The latest news on the “critical” shortage of containers is that the price of new boxes has hit the highest prices asked since 1991. Christopher Lee, MD of container suppliers/ converters Container World, told FTW last Thursday that the news confirmed in the previous 48-hours was that the price of a new 20-foot (6-metre) dry cargo box had increased from US$2 000 per unit at the end of last year to US$2 750. “And,” he added, “in some cases – depending on specifications – even higher.” Market analysts expect demand to outstrip supply during the third quarter, which is a peak season for seafreight in both the northern and southern hemispheres. But Lee questioned just how long this supply/ demand ratio would last. Europe's newsletter Alphaliner said: “Container manufacturers are facing difficulties in restoring full capacity following the cutback in production of dry containers since October 2008. “Capacity at the main container producers has been cut back significantly since late 2008, as production lines were shut and twin-shift operations reduced to single shifts. “Although annual production at the two largest container manufacturers, CIMC and Singamas, is over 3.5 million TEUs, they are expected to produce only 1.35 million TEUs this year.” The growth in demand is reflected in sales figures from CIMC, which is reporting orders for 102 900 TEUs in just the first quarter of this year, compared with 60 400 in the whole of 2009. Output of new containers this year is expected to reach between 1.5 and 2 million TEUs this year, well down on the 4.2 million produced in 2007 and the current fleet of 5 million. Forwarders and shippers are expecting a tough peak season and fear the shortage of containers will result in further price increases and delays to cargo.
