Drewry projects growth in the leased container equipment fleet will slow

Shipping research and consulting firm Drewry projects the global leased container equipment operating fleet will increase by a little more than 1 percent in 2016.    London-based shipping research and consulting firm Drewry projects the global leased container equipment operating fleet will increase by a little more than 1 percent in 2016, following slow growth of just 3.5 percent in 2015.
   Overall, container rental demand declined in 2015 and by the end of the year, rental rates were at an all-time low. In addition, the price of new and used containers has declined because of weaker demand and the drop in the cost of steel and factory running costs.
   Fleet expansion is expected to outrun that of dry freight only in the more specialized reefer and tank container sectors, Drewry said.
   “The outlook has deteriorated further for 2016 and the leased fleet is again predicted to grow in line with that owned by transport companies, with each managing only a marginal increase for the coming year,” Drewry’s lead analyst for container equipment Andrew Foxcroft said. “However, we expect some recovery in subsequent years and our longer term projection for 201619 is for annualized growth of 3.5 percent, which will still be some way off trend growth over the last 15 years. “By the end of 2016, the overall count of mainstream box leasing companies will have fallen to around a dozen, compared with more than 15 at the end of 2014 and an even greater number in earlier years,” Foxcroft said.