Dive Brief:

• Drewry's most recent refrigerated shipping forecast reveals a bright spot for the shipping industry as the sector is expected to continue growing despite a general slowdown.
• The research firm estimates refrigerated cargo will reach 120 million tons by 2020, with an estimated average annual increase of 2.5%.
• However, the industry must still invest in making seaborne reefer shipping more profitable, specially given the time implications for perishables, which include pharmaceuticals, cut flowers as well as food and beverages. 

Dive Insight:

Maritime cargo transport is at its lowest rate in a decade, but the projected growth for the refrigerated transport industry provides hope for a more specialized role for carriers. Specialized reefer ships currently account for 5% of capacity, although this is already 23% over the demand for refrigerated cargo. 

The excess capacity may not a be red flag, as is the case for the rest of the industry, however. Some in the pharmaceuticals, for example, are switching to maritime transport over air transport, leading Drewry to declare it an "exciting market" for the industry.

However, if shipping lines seek to capture this market they must update their reefer technology to ensure greater tracking and tracing services, although the report notes this is unlikely as shipping lines are increasingly cash-strapped.