SIMIC

SeaCube Containers global sales director Danny den Boer declared world container fleet grew 15 per cent to 51.4 million TEU, compared with pre-Covid average annual growth of five per cent.

"It's exceptional, caused by the severe disruptions in global supply chains," Mr den Boer said on a webinar hosted by Hamburg's Container xChange.

"But it was also because people shifted to spending on goods instead of services, which is also why we have seen a record number of newly produced dry units in the market."

Furthermore, Mr den Boer explained only 400,000 TEU entered the resale market last year, compared with 1.6 million TEU in 2019.

"In general, the supply into the secondary market always kept pace with demand. However, due to the low volumes entering the market in 2020 and 2021, demand significantly exceeded supply, and that caused a surge in container pricing," said Mr den Boer.

Container prices have softened since the Ukraine-Russia war and lockdowns in China, although they remain higher than 2019 levels.

According to Container xChange data, TEU prices in Duisburg saw the biggest drop in April, falling 16.8 per cent to US$1,933. Likewise, Dubai saw a 14.4 per cent drop to $2,182.

The most expensive TEU, as of May 16-23, was in Los Angeles US$2,523, Mundra $2,413, and Milan $2,348, while the priciest FEU was in Ho Chi Minh $4,443, Shanghai $4,400, and Mundra $4,369.

"The market is extremely volatile. We see softening in demand and downward pressure on prices for both new and used equipment. We see more units being disposed into the secondary market in Asia," said Mr den Boer.

"But long-term prices really depend on how long the situation will continue in China; for example, we could see an increase in prices when China is up and running again."