European shipowners are dictating the terms of the reefer container market [REPORT]

The global market for maritime transport in reefer containers will grow to over USD 20 billion by 2035. EU operators are the main beneficiaries of this dynamically growing global market. European shipowners are therefore increasing the transport capacity of their vessels by adding space on board, the number of connections for reefer containers, and, of course, the capacity of power supply equipment. Container terminals are also continuing to increase their reefer container turnover capacity.

The growing popularity of maritime transport in reefer containers is driven by the growing demand in leading markets for perishable goods or goods requiring special conditions. Among these, food is the leading commodity, as are pharmaceuticals and their components and systems requiring transport in stable conditions. The market is growing so rapidly that many analytical firms are making extremely optimistic forecasts. According to ZION Market Research analysts, the global reefer container market was valued at approximately USD 9.33 billion in 2023. It is projected to grow to approximately USD 20.09 billion by 2032, at a compound annual growth rate (CAGR) of approximately 8.90% during 2024–2032.

Reefer Container Market. Source: ZION Market Research

Market growth is driven by growing global trade in perishable goods, rising consumer demand for fresh produce, and stringent regulations regarding the transportation of pharmaceutical products. The United States, the EU, and China dominate the market. The Asia-Pacific region shows particularly high growth potential. The exponential growth in international trade in temperature-sensitive goods is clearly noticeable and is the main driver of the reefer container market.

Refrigerated Tons

“With over 740 million metric tons of perishable food expected to be transported in 2023, maintaining product integrity during transport has become crucial,” emphasize the authors of the report “Reefer Container Fleet Market Growth Analysis, Dynamics, Key Players and Innovations, Outlook and Forecast 2025-2032.”

According to them, “The expansion of the pharmaceutical sector is further driving this demand, with cold chain logistics becoming mandatory for 90% of vaccine and sensitive biologic drug shipments. This growth directly translates into the growing popularity of advanced refrigerated containers, capable of maintaining a precise temperature range from -30°C to +30°C.”

Key players have emerged in the maritime transport of refrigerated cargo in containers. These include operators such as MSC, Maersk Line, and CMA CGM. They hold a significant market share thanks to investments in new transport technologies, advanced fleet management solutions, and strategic partnerships. This position is strengthened by the introduction of their own terminals and logistics operators into the refrigerated cargo transport chains.

Alphaliner’s annual ranking of the 10 largest refrigerated capacity carriers shows that the “refrigerated ranking” generally reflects the total fleet size of individual liner operators. The only exception is Zim Shipping, which is the 10th largest carrier in the world but still ranks 8th in terms of the number of reefer containers, ahead of operators HMM and Yang Ming.

Electrical Connections for Reefer Containers on Ships Source: Alphaliner

Reefer Containers on Deck

MSC Cargo is currently the world’s largest ocean carrier. It has approximately 651,000 spaces for reefer containers on its ships. Theoretically, if all of these were filled with 40-foot reefer containers, the shipping line could utilize one-fifth of its total ship capacity for temperature-controlled cargo, according to the Global Maritime Hub.

MSC secured an 11.7% year-on-year increase in reefer containers on board. This is the result of an 11.6% increase in fleet capacity over the past twelve months. Most container fleet operators are increasing cargo space, as well as increasing connections and spaces to increase capacity for reefer cargo.

However, CMA CGM, for example, increased its reefer capacity by 10.4%, while the total fleet growth was 6.7%, according to Alphaliner data. By increasing its capacity, the French carrier could theoretically utilize up to 23.3% of its nominal cargo space for reefer container transport. A small group of large liner operators demonstrates similar potential. These include Maersk (23.2%), ZIM (22.7%), and Hapag Lloyd AG (21.0%).

Alphaliner’s annual report shows that Asian carrier fleets have lower shares of reefer space. For example, COSCO SHIPPING Group vessels accommodate approximately 18.5% of reefer containers, while Ocean Network’s fleet accounts for approximately 16.2%.

Smart Containers

The demand for containers and refrigerated cargo transportation has also fueled technological advancements, including satellite tracking technologies, IT, and AI. Modern refrigerated containers are now equipped with tracking systems using the Internet of Things (IoT). Containers are equipped with automated ventilation systems. Recent innovations include dual temperature zones, enabling the simultaneous transport of different products.

Intel Market Research analysts predict that the global smart container market will grow at a CAGR of 15.8% through 2030. Leading manufacturers are integrating predictive maintenance features that reduce downtime by 40%, increasing fleet operational efficiency. These technological advancements significantly reduce the total cost of ownership (CCO) while improving reliability.

The rapid growth of refrigerated maritime cargo transportation is driven by the rapid expansion of this market into developing countries. Large-scale investments in cold chain logistics are being observed in ports and their hinterlands. The Asia-Pacific region leads the way with 22% year-on-year growth in demand for reefer containers. Governments are supporting this market growth. China’s National Cold Chain Logistics Development Plan is a leading program in Asia.

Reefer containers plugs in seaports. Source: Port Economics, Management and Policy, Theo Notteboom, Athanasios Pallis, Jean-Paul Rodrigue, Routledge 2022.

Investments in Ports and Logistics

The Chinese government has allocated $47 billion to the development of reefer container logistics, primarily for infrastructure expansion. The Chinese reefer logistics market is estimated to be worth $94.46 billion in 2025 and $152.62 billion by 2030, with a compound annual growth rate (CAGR) of 10.70% over the forecast period (2025-2030), according to Mordor Intelligence analysts.

The growing middle-class population is driving a 58% increase in demand for imported fresh produce in regions such as Southeast Asia and Latin America. This infrastructure expansion creates significant opportunities for fleet operators to establish regional distribution centers and expand service networks, Intel Market Research emphasizes.

The growth of global container transport chains is placing increasing demands on seaports. This is due to the increasing demand for energy to power reefer containers and transport systems. High operating costs and energy consumption require the optimization of logistics chains. “A global inventory of container terminals revealed that the total number of reefer container connections exceeds 475,000,” reports Jean-Paul Rodrigue, Texas A&M University – Galveston.

Reefer Container Markets. Source: PS Market Research

Leading transshipment hubs such as Singapore, Dubai, Busan, and Algeciras are clearly visible worldwide. Reefer export platforms, which are associated with the fruit and vegetable trade, clearly stand out on the global logistics map for refrigerated cargo. Jean-Paul Rodrigue highlighted the hubs of South Africa, Brazil, Ecuador, Chile, and Costa Rica.

Operating costs for reefer containers are still three to four times higher than for traditional containers. Energy demand for refrigeration is estimated at 35-45% of total operating costs. The operating costs of reefer containers are also influenced by the price of bunker fuels used by vessels with reefer slots. Fuel costs are estimated to account for 60-70% of the voyage costs of reefer cargo.

Maritime transport costs and costs incurred at ports therefore significantly impact the final price of medicine, meat, or bananas delivered to the end consumer. Recent studies show that 62% of ports in developing countries cannot handle the simultaneous connection of more than 150 refrigerated containers. This creates bottlenecks in these ports. Ships carrying refrigerated cargoes sometimes have to endure longer laytimes in ports inadequately equipped for refrigerated container connections. These economic and related factors make refrigerated transport a continuing logistical challenge.