Shipping Container Shortage Update – November 2020

It is easy to expect the current shipping container shortage to run into, at least, early next year as China's main factories are keeping production very low. Prices on new containers have surged as shipping lines and leasing companies have cut back on sale equipment to retain the available inventory for their own use. Many of the current containers being sold are in dead end markets or being sold in wind/watertight condition.

When will the shortage end?

That is the multimillion-dollar question. With the current US election concerns and the CORONA virus crisis keeping much of the world on lock down, there is no telling when the market will resume to normal trading.

Should I Buy a Shipping Container Now?

There is no telling what prices will do, but it is safe to assume they are not going down in the immediate future. If you are shopping for a shipping container and need it now, it is not a time to wait around. If your need is not in the next few months then you may be able to wait it out, but there is no idea for how long.

In Summary

The world is a crazy place. International and intermodal trade is still taking place globally, but companies are being more creative with where they make and save money. Shipping lines are squeezing more life out of their assets, even if that means it might be sold for a little less, in a worse condition, whenever the world returns to normal. It really comes down to if you need a container and see it at a fair price, the right time to buy it is when you need it. Every day there is different news from a different pundit about when things will clean up and so far everyone has been wrong.