Friday, 24 February 2012

Container Investors Will Own 45% of Container Market by 2015

Since the crash of international financial markets in 2009, more and more shipping lines have come to rely upon leasing companies, for the containers needed to fulfill their contractual obligations. In fact, the most recent figures suggest that container lessors, occupy a substantial portion of the total container marketplace.

Shipping companies understand that leasing a container is often more costly than ownership, however this approach offers the shipping lines more flexibility, reduces their overhead and it has proven to be more cost effective; in the long run.

Container leasing arrangements are very flexible and well structured, to enable the container owners to protect their principle and enjoy safe investments. Currently, the established container leasing arrangements, fall into three major categories:
  1. Master Lease: Also called full-service leases. In this instance, the leasing company assumes full management of the container fleet and for repositioning, following the off hire and the contract termination.
  2. Long-term Lease: Also called dry leases, this approach is commonly associated with the extended use of the leased container, by an ocean carrier.
  3. Short-term Lease: Also called spot market leases, because the lease price is strongly influenced by current market conditions, and is highly influenced by the volatility of supply and demand.
As a result of container shortages throughout the world, the leased container fleet has increased in both 2010 (8.8%) and 2011 (9%), and is expected to continue to grow through 2015; at rate of 7-8% per annum. With that being said, maritime analysts predict that container investing and leasing companies will likely own 40-45% of the container market, by the end of 2015.

1 comment:

  1. With forecasts showing strong growth for the shipping industry, fueled by the Panama Canal expansion project and new post panamax container ships, the demand for shipping containers is expected to rise steadily; for years to come. Private investors are beginning to see this opportunity, and to partnering with container management and leasing companies, to make long-term, profitable, low-risk investments.