The critical shortage of containers in 2010 will ease slightly but steep prices and a tight ratio of containers to vessel slots will still hamper the supply of boxes in the near future, says a new report from Drewry Maritime Research.

The London-based research firm predicts that availability of containers will be tight during the forthcoming peak season, but not as acute and as widespread as in 2010.

According to Drewry’s “Container Census – Annual Survey and Forecast of Global Container Units,” the global fleet of containers exceeded $90 billion in replacement value for the first time at the end of 2010, also reflecting the increased unit prices of containers.

It said the shortage would continue because the dominant Chinese container manufacturing industry was restricted to operating at half its maximum twin-shift potential throughout 2010, largely because of problems over restarting factory lines and rehiring labor after more than a year of idleness.

“If capacity is more tightly controlled by the container manufacturing sector than in the past, it will likely result in higher new container prices,” Drewry said. “Material/production costs are also forecast to rise over the longer term, thereby providing a further inflationary stimulus.”

It added: “It remains to be seen if continued high container prices will deter new investment, particularly from cash-strapped shipping lines who have found it harder to secure financing in recent years.”

You May Also Like

Royal Air mounts 5 new daily flights from Clark by Nov

Philippine carrier Royal Air Charter Service, Inc. is set to operate daily flights from Clark International Airport (CRK) to Puerto Princesa, Cebu, Caticlan, Tagbilaran,…

Mindanao rail project cost jacked up by 131%

The Investment Coordination Committee-Cabinet Committee (ICC-CabCom) of the National Economic and Development Authority (NEDA) Board on July 10 approved the increase in project cost…

Upgraded R-10 Road opens to motorists in Jan

The road that traverses the old Smokey Mountain area in Manila and that used to be congested by informal settlers will be turned into…

BOC levies charges against alleged smugglers of refined sugar worth P6M

The Bureau of Customs (BOC) recently filed before the Department of Justice (DOJ) smuggling charges against alleged illegal importers that brought in refined sugar…