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            october 18, 2018

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Port of Hamburg Marketing

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Container lessors see sellers' market with global shipping upturn


Dutch container lessors have warned that pressure is building on container equipment as a result of continued strong growth in global demand, reports IHS Media.
Layland Barker, owner of Titan Containers, said after years of limited trade growth, high volume demand from major trades was back.
"This is going to be an issue, we believe. Maybe not just yet, but after Chinese New Year," he said at the Intermodal Europe Exhibition in Amsterdam.
"We will likely begin to see problems with equipment in the spring as volume traditionally begins to rise once again," he said.
SeaCube Container Leasing CEO Robert Sappio said it was too early to talk about a shortage, but demand was strong and that would continue in January and early February.
"I would advise BCOs to make sure that in addition to their discussions with carriers over space that they also demand guarantees that equipment will be in place," he said.
Also highlighting the solid improvement in volume and its potential impact on equipment was Colin Rubery of the Container Traders and Innovators Association.
"There is big demand in the pre-Chinese New Year period, but after that when production starts to pick up again there could be an issue. More so this year than last year because of such high demand, so a lot of the stock in China will be used up," he said.
Another problem is Chinese environment regulations requiring all containers to use waterborne paint. This led to a surge in orders from carriers enjoying a market upturn as the shipping lines sought to avoid any container shortages ahead of the temporary closure of production lines for conversion work to the new paint.
However, Barker said the paint issue had not yet disappeared. "After being painted, the waterborne paint needs to dry, but winter in China is humid and foggy and that means it takes longer for the container to dry and factories are unable to keep production levels where they need to be," he said.

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