Box Prices Rise for the First Time in 2 Years

MarineLink.com
Thursday, April 10, 2014
Photo: Drewry

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.

“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 containership prices, unlike 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.

drewry.co.uk
 

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Cat Financial Announces Second-Quarter 2014 Results

Cat Financial reported second-quarter 2014 revenues of $728 million, an increase of $34 million, or 5 percent, compared with the second quarter of 2013. Second-quarter

General Dynamics Gets $67mi Order from Peruvian Govt.

The Peruvian Ministry of Defence has awarded a USD$67 million contract to General Dynamics Land Systems-Canada for 32 Light Armoured Vehicles (LAVs) for the Peruvian Marines.

BW Offshore to Fully Own FPSO Petroleo Nautipa

Following to BW Offshore's announcement of 9 July 2014, BW Offshore has signed a sale and purchase agreement with Yinson to take 100% ownership of the FPSO Petroleo Nautipa,

Container Ships

MES Gets First Order for ME-GI Marine Engine

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) has received the first order of electronically controlled gas injection diesel engine (ME-GI) for MES. MAN B&W 8S70ME-C8.

London, Brazil Terminals Boost DP World Container Volumes

DP World , one of the world's biggest port operators, said on Thursday that its gross container volumes rose 10.7 percent from a year earlier in the first half of 2014.

CMA CGM MANET in Sydney with Select Burgundy Wines Cargo

CMA CGM Group is pleased to announce that the CMA CGM MANET will arrive in Sydney International Container Terminals in Australia on July, 22nd. The bottles of

News

6 MW Offshore Wind Turbine of Siemens Certified

Siemens Energy has obtained type certification of DNV GL for the company's innovative D6 offshore wind turbine. The model Siemens SWT-6.0-154 is equipped with a modern direct drive generator,

Turkey Approves EIA Report for South Stream’s Offshore Section

The Ministry of Environment and Urban Planning of Turkey approved the Environmental Impact Assessment (EIA) Report and issued a positive opinion of the EIA results

Worrying Trend of Tanker Hijacks in SE Asian Waters: IMB

The Piracy Reporting Centre (PRC) of the International Chamber of Commerce (ICC) International Maritime Bureau (IMB) raises concerns over a worrying trend of

Logistics

Nation’s Vessel Operators Join EPA as SmartWay Affiliate

The American Waterways Operators, a 350-member trade association representing the U.S. tugboat, towboat and barge industry, announced today that it joined the SmartWay Transport Partnership,

House Subcommittee Hearing Highlights “Dismal State” of U.S. Icebreaking Capability

At the July 23, 2014, hearing of the House Subcommittee on Coast Guard and Maritime Transportation on “Implementing U.S. Policy in the Arctic” the committee chairman, Rep.

Thome Is the First to Sign up to IMPA Act

Leading integrated ship management service provider Thome Ship Management has become the first ship management company to join IMPA ACT, the responsible supply chain management initiative,

 
 
Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1346 sec (7 req/sec)