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High Container Prices Sparks Switch To Rentals

Wednesday, 5th May 2010
Steel prices have once again gone through the roof. The container factories in China are still not running full shifts as they struggle to replace the workers laid off during the downturn. This has forced new build prices up, which in turn is making many companies think twice about placing orders. The long and short of it is that there are considerably fewer new shipping containers coming on stream this year. A knock on effect of the lack of new containers being ordered by the shipping lines and leasing companies is that any old stocks are now being used instead. Boxes that would normally be turned to sale due to age or repair costs are instead being returned to service. With both new and used containers now being in such short supply second hand prices have now also increased to near record levels. Companies or individuals needing equipment are increasingly looking towards leases and rentals or self storage instead of purchasing due to the short supply and high prices. Leasing companies have been quick to maximise on the increased demand and conversion to leasing by ensuring equipment is taken on long leases and at increased rates. Average utilisation is now in the high 90% and equipment that has sat idle in container depots for years has been on-hired, even from areas normally slow for pick-ups.

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