During the onset of the world wide recession around 90% of Container manufacturers in the far East ceased production, this was due to the banks reluctance to offer financial support to major container operating Companies. This has forced new build prices up, which in turn is making many companies think twice about placing orders. The long and short of it is that there are considerably fewer new shipping containers coming on stream this year.
A knock on effect of the lack of new containers being ordered by the shipping lines and leasing companies is that any old stocks are now being used instead. Boxes that would normally be turned to sale due to age or repair costs are instead being returned to service.
With both new and used containers now being in such short supply second hand prices have now also increased to near record levels. Companies or individuals needing equipment are increasingly looking towards leases and rentals or self storage instead of purchasing due to the short supply and high prices.
We believe that these circumstances are set to remain for the foreseeable future, until the economy recovers.
