News
- Lines Boxed In by Container Shortage
- 7/12/2010
Lines Boxed In by Container Shortage
The price of containers has hit a 20-year high as a result of a shortage that has reached “critical” levels. Analyst AXS Alphaliner said the current price of a new 20ft dry box had increased from US$2,000 per unit at the end of last year to $2,750 last week reports “IFW”. The analyst’s figures show this is the highest price since 1991 and far above the average for the last 10 years of between $1,500 and $2,400. As a result, Alphaliner said it expected demand to outstrip supply during the third-quarter peak season.The growth in demand is reflected in sales figures from CIMC, which is reporting orders for 102,900 TEU in just the first quarter of this year, compared with 60,400 TEU in the whole of 2009. Output of new containers this year is expected to reach between 1.5 and 2 million TEU, well down on the 4.2 million TEU produced in 2007 and the current fleet of 5 million TEU. Forwarders and shippers are expecting a tough peak season and fear the shortage of containers will result in further price increases and delays to cargo.