The trend towards shipping
lines leasing containers rather
than the traditional owning
of their own fleets seems to be
continuing.
Lines now own only
slightly more than 50% of all
containers, and owned fleets
are growing at well under half
the pace of lessors’ fleets. Also,
the leased container equipment
fleet is increasing in size well
above the growth in the ocean
freight market.
And the reasoning behind it,
as we reported at this time last
year, remains the same. The
lines, battered by an enduring
financial weakness of low cargo
demand volumes and cut-price
freight rates, are still displaying
weak owned-fleet growth.
This trend to leasing rather
than owning was also being
encouraged by container rental
rates that had fallen to an alltime
low, reported the shipping
consultancy, Drewry.
And the trend is on-going
despite new container prices
also being at their lowest levels
for many years, according
to Christopher Lee, MD of
Container World.
“Over the last couple of
years,” he told FTW, “the
leasing industry has grown as
lines lease more than they’re
buying. An indicator is that
the first quarter has been
pretty grim for the Chinese
box makers – who produce
80% of the world’s containers
– because of the low trade
volumes.” He noted that there
had been a slight uptick in
manufacturing and prices, but
the latter only at “a few dollars.”
Also, the leasing companies,
prompted by these rock-bottom
new container prices, are
buying more than the demand
they face, according to Lee,
another factor in pushing
down leasing rates as lessors
try to move their growing
fleets.
The overall trend is very
much driven by lines trying
to spread their operational
costs over a period rather
than facing the upfront high
capital outlay for buying a new
container fleet.
And the shipping
companies are even taking
this cost spread to another
level. Said Lee: “For cash
flow, the lines are doing
sale/leaseback deals, selling
their own container fleets
to container lessors and
immediately leasing them
back.”
CAPTION
Lines own slightly more than 50% of all containers.
