Andrew Foxcroft News

Container equipment rental rates and cash investment returns remain weak, despite last year’s recovery. But an earlier rise in container prices which lifted values to their highest level in five years will continue to put a dampener on returns, according to Drewry’s latest Container Census & Leasing annual review and forecast report, published this month. Long-term lease rates for standard dry equipment leapt by over 50% in 2017, having begun their recovery the year before as the Hanjin bankruptcy left large quantities of equipment impounded and therefore out of the market. But newbuild prices rose by a similar margin, limiting cash investment returns to around 9%.

Leasing companies are tightening their stranglehold over container equipment ownership as ocean carriers cut back on new purchasing and sell older inventory for leaseback, Drewry's report said. But the lessors’ rapid expansion has come at a price as the combination of low borrowing costs and competitive pressures has had an adverse impact on lease rates and accompanying investment returns. Lease rates slumped to a new low in 2015 and although the improved market climate since has prompted some recovery, they remain well below the long-term average. The pressure on hire rates is not just confined to the dry sector, as reefer and tank leasing rates have suffered in a similar way.

Following markedly slow growth of just 3.5% in 2015 due to decreased rental demand, the global leased container equipment operating fleet is forecast to increase by little more than 1% in 2016, according to the latest edition of the Container Leasing Industry Annual Report 2016, published by global shipping consultancy Drewry. By the end of 2015, leasing companies were again having to shift a sizeable factory stockpile, as well as contending with rental rates at an all-time low. New and used container prices had also fallen to their lowest in more than a decade because of weaker demand and a recent steep drop in the cost of steel and factory running costs.

Cheaper production and material costs as well as weaker demand has driven the price of new container equipment down to record lows and is forecast to fall  further during 2016, according to the latest edition of the Container Census report published by global shipping consultancy Drewry. The container equipment index price at the end of 2015 was $1,450 per CEU equivalent (or 20ft standard), down from $1,900 a year earlier. The average price for the year was $1,750, down 15% on 2014 and by the end of 2015 the index had fallen close to the all-time low of 2001-02. “Some of the recent price fall has resulted from the weakening state of the global economy and the decline in trade demand,” said Drewry’s lead analyst for container equipment Andrew Foxcroft.

Prices for new dry freight containers declined to their lowest point since 2002 during first-quarter 2016 and are still going down, according to the latest edition of the Container Equipment Insight, published by global shipping consultancy Drewry. Average container equipment prices fell 15% through the first quarter, as the deteriorating outlook for trade growth impacted pricing. As a consequence of this and the fact that steel and other material costs are no longer in decline, Drewry estimates that the container manufacturing sector made a small net loss in the first quarter of 2016. Used dry freight container prices also declined further, to a level not seen since in almost a decade.

Container equipment rental rates came under renewed pressure in 2014 and by mid-2015 new dry freight pricing was at a 10-year low, while lease rates had fallen to an all-time low, according to the latest edition of the Container Leasing report published by global shipping consultancy Drewry. Similarly, used dry freight container prices have also reached a five-year low, largely in line with the decline in new equipment costs and also because of increased resale volumes. “The outlook…

Low material costs and stable demand has driven the price of new container equipment down to record lows where it is forecast to stay, according to the latest edition of the Container Census report published by global shipping consultancy Drewry. The container equipment index price hit a 10-year low in June 2015, falling below $1,750 per CEU equivalent (or 20ft standard). The index fell sharply in late 2012 before stabilizing at just above $2,000 per teu throughout much of 2013-14, but has declined sharply this year.

The container leasing sector experienced another year of stellar growth in 2013 thanks to the continuing weakness of carrier financials, according to Drewry’s recently published Container Leasing report. And Drewry forecasts that this trend will continue. The leased container fleet (teu) expanded 7.3% in 2013, fast outpacing the 2% growth recorded by the fleet owned by transport operators, most of whom are shipping lines. This brought lessors’ share of global inventories to an eight-year high of 46%, which marked a 6 percentage point gain on 2009. “The leasing sector’s fleet growth has outpaced that of owner operators for each of the four years since the worldwide recession of 2009,” said Andrew Foxcroft, author of Drewry’s Container Leasing report.

The container leasing sector experienced another year of stellar growth in 2013 thanks to the continuing weakness of carrier financials, according to Drewry’s recently published Container Leasing report. And Drewry forecasts that this trend will continue. The leased container fleet (teu) expanded 7.3% in 2013, fast outpacing the 2% growth recorded by the fleet owned by transport operators, most of whom are shipping lines. This brought lessors’ share of global inventories to an eight-year high of 46%, which marked a 6 percentage point gain on 2009.

Described by publishers Drewry Maritime Research as the definitive Annual enhanced with quarterly updates released in July, October, January and April. The use of containers revolutionised the shipping industry, so the market dynamics that affect the actual boxes used needs serious consideration. This is where Drewry Maritime Research’s new Container Census and Container Equipment Insight subscription provides regular relevant data and analysis. Both reports are researched and written by Drewry’s container equipment specialist Andrew Foxcroft it contains a level of detail, analysis and expert comment not found elsewhere. In one single document you have all you need to know about this important sector.

High cube 40-foot containers are stealing a march on traditional 40-foot equipment and by the end of 2013 represented just short of 50% of the maritime container fleet, according to Drewry’s recently published Container Census report. The overall fleet of maritime 40-foot high cube containers grew by more than 7% in 2013, a much faster pace than the global container fleet whose growth was limited to just 4.3%. “Gains made in the maritime standard fleet came wholly at the expense of standard 40-foot equipment…

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…

Drewry’s latest Container Equipment Insight, exclusive to subscribers of Drewry’s Container Leasing and Container Census reports, saw prices for new dry freight containers increase in the opening months of 2014 for the first time in two years. 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.

After the critical shortages of containers of last year, production has picked up again, but high container prices and a tight ratio of containers to vessel slots will continue to constrain the availability of boxes, according to the Container Census – Annual Survey and Forecast of Global Container Units, a new report from Drewry Maritime Research. At the end of 2010, the global fleet of containers exceeded $90 billion in replacement value for the first time, according to the report, also reflecting the increased unit prices of containers. The comprehensive report, the industry’s only detailed survey of the global fleet of containers…