Shipping lines has been expediting to restore the freight rate based on the brisk recovery of export from Asia to North America and Europe.The 2010 profit of each Shipping lines would be improved a lot.The absolute quantity of on-use containers among shipping lines would be running short. However, most of shipping lines (except some exception) would intend to heavily rely on long term lease while shipping lines don’t acquire own new production due to uncertainty in the future.
Meantime, leasing companies will have to keep buying new containers under any circumstances. It is very importance for leasing companies to show their positive attitude to support shipping lines wherever and whenever they need containers in order to earn reliability and good reputation from shipping lines. The volume of new production from leasing companies would be kind of measurement to check momentum, power, seriousness of leasing firm of each year. It is said that almost of new production available in factories of China has already been committed under long term lease. In April certain Japanese line concluded 50,000teu L/T with several leasing firms. The worldwide stock of leasing companies would tell you the flow of cargo movement. It means that empty containers should be moved from surplus places to demand places. Los Angeles, New York, Rotterdam used to be surplus but no more these days. India seems to be the last problematic place where one third of idle containers of leasing firms is said to be stored these days. However, India seems to be no longer problematic place because shipping lines have started leasing idle containers of India with incentives offered by leasing companies which would encourage shipping lines to pick them up instead of New Production to be required to commit as long terms lease. An incentive pick-up of idle containers by shipping lines would also welcome by leasing companies who don’t have ships to move to other demand places. Certain major Japanese lines was reported to pick up 4,000 units ex India with favorable terms from one of major leasing companies. As a result, there are only a few containers to be introduced into 2nd hand container market. Therefore, most 2nd hand dealers seem to have been in severe competition to secure their certain share of the retired containers available in the market. However, it is a matter of life or death for 2nd hand dealers who could not secure certain volume of 2nd hand containers. This situation would be very questionable in view of the viable future of 2nd hand market. It is unclear how far the 2nd hand containers price would go up in coming months. I cannot help feeling a touch of uneasiness for the situation that shipping lines and leasing companies have been driving 2nd hand dealers to corner to get them buy their retired containers as much high as possible.