Shipping lines turn to leasing containers

The global trade rebound is pushing shipping lines to rely more on leasing companies such as CAI International and TAL International Group for the containers used to transport everything from bananas to blouses.


Relatively strong growth in trade is creating a good level of need for containers, but supply is very tight and shipping lines aren't purchasing as many containers as in the past, it has been reported.


Shipping lines that competed for containers in 2010 may face an even bigger shortage this year. Demand may increase as much as 11 per cent and manufacturers are limiting production. Even with enough containers currently in use to circle the earth 4.3 times, the shortfall has pushed new container prices to a record, allowing lessors to raise rates.


Beginning last year, "there was a rebound in demand, a shortage of containers, people scrambling everywhere to get the containers, and it was a Shangri-La type of environment for the leasing companies," said Jefferies & Co. equity analyst Mr Daniel Furtado in San Francisco.


The number of ocean shipping containers in use in the global fleet is about 18.61 million units, or 28.54 million TEUs, according to the World Shipping Council’s (WSC) May Container Supply Review.
(Source:http://www.transportweekly.com)