Recently, Spinnaker Equipment released its Box Market Briefing for Quarter 1 Update for 2023. A box market briefing is typically a summary or overview of the current state of the market for box products, such as shipping boxes or storage boxes. This type of briefing may include information on market trends, industry statistics, and key players in the market. It can be used by businesses to stay informed about the market and make strategic decisions.
In 2022, there have been supply chain issues in relation to shipping container sales and rentals. One issue is a shortage of shipping containers due to an increase in e-commerce and online shopping. This has led to a high demand for shipping containers, resulting in a shortage of available containers for sale and rental.
Another issue is a lack of available shipping vessels to transport the containers, leading to delays and increased costs for both shipping container rentals and sales. This has caused prices for to rise, making it more difficult for businesses to acquire the containers they need.
Additionally, the COVID-19 pandemic has also contributed to the supply chain issues by disrupting global trade and causing delays in the production and transportation of shipping containers. This has further exacerbated the shortage of shipping containers available for both purchase and rental.
Used container Inventory January 2017 – Dec 2020 fell and then rebounded.
By January 2021, the peak of Covid-19 for North America, inventory had again fallen, and rebound a fraction if what it had in March of 2019. New container inventory for the same time period show an upward trend until Jan 2021, when inventory bottomed out to nearly zero. At the present time, new and used inventory rates remain unstable.
According to the Market Report, Q1 2023, the shipping container industry “…continue(s) to be impacted by slowing cargo demand from China to the main western consumer markets.” Once, at its all-time high, in March of 2016, North American sales of used 20-foot DC containers was at roughly 158, per month. After that time period, the sales and rates increased until Q1 of January 2021. From that date, until the end of December, 2022, this number sunk to 57, per month.
The cost to acquire specific new containers were stable and on an upward trajectory from March 2015 through December 2020. The market stabilized during the years 2016 and 2020. As 2021 began, the global averages for prices on all models spiked. Specifically, the cost of a 40’ HC Dry Average leapt 200% per unit, out pricing the rest at $6500 per unit. Making this historic 2006% leap, in 2021, clearly shows costs have been on the rise, while inventory has shrunk. The choice models being 40’ HC Dry Average and 40’ Dry Average both coming in at a rate of approximately $3000 each at the end of 2020 containers was widely unstable. At the end of 2022, 40’ HC Dry Average lowered a bit to approximately $4500 per unit, which is still 150% of costs in 2015.
The supply chain issues are not over, yet. During 2021 and 2022, new container inventory was unstable. For example, the 20’ HC New, in March 2016, approximately 50 units, at a cost of $2500 and $3500 per unit was noted for used and new containers, respectively. During 2022, the inventory rate skyrocketed from almost nothing at a cost of approximately $2000 to over 500 units, each unit costing approximately $4500, in a matter of months. Inventory fell again and costs remained high. According to Jérôme de Ricqlès, of Upply.com:
“Western demand collapses because of factors which were (all happening at) once political, economic and technical:
At the end of 2022, Spinnaker equipment closes with this sentiment, “As the year ended new box price stabilized while used box prices continue to fall towards long term averages.”
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