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.