The market for marine transportation has grown significantly as a result of the rising demand for perishable goods. The demand for fresh food items such as meat, fish, shellfish, dairy, frozen desserts, vegetables, fruits, and bakery and confectionery products is rising as the population grows. This has created a demand for these food goods to be transported effectively, which is being met by the maritime transportation business. The convenience of sea transportation versus other forms of transportation is another element fueling the market's expansion. The risk involved in carrying perishable commodities over large distances is eliminated by sea travel, making it the most economical and safest means of transportation. The expansion of ports throughout the world has also improved the handling and storage of perishable commodities using refrigeration, which is further boosting the market's expansion.
The market for perishable commodities by sea is necessary because it enables the transportation of goods that are sensitive to temperature, including items like fruits and vegetables, fish and other seafood, dairy and frozen desserts, bakery goods, etc. Given that it has a refrigeration system and an effective storage system, it aids in maintaining the freshness of these commodities. In addition, sea transportation is less expensive than air or land transportation and has a bigger carrying capacity, allowing it to handle huge commodities.
Fresh foods Maritime transportation refers to the shipping of perishable goods over water. Because perishable commodities cannot be kept in storage for lengthy periods without decaying or decomposing, quick shipment is necessary for them. The perishable foods that are supplied by ship most commonly are dairy products, frozen desserts, fresh produce, baked goods, and confections. Perishable items can also be shipped by air, however, it is a much less prevalent type of shipping.
The market for shipping perishable goods is anticipated to increase at a CAGR of 5.5% from 2021 to 2031, from an estimated value of USD 8.9 billion in 2021 to USD 12.7 billion by that time.
The market is influenced by several factors, including the rising demand for fresh foods, the ease of shipping goods by sea as opposed to other means of transportation, and the expansion of ports around the world that enable better handling of perishable goods with refrigeration.
High processing costs, lengthy transit times, lack of knowledge about sea transportation among small-scale manufacturers, strict government regulations on sea transportation due to pollution, and a lack of dependable shipping routes are the main restraints for the perishable goods sea transportation market. Nonetheless, strong regulatory measures have been put in place by the authorities to manage and limit the pollution that ships generate, which is expected to help the market thrive. Additionally, over the next few years, e-commerce's rising popularity is anticipated to fuel market expansion.
COVID-19 Impact and Market Status
The market for the marine transportation of perishable commodities has been significantly impacted by the COVID-19 outbreak. Travel prohibitions and restrictions, as well as significant disruptions in the global food supply, have all been brought on by the outbreak. Increased labor expenses brought on by health safety regulations have also slowed down shipments, which has reduced demand for perishables to be transported by sea. The market is anticipated to rebound in 2021, however, as a result of the removal of travel restrictions and a steady increase in international trade activities.
The Outbound Transportation Segment emerged as the Most Lucrative Type
The market for perishable goods shipped by sea is divided into two categories of transportation: domestic and international. Due to its affordability and simplicity, the outbound transportation segment dominated the worldwide perishable products sea transportation marketplace in 2020 and will do so going forward.
The Most Prominent Application is the Fish and Seafood
The market can be divided into segments based on application, including those for meat, fish, and seafood, dairy products, frozen desserts, fresh produce, and bakery goods. Given that it is one of the most frequent food items carried by sea, the fish and seafood segment is anticipated to hold the highest proportion of the worldwide perishable products transshipment market during the forecast period.
The Retail & Wholesale End User emerged as the Most Lucrative Segment
The market can be segmented into Retail & Wholesale, the Food Processing Industry, and Others based on end users. Due to rising consumer demand for fresh food, the retail and wholesale segment is anticipated to rule the market growth over the forecast. Retailers' increasing reliance on e-commerce channels for consumer delivery of goods is another element influencing the market.
The North American Region to render Ample Financing Opportunities
The market for perishable goods shipped by sea can be divided geographically into North America, South America, Europe, Asia Pacific, and the Middle East and Africa. Due to the existence of some of the main ports in nations like Canada and the US, North America is anticipated to dominate the market.
The following are some of the major players in the perishable goods sea transportation market: CMA CGM S.A., Crowley Maritime Corporation, Maersk Group, ACL (Atlantic Container Line), Stolt-Nielsen S.A. of Zurich, APL Co. Pte. Ltd., Mediterranean Shipping Company (MSC) S.A., Mitsui OSK Lines (MOL), Pacific International Lines (PIL), and Ocean Network Express (ONE). Many of these businesses have also adopted various cost-cutting strategies to boost operational effectiveness, save expenses, and enhance customer service. These strategies include automated procedures, digitalization, and the introduction of cutting-edge technology like IoT-enabled containers.
Recent Developments in the Perishable Goods Sea Transportation Market
• The inauguration of Maersk and MSC's dedicated reefer service from Europe to South Africa and the East Coast of South America in 2020 is anticipated to shorten the time perishable commodities must travel during transit.
• A double-decker reefer vessel that can transport up to 9,600 chilled containers from Asia to Europe in less than two weeks, the Fresh Sea Express (FSE) service, was introduced by CMA CGM Group in 2020.
• Due to the expansion of e-commerce and the rising demand for food products, it is predicted that by the month of March 2021, the global market for perishable commodities marine transportation will be worth $1.5 trillion.
Perishable Goods Sea Transportation Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2031||USD 12.07 billion|
|Growth Rate||CAGR of 5.5 % during 2021-2031|
|Segment Covered||by Type, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||CMA CGM S.A., Crowley Maritime Corporation, Maersk Group, ACL (Atlantic Container Line), Stolt-Nielsen S.A. of Zurich, APL Co. Pte. Ltd., Mediterranean Shipping Company (MSC) S.A., Mitsui OSK Lines (MOL), Pacific International Lines (PIL), and Ocean Network Express (ONE).|
Key Segments of the Global Perishable Goods Sea Transportation Market
Type Overview (USD Billion)
- Domestic Transportation
- Outbound Transportation
Application Overview (USD Billion)
- Fish, and Seafood
- Dairy and Frozen Desserts
- Vegetables and Fruits
- Bakery and Confectionery
End User Overview (USD Billion)
- Retail & Wholesale
- Food Processing Industry
Regional Overview (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa