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Shipping Container Production Shortfall.

Once again the industry is suffering a huge hike in the new build container prices ex factory in China. Shipping Container Trader inside sources confirm new builds at $2950 US on new orders having just returned from China. We are in for a very turbulent year ahead. Used containers that are in reasonable condition are becoming increasingly rare to purchase with rates hitting over £1300 in some dealer locations. Trade is suffering equally as badly with China desperate for empty containers for exporting goods globally. We have been told that some big shipping lines are now looking to introduce an equipment repositioning charge to pay to get empties back to China.

This will get more serious in the coming next few months and will remain an issue for a long time at least until the end of this year or early next. SCT's source is confident that while we are currently enduring this nightmare 2011 will see new build containers dropping in cost. Our hope is that once plentiful supply of new builds become readily available shipping lines will release older stocks and ultimately release the strangle hold on retail sales. Check out our advertisers links for container sales.
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UK based Fabrication and site services have secured a significant contract with Channel Seaways Ltd in the Port of Poole in Dorset to under take on site container repair operations. Managing partner John Greenfield ( ) said " This is an exciting development for our company as we have secured this work through recommendation. Our services value for money and customer satisfaction over the past 15 years has again paid huge dividends. We will work closely with Channel Seaways Ltd to ensure a quality maintenance and repair program along with updated CSC certification"  

Contact Fabrication and Site Services UK S shed The Port of Poole New Harbour Road Poole Dorset BH15 4AF   TELEPHONE 07736 328336  

UK based Fabrication and Site Services UK have been given the go ahead to manufacture and supply Shipping Container Tracking device housings to a major global logistics group. The product which was prototyped only 6 months ago, enables a satellite tracking device to be fitted to shipping containers by way of a clamp system fitted into the top corner casting of any ISO container.

Managing partner John Greenfield commented, "Shipping Container tracking is not a new technique by far but what we have created enables the device to be fitted during train or road transportation from port to delivery location. The device is then removed fitted to a storage rack and then re-used on return movements. This enables every stop that each container makes to be monitored and will reduce in-transit theft and losses. The military and various logistics operators have expressed an interest in the concept and given the enormous volume of shipping containers in operational fields due to conflict this device would serve well to reduce huge losses.

The system which comes in racks of 20 devices and housings is not cheap but when you consider these facts, $25 billion in containerised merchandise was stolen in the US each year, the European Union estimates that 8.2 billion Euros worth of cargo was stolen off of trucks every year and the total worldwide theft of cargo approaches $50 billion, this product will be very warmly welcomed.

According to Shipping Container Trader resources the production of new build dry Shipping Containers fell in the final months of 2008 and throughout 2009.
It speculated that global shipping container capacity fell by 5% in 2009 due to selloffs of older boxes.

This period saw many well-known Shipping Container manufacturers lose over half of their skilled workforce. This was predominantly through extended holidays and redundancies as a result of production slowdowns. Shipping lines globally remain optimistic but this year financial restraints will dominate the new build Shipping Container acquisitions in 2010. Shipping Container production in 2010 will show reduced levels of production to between 750,000 and 1,000,000 new builds. When you consider the production level was at between 2.9 and 3.2 million units through 2006\ 2008-it puts the industry position into a clear prospective. It is noted that there could be a global shortage of new build Shipping Containers this year. The overriding result Shipping Container prices taking a hike upwards. This again having an adverse effect on our already depressed markets. Shipping lines are now holding onto containers for longer operational periods, so again sell offs may decline through 2010

The planned £500m container handling facility at Avonmouth Dock near Bristol has been given the green light today by the government. This ultramodern container terminal will be built partly on salvaged land from the River Severn, giving the City of Bristol a huge leap forward in the ability to service the next generation of super sized container ships. The Bristol Port Company pushed the plans forward as current facilities could not adequately service the demand. Four years of hard work has today finally paid dividends. Shipping Container Trader inside sources have learned that more than 1,000 new job vacancies will be generated by this very welcome development.

Copenhagen :
New box ship player, The Containership Company is set to start services from China to Europe and the US in the next few months once fundraising is completed. Erik Holmberg CEO of RS Platou Markets said interest in fundraising for the new company had been very good, Danish newspaper Borsen reported. The company is placing out 15m shares to raise $50m in funds. Once funding is completed, TCC which aims to emulate the success of low cost carrier airlines, plans to charter six to eight ships for a China to US West Coast service and up to a further 10 ships for a China to Europe service. The services will be based out of the Chinese port of Taiwan and offer direct port to port calls only, with no additional door-to-door logistics services that most major lines offer.

China Shipping Container Lines Company Limited
on Thursday 13th May 2010 posted a loss of 6.49 billion Yuan (950.31 million U.S. dollars) in 2009, down from a net profit of 134.69 million Yuan in 2008. Revenues fell to 19.94 billion Yuan from 2008's 35.25 billion Yuan, a year-on-year decline of 43.4 percent, said the company in a statement filed with the Shanghai Stock Exchange. Loss per share was 0.5554 Yuan, from earnings of 0.0115 Yuan per share in 2008, according to the statement. Another shipping line suffering from the global meltdown.

CYCLE said the sharp fall in revenues and profits mainly stemmed from a shrinking market amid the global downturn, a decline of 42.7 percent from the previous year in cargo fares and a 28 percent rise in management costs. The company said it expected its revenues in 2010 to grow 31 percent from 2009 to reach 26.17 billion Yuan, while operation costs would increase on rising fuel prices.

The company's stock ended Thursday's morning session down 2.65 percent to 4.41 Yuan per share.

Neptune Orient Lines Ltd
the owner of Asias largest container line by fleet size, forecast a return to profit this year as the global economy slowly starts the long road to recovery. Global trade and cargo rates slowly looking like increasing will have a huge influence on profitability. The global operating environment continues to improve since the end of last year. With luck this boost will continues and see Neptune Orient return to profitability for the full year. The shipping line and logistics provider suffered catastrophic losses last year.

Neptune Orient showed its smallest loss in six quarters in the period ended April 2 after moving 46 percent more boxes. CEO of Neptune Orient says he plans to increase capacity this year and return some mothballed ships to service. It is hoped that more shipping lines like Neptune Orient will return to profit in the second quarter. The big picture now is how much of this upturn can we expect to continue? Many shipping lines have increased container capacity and brought mothballed ships back into global service. Having dealt with these troubled times, the global shipping container industry whilst optimistic is in reality very cautious. The knock on effect is the support services such as repair yards and storage facilities suffer. Shipping Container Trader reported earlier this month on the production of new build containers in decline. Now due to an upsurge the supply cannot keep up with demand. New build containers ex China costing more, and yet another price hike on the horizon can we really see an end to this global meltdown?

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