New Dry-Freight Box Prices on the Rise

MarineLink.com
Monday, April 14, 2014
File image CCL3

Prices for new dry freight containers increased in the opening months of 2014 for the first time in two years, observes Drewry's latest 'Container Leasing and Container Census'.

Standard box prices declined gradually throughout 2013, falling by late in the year to their lowest point since 2009, and they have so far barely managed to recover 10% by April 2014. They presently stand at much the same level as one year ago.



“It is too early to say whether the equipment pricing trend as truly reversed, as the box equipment market remains volatile,” said Andrew Foxcroft, consultant with Drewry Maritime Research.


Drewry notes that new container box prices, are still not showing any signs of increases.

 Last year’s relative absence of any peak season pick-up in the summer months depressed dry freight container production for another year, with the annual total for 2013 falling short of 2012, and well short of 2011. 


The outlook for container manufacturers in 2014 is not expected to be very different to last year, and thus remains relatively downbeat. Container demand is not forecast to recover much, even if the uptake in the usually busy 2Q/3Q period may yet prove stronger than in 2013.

Global container equipment fleet growth is again predicted to fall short of 5% for 2014, with the box lease industry almost certain to account for most expansion and container carriers ordering a minority share of new containers. This has already dominated during the opening quarter, with box lessors taking the majority of new dry freight containers and an even bigger share of new reefer boxes.



Similarly, charter owners, rather than container carriers, are behind most of the recent orders for containerships. 

Nevertheless, as in 2013, dry freight/reefer lease rate are likely to remain under pressure, with little likelihood of any recovery in the initial cash returns generated from new equipment rental. Just as new pricing is expected to stay depressed and volatile, so will rental per diems continue with their struggle to remain at parity.


Source: Drewry’s Container Leasing and Container Census

http://www.drewrysupplychains.com/

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

IOMAXIS Awarded $245 Mln Contract to Support NRL

Contract will allow IOMAXIS to provide research, development and technical support to initiatives at the Naval Research Lab   IOMAXIS, provider of technologies

Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates

Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Container Ships

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

SOLAS Container Mass Verification Rule Enter into force

A new regulation requiring the gross mass of a container to be verified before it is loaded onto a ship enters into force today (1 July 2016). It will assist in

UASC Shareholding States Vote to Back Hapag-Lloyd Merger

United Arab Shipping Company (UASC) said its six shareholding states backed a merger deal with German container shipping line Hapag-Lloyd AG at a meeting on Wednesday.

Marine Equipment

Norsafe Secures Contract with VARD Group

Norsafe informs it has signed a new contract with VARD Group, and will supply lifeboats complete with davit systems to a series of 15 new vessels.    Topaz Energy

Solstad CSV Gets Propulsion Overhaul at Gibdock

Gibraltar’s Gibdock shipyard has completed its scope of work on Solstad Shipping’s Normand Cutter, a 127-meter-long, 10,979grt construction support vessel (CSV)

Rolls-Royce Azimuth Thrusters Ordered for New Tug

Rolls-Royce has won an order for US255 FP z-drives from San Francisco’s Vessel Chartering LLC, a wholly owned division of Baydelta Navigation. The thrusters will

Consulting

MAST, AMSA Partner for Risk Management Services

Maritime security company Maritime Asset Security Training (MAST) has announced their partnership with Astbury Marine Services & Associates (AMSA), a specialist

Boon, Non-executive Director of ST Engineering Resigns

Singapore Technologies Engineering Ltd (ST Engineering) today announced the resignation of Mr Quek Tong Boon as non-executive Director with effect from 1 July 2016.

BIMCO - Oil Product Tankers Earnings Decline as stockbuilding Slows Down

BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016.

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1036 sec (10 req/sec)