A growing number of importers are now in negotiations with Chinese plywood exporters to switch from traditional dry containers to reefer containers for sea transportation, driven by the significant cost advantage of reefer container shipping. Currently, the ocean freight for reefer containers is considerably lower than that for conventional dry containers, a difference that offsets the reduced loading capacity of reefer containers and ultimately results in lower total procurement costs.
This trend is not limited to China; plywood exporters from Thailand and Malaysia have also begun adopting reefer containers for shipments of birch plywood to the United States, aiming to cut down on sea freight expenses. A key factor contributing to this shift in Southeast Asia is the specific characteristics of their birch plywood products with rubberwood cores. Due to the high density and heavy weight of eucalyptus and rubberwood materials used in the core, this type of plywood can only be loaded 14 to 16 pallets per container.
Given this limited loading capacity, the use of reefer containers—with their much lower freight rates—becomes a more cost-effective option for Thai and Malaysian exporters. By choosing reefer containers over dry ones, they are able to substantially reduce the overall transportation costs, which in turn lowers the total procurement costs for importers. This strategic adjustment in transportation methods reflects the industry’s efforts to optimize supply chain costs amid volatile global shipping markets.
The widespread adoption of reefer containers for plywood transportation highlights a flexible approach by exporters and importers to adapt to market conditions. While reefer containers were originally designed for temperature-sensitive goods, their current cost advantage has made them a viable alternative for non-perishable items like plywood. As global shipping rates continue to fluctuate, this innovative use of reefer containers is expected to remain a popular cost-saving strategy in the plywood export industry.
