments by the shipping line. Hapag-Lloyd also ordered five 10,500 TEU vessels last April, which are currently being built in South Korea and will begin sailing by the end of this year. Each of the new ships will be able to carry more than 2,100 reefer units.
Dive Insight:
Hapag-Lloyd may be reading the tea leaves about the growth of reefer shipment demands.
A recent Drewry report suggests refrigerated cargo shipments are on the rise and will grow at an annual rate of 2.5% until 2020. Although maritime freight transport may be in a slump and over-capacity plagues even the reefer subsector (reefer capacity exceeds demand by 23%), cold chain clients appear to be favoring maritime shipping given proper technology.
Pharmaceutical companies, for example, have special needs that require highly sensitive products for treatments of rare and exotic diseases. Very often these medications have an active ingredients that have short shelf lives and stringent temperature requirements. However, the active pharmaceutical ingredients are often not produced in the same area in which they are processed.
Hapag-LLoyd appears to check all the boxes with the new announcement: the controlled atmosphere technology will allow the shipping line to offer reefer transport across larger, more convenient distances. In addition, specialized vessels will allow the company to dedicate transport services to reefer units, increasing scale and therefore decreasing the price of transport.
