‘Good time to buy reefer containers’

Just as the oversupply of tonnage has seen the prices of newbuildings hit rock bottom, a similar trend applies in the container industry – at least for reefer boxes. “This is definitely a good time to buy,” says Ralf Stuewe, manager operations at DAL Liner Services, who says prices are currently very attractive, particularly for reefer containers because the factories have capacity. According to Stuewe, last year approximately 120 000 reefer containers were built – 110 000 40-footers and 10 000 20-foot boxes. “Owing to the recession, only half as many will be delivered this year.” But for dry-cargo containers, it’s a different story. Although the market for dry containers has collapsed, the prices have hardly changed at all, and the reason is one of supply and demand. Stuewe explains: “In the past few years, container factories have sprung up like mushrooms in China. “When the recession set in the factories were closed and currently only a handful of factories are still producing – and the vast majority of these are in Chinese hands. “Therefore China has a monopoly and can dictate the prices.” While in the boom years of 2007 and 2008 the prices for new drycargo containers rose dramatically, mainly due to the high prices of materials like steel and wood, as well as the high demand, the closure of the factories has led to a decrease in supply, keeping prices high.