Shipping Container Prices Set To Rise By End Of Year

in Container
The shipping container market is facing an acute shortage of containers as the manufacturing units are still recovering from the slump in the market because of the global recession. Singamas Container Holdings Ltd. is the worlds second-biggest maker of shipping boxes and they have said that prices will increase as much as 9 percent by year-end as shippers struggle to keep up with the demand for shipping containers in the global trade that is picking pace rapidly.

The price of a standard 20-foot shipping box in the market has already risen to 50 percent this year and it may climb to about $3,000 as early as December, Chief Executive Officer Teo Siong Seng said in an interview in Singapore July 16. Teo also said that there might be a global shortage of as many as 4 million containers. As the trade picks in the global economy, the shipping lines are facing shortage of containers and at many places they are refusing containers and rising rates for shipping because of lack of boxes.

The market is quite tight right now, said Um Kyung-A, an analyst at Shinyoung Securities Co. in Seoul. Shipping lines have to bring back empty containers from Europe and the U.S. to meet Asias export demand. According to Textainer Group Holdings Ltd., the largest container lessor in the world, the worldwide box fleet shrank by 4 percent last year. The lack of containers in the market and their heavy demand means that this is a golden opportunity for investors to invest in the shipping containers and fulfill the demand created in the industry. As the prices of the shipping containers are set to rise by the end of the year, the investors can earn great profits by buying shipping containers now and leasing them to interested parties. Pacific Tycoon is one company that can help investors by providing them with high yield investment opportunities in form of shipping container investments. Investors can make safe high yield investments in the containers through the company and the company will make all arrangements to lease the containers to the interested parties. Find out more by browsing through
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Ted Mallory has 1 articles online

Edward Ted Mallory is the CEO of Pacific Tycoons container business. Ted joined the company in 2007, holds a degree in law from Exeter University. His fields of expertise are International Maritime Law, Maritime Insurance and Finance.

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Shipping Container Prices Set To Rise By End Of Year

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This article was published on 2010/10/19