Container demand pushes up prices

One barometer for measuring
the fortunes of the logistics
industry is in containers and
their utilisation by shippers.
By this measure “last year was
a tough year all around,” said
Warren Jacobs, sales manager for
Durban-based Almar Container
Group.
“We are a regular supplier to a
number of logistics companies.
We deal with them either on a
sale or lease basis, where the
majority of cargo is exported.
A number of the containers are
supplied on a sale basis where
the container is ultimately
utilised for onsite storage or
conversion. We get a feel for the
condition of logistics businesses
from our customers. We are
seeing an improvement in
the movement of larger cargo
volumes into Africa as a lot of
companies are bouncing back
after a slow period. With the
increase in overborder work, our
forecast for growth is positive,”
commented Jacobs.
That being said, the second
half of the year looks set to be
characterised by a container
shortage. “We have regular
suppliers for second hand
containers, in certain shipping
lines and leasing companies, but
supply worldwide is tightening
up and as the container shortage
starts to take root we are seeing
an increase in prices,” said
Jacobs.
To ensure availability, new
boxes manufactured in China are
purchased.
“We have continued with our
new-build programme in 2010
to supplement our lease fleet
and to ensure availability of
new equipment. There has been
a significant price increase in
new-build containers in the first
half of 2010 and the trend looks
set continue with prices rising
further,” he noted.