Lessors strengthen their grip on the container equipment market

Lessors strengthen their grip on the container equipment market

The move towards container leasing and away from carrier ownership continues unabated and the leased fleet now has a clear majority over that owned by transport operators, according to the latest edition of the Container Census & Leasing and Equipment Insight published by global shipping consultancy Drewry.

Leasing companies accounted for 55% of container purchases in 2017, which continues the trend seen for most of this decade. With the fleet of containers owned by transport operators growing by a mere 2.4%, the leased fleet added 6.7% and the share owned by lessors is now nearing 52%.

“Drewry expects this trend to continue over the next few years,” said Drewry’s director of research products Martin Dixon. “We estimate that the leased share of the fleet will reach 54% by 2020.”

Container manufacturing staged a 55% rebound in 2017, with dry van building more than recovering from the 2016 slump as buyers responded to the rebound in the liner industry. CIMC consolidated its position by building 88% more boxes last year, while smaller builders such as Dong Fang (143%) and Maersk Container (118%) made even bigger inroads. And yet, despite the influx of new boxes, the average age of the fleet remained above 6.5 years for the second year running.

Newbuild prices have been relatively stable. They recovered quickly as demand returned last year and have been largely stable ever since. Some of the price increase was attributable to rising steel prices. Steel has been at the heart of the trade dispute between the US and China, so any escalation could push prices higher.

“Geopolitical issues notwithstanding, we do not expect any significant change in newbuild prices over the next couple of years,” added Dixon. “However, prices of used containers have been rising steadily, although their future trajectory is harder to predict.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Related Posts