High steel prices squeeze container rental market

KEVIN MAYHEW
THE INCREASED price of steel internationally continues to impact on container rentals as owners retain and refurbish existing boxes to extend their lifespan rather than renew at higher prices.
However, a spread of services has enabled Omega Containers to maintain the momentum of its objective for the past year – improve infrastructure and company capability to meet the demands of Durban business. More containers to rental, a new head office on the Bluff and its own space in key container terminals attest to this success.
Says managing director, Mark Cringle: “Fortunately there has been no real negative trend in our core business, cabotage, but we have obviously felt the shortage of suitable containers to purchase for rent,” he said. Cabotage, the movement of empty containers from a port where there is a surplus to a port experiencing a shortage, represents about 60% of Omega’s hundreds of TEUs moved each month. This service is offered between various South African major ports and Johannesburg to Zimbabwe, Zambia, Mozambique, Swaziland, Lesotho, Boswana and Namibia.
The company offers full and empty crosshauls out of the Durban Container Terminal, Multi-Purpose Terminal and Point areas.
Omega has increased its rental capacity to 150 20 and 40 foot general purpose boxes, while other sizes and types can be sourced on request, said Cringle.