The price of new shipping containers keeps falling to record lows and is expected to fall further during the rest of 2016.
According to a report by global shipping consultancy Drewry, the container index price in 2015 was $1,450 per CEU equivalent (or 20ft standard), a difference of $450 compared with the year 2014 or 15% and by the end of 2015, the index fell close to the all-time low of 2001- 2002.
“Some of the recent price falls 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. “Drewry is forecasting a further possible fall in the overall price for 2016, as it dipped briefly to $1,300 by the second quarter.”
At the same time, the global container fleet increased by 3.8% at the end of 2015 or 1.36 million, the lower index registered than at any previous time, excepting the year 2009.
The forecast for the next years seems to follow the trend, a weak growth with a maximum of 4% to 5% a year between 2016 and 2019.
Drewry said in its report that the low prices of production and material cost, as well as weaker demand, are some of the factors that produced the sink of new container equipment prices and a negative forecast for the following years.
The global consultancy also indicated that the highest growth occurred within the maritime 40ft high cube fleet. An increase that amounted to a net addition of 1.15 million TEU.
“The 40ft high cube fleet is forecast to continue expanding at a faster rate than the maritime fleet as a whole. This gain will come at the further expense of 40ft equipment, leaving the 20ft share intact and unchanging,” concludes Foxcroft.