Shipping Container in short supply,Price doubled hit a record high

The trend of foreign trade in 2021 maybe like this!
February 25, 2021
2021 China container transport industry market status and development trend analysis of the industry market space is huge
March 23, 2021

 

Starting from the fourth quarter of last year, container sizes – 20f and 40f containers are gradually “hard to get a box”,

This lets container production enterprises ushered in explosive growth. Some container enterprises are also stepping up production during the Spring Festival to catch up with orders

1.Container products in short supply, manufacturers continue to recruit workers.In Xiamen, Taiping container manufacturing workshop,Every three minutes or more acontainer is finished and rolled off the line

Container factory orders started rising in June last year, especially in August, September ushered in explosive growth.

Correspondingly, China’s import and export of foreign trade has achieved positive growth for seven consecutive months since June 2020, and the total value of both imports and exports for the whole year has hit a record high.

On the one hand, China’s foreign trade orders have increased sharply. On the other hand, the epidemic has reduced the efficiency of overseas ports and overloaded empty containers, which can go out but cannot come back. There has been a mismatch, and the situation of “one container is hard to find” continues.

Orders from container manufacturers increased sharply. Zheng Guoqiang, a front-line worker, has seen his workload increase, while his salary keeps rising. He said that when he first joined the company, his monthly salary was about 7,000 yuan, but now he earns more than 10,000 yuan. He told reporters that in the past six months, more and more colleagues have increased from more than 300 front-line employees to more than 500 now.

shipping container for sale

2.Containers will be shipped after acceptance, the price doubled and the production enterprise turned from loss to profit

The orders of container manufacturers have increased significantly, so how is the profit situation of container manufacturers?What other opportunities and challenges the industry faces?

 

Pan Chunling, general manager of Taiping Container in Xiamen, Fujian province, told reporters that 40-foot boxes for export had become the main type of order sales since the fourth quarter of last year. He said that the current order is scheduled to be produced in June this year, and the customer is in urgent need of boxes.

 

Once finished boxes are off the production line and accepted by the customs, they are basically sent directly to the wharf for customers to use. In order to cope with the shortage of containers, the local customs takes some measures to improve the clearance efficiency.

Under the hot market that a box of container is difficult to seek, the sale price of container is climbing unceasingly. A 20-foot case was $1,600 in the first half of last year, but now it’s as high as $3,600, while the popular 40-foot case has doubled to $5,950, a record high.

 

Mr Pan said he lost money in the first half of last year, but turned a profit in the second half and made a profit of nearly Rmb30m. Despite the profit, but still faces some pressure container manufacturing enterprise, the appreciation of the renminbi exchange loss, recruitment difficult to affect the expansion, more major is container prices soared, raw material prices are also in a rising tide lifts all boats Pan Chunling said the coil a ton in January rose by 1080 yuan, corresponding to their factories, steel cost will increase more than 1000 yuan only.

 

Industry insiders predict that a massive return of empty containers may occur in the third or fourth quarter of this year with the popularization of Covid-19 vaccine, but the entire container industry should not return to the situation of selling containers at a loss in 2019.

With 95 percent of the world’s container capacity in China, the recovery of the shipping industry, the need to replace containers during the 10 to 15 year renewal cycle and the new demand for special containers due to new energy in environmentally friendly buildings will bring opportunities to the industry.

Reporter’s observation: Opportunities and challenges coexist in the container industry.

 

Investigative reporters have found that the hot market of “one container is hard to find” is still continuing. Behind this is the effective control of the epidemic situation in China, the strong demand for overseas orders, and a large number of empty containers at ports are stranded overseas. All these have created unprecedented high profits in the container industry and stimulated a number of downstream enterprises. In 2020, the number of newly added container enterprises is as high as 45,900.

But behind this opportunity, challenges never disappear. The price of raw materials has greatly increased production costs;

Exchange rate fluctuations RMB appreciation, resulting in sales exchange losses;Recruitment is difficult, slowing down the pace of enterprise production.

The industry expects the boom to continue at least until the second quarter of this year.

 

But if there is a turning point in the overseas epidemic port efficiency, the high profits of the domestic container industry is bound to be adjusted back. In the highly concentrated market competition pattern, not blindly expanding production and constantly mining new demand is the way for enterprises to win.

 

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