More boxes come from lessors than ever, leasing rates expected to increase

MOST containers made last year were bought by leasing companies, which are expected to account for as many sales this year, according to the Institute of International Container Lessors (IICL).


Carriers have usually get half of their containers through purchase from box makers, but sourced more from lessors last year.


Bloomberg's US Container Leasing Index tracks the stock prices of four publicly traded container leasing companies, Textainer, TAL International, CAI International and SeaCube. The index has been climbing since March 2009.


Lessors paid $4 billion for 1.6 million TEU of the 2.75 million TEU made in 2010, said the IICL, according to American Shipper. That includes all types of containers standard, reefer and other specialty boxes.


"While many of the ocean carriers, the primary providers of containers in international trades, were concentrating their efforts on their core service activities, they turned to leasing companies to source a significant portion of their container needs," said IICL president Steven Blust.


Containerisation International reported that 3.5 million TEU are expected to be made this year and 4.3 million TEU next to fill the growing under and ever-enlarging ships afloat as well as accommodate the consequences of slow steaming, which keeps more boxes at sea longer.


Said Mr Blust: "Our members are optimistic vessel operators will continue to ask for boxes. It looks like it will be as strong as it was last year. Leasing companies are prepared to provide, [and] make that investment and make equipment available."
(Source:http://www.schednet.com)