PRICES
for new dry freight containers declined to their lowest point since 2002 during
first-quarter 2016 and are still going down, according to the latest edition of
the Container Equipment Insight, published by London’s Drewry Maritime Research.
Average
container equipment price fell 15 per cent through the first quarter, as the
deteriorating outlook for trade growth impacted pricing.
Because
of this and the fact that steel and other material costs are no longer in
decline, Drewry estimates that the container manufacturing sector made a small
net loss in the first quarter of 2016.
Used
dry freight container prices also declined further, to a level not seen since
in almost a decade, the American Journal of Transportation reported.
"New
box output has slumped markedly this year, with leasing companies again showing
a strong reluctance to buy," said Drewry's analyst for the container
equipment sector, Andrew Foxcroft.
"That
suggests 2016 could prove to be the weakest year for box production since the
collapse of 2009, with equipment increasingly in surplus. Central to the
problem is the already sizeable stockpile of new containers at factories in
China, including substantial production from 2015 still awaiting
collection."
The
lessors' inactivity can be further explained by the depressed state of rental
rates, which dropped yet further during the first quarter. The average fell
another 10 per cent on its position late in 2015, having declined in line with
prices.
Source
: HKSG.
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