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Facing high container prices, shippers are sad while leasing companies are happy

Time:2021-07-29 Publisher:Kevin Num:4717

Now one of the most serious problems facing the global freight industry is the shortage of containers. Due to the imbalance between supply and demand, the price of containers is rising.

However, the increase in demand also makes some shippers ignore the price and continue to compete for containers.

According to the data released by a container leasing company, the data records the changes of container prices from 2011 to 2021. In the first five years, the price of containers showed a downward trend, from US $2200 to about US $1300.

Five years later, containers began to rise slowly and have now risen to nearly $3800.

According to relevant personnel, at the beginning of this year, the price was about 3000 US dollars. In only half a year, the price soared to 3800 US dollars. This price level is unprecedented.

Before the pandemic, the lowest price of a container was about $2000, almost half of the current price.

We all know that if we want the price to fall, we have to achieve relative stability in supply and demand. 

However, many factories in China have produced more containers than before to stabilize the balance of supply and demand, but the price is still rising.

According to relevant data, the factory has produced nearly 2.5 million TEUs, which is more than the total in any previous year.

It is estimated that the production of containers will continue to rise, and is expected to exceed 5 million TEUs.

By the way,If you are worried about not finding container space,   GLA can provide 40 foot container leasing and SOC cabinet global services.

Main lines include:

•   Chinese ports to European countries

  
  

•   Chinese ports to Moscow, Russia

Container leasing market is booming

The rising price caused by the shortage of containers is very uncomfortable for shippers, so their profits will continue to decrease or even have no profits.

In contrast, container leasing companies are very favorable to them.

According to the relevant data report of container leasing companies, there has been a net profit of about US $140 million as of the first half of this year, compared with us $60 million last year, which is enough to see that the container leasing market is very hot. 

The leasing company wants this situation to continue, but it is very unfriendly to the shipper.

At the same time, many container leasing companies say that the average term of leasing containers is about 10 years, because shippers can reduce the pressure caused by short-term high rent.

In general, in the face of the current container shortage, all freight transport participants should unite to get through this difficult period

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