Source: Journal of Commerce

The US logistics market is facing growing challenges as demand for refrigerated containers (reefer) continues to rise, driven by surging imports from Asia and looming labor disruptions at key ports.

1. Current Market Landscape

Reefer container availability has become increasingly tight due to a significant rise in import demand:

• 10% increase in reefer imports: According to PIERS, US imports of reefer containers from Asia grew 10% year-over-year in October 2024.
• Seafood leads the surge: Data from the National Fisheries Association reveals a 30% spike in seafood imports from Asia in September compared to the same period in 2023.

Additionally, the tightening supply is also impacting intra-Asia routes, including shipments from China to Southeast Asia, as highlighted by logistics provider Dimerco Express Group.

2. Key Challenges for Logistics Operators

1. Limited Reefer Equipment at Key Ports:
   • Port of Houston: Significant shortages in reefer containers and associated generator equipment.
   • Philadelphia and Virginia Ports: Experiencing minor supply constraints that still affect operations.
2. Potential Labor Disruptions:
   • A possible port strike on January 15, 2025, could cause severe disruptions if the longshore union and port employers fail to reach a new labor agreement.
3. Logistics Adjustments:
   • Companies are exploring alternative shipping methods, including air freight, to mitigate risks and meet delivery schedules amid container shortages.

3. Outlook for 2024

Despite current challenges, industry experts project improvements in reefer container availability:

• Repositioning of Equipment: Reefer containers are expected to be redirected from Asia to the US to alleviate shortages.
• Global Growth in Reefer Demand: Forecasted to rise 10% in 2024, indicating strong opportunities for logistics operators.

4. Solutions for Reefer Shipping

At Seahorse Shipping, we understand the complexities of managing temperature-controlled logistics. Our tailored solutions include:

• Strategic Logistics Planning: Helping clients navigate market challenges with optimized shipping strategies.
• Reliable Equipment Access: Ensuring availability of reefer containers and supporting equipment for seamless supply chain operations.

📞 Contact us today to learn how we can support your business with effective reefer logistics solutions!

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