Germany's container shipping line Hamburg Sud will boost the largest refrigerated cargo capacity in the world after it takes delivery of six 9,600-TEU Cap San class ships, each fitted with 2,100 reefer plugs, according to Shipping Gazette.
The carrier is forecasting annual four to five per cent growth in the refrigerated cargo sector for the next few years, and is now investing in reefer equipment for the first time since 2010, with US$122 million earmarked for that purpose.
But freight rates remain unsatisfactory, with executive board member Peter Frederiksen conceding that attempts to increase prices for reefer cargo in 2013 were short-lived.
Reefer rates have only risen by five per cent since 2009, whereas bunker costs have soared 50 per cent over the same period, reported Lloyd's List.
What is delaying the recovery is investment in new ships that has kept supply growth ahead of demand, prompting Mr Frederiksen to warn of several more tough years for the container shipping industry ahead despite promising signs of improved cargo volumes.
"It is our opinion that the next couple of years will not become any easier," Mr Frederiksen told the CoolCargoes conference being held alongside the Trans-Pacific Maritime conference.
Fleet renewal makes good sense on a case-by-case basis, Mr Frederiksen acknowledged, with each line wanting to ensure they have modern fuel-efficient ships that can be operated competitively. But collectively they risk creating temporary over-capacity.
That in turn is likely to put even further pressure on carriers to reduce costs in the near-term. Those pressures could lead to more alliances being formed between shipping lines, or further merger and acquisition activity taking place, he said.
Mr Frederiksen also revealed that Hamburg Sud's Cap San class ships, which had been deployed in the Asia-east coast South America trades, will be switched to the Europe-east coast South America trades from next April to take full advantage of their reefer capacity.
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