Drewry estimates that as many as 6 million TEU of surplus containers now exist in the global equipment pool following a boost in of over a tenth in the global pool last year.
The global pool of shipping containers increased by 13 per cent to almost 50 million TEU in 2021, which was three times the prior growth trend.
In 2021, lessors and ocean carriers were ordering a record number of containers, while retiring fewer ageing units, as congestion across global supply chains meant containers were an estimated 15 to 20 per cent less productive than in pre-COVID-19 times, according to Drewry’s Container Census & Leasing Annual Review & Forecast 2022/23 report.
Drewry estimates that each container averaged 18.1 lifts in 2021 compared with 19.2 in 2020 and between 19.5 and 20.6 in the 2010s.
The number of containers per slot of vessel capacity increased by 8 per cent in 2020 when the pandemic started and remained at this level throughout 2021.
Drewry estimates that as many as 6 million TEU of surplus containers now exist in the global equipment pool. While large by historic standards, Drewry considers this surplus to be manageable for the industry.
“The delivery schedule of new ships is very strong with slot capacity expected to increase by 3.6 million TEU in 2023 and by over 3.9 million TEU in 2024,” said Drewry’s Head of Container Equipment Research John Fossey.
“With new IMO emissions regulations coming into force in January 2023 forcing some ships to sail slower, much of the surplus equipment currently in service is expected to be absorbed.
“In addition, there is evidence to suggest that some carriers are planning to have more buffer stock in their equipment pools, while fewer new containers will be built in the next two years.”
Drewry forecasts that output in 2022 and 2023 will be much lower than last year, at 3.9 million TEU and 2.4 million TEU respectively, with replacement accounting for most of the orders.
While newbuild and second-hand prices will fall, a return to the very low prices of 2019 is not anticipated as manufacturers are expected to manage their capacity and pricing strategies very carefully, Drewry adds.
Meanwhile, the secondary market remains robust and the uses to which ex-trading containers can be put to use continues to expand.
“Looking ahead, ocean carriers will be the main buyers of equipment over the next two years with lessors then taking control again, raising their share of the pool to 54 per cent by 2026,” added Fossey. “Moreover, per diem rates and investment cash returns will general be higher over the forecast period than in the past five years.”