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When it comes to purchasing a shipping container, both availability and cost can vary widely depending on several key factors. From global supply chain dynamics to regional demand, understanding what drives these variables is crucial for making an informed decision. At Container Sales Group, our goal is to provide you with the information you need to make the most informed decision.
Factors that Influence the Availability and Pricing of New and Used Shipping Containers
- Global Trade Activity – Trade Levels or Trade Volume refer to the amount of goods being bought and sold between countries. This requires shipping containers for moving these goods. When trade volumes are high, more containers are needed to transport goods, which can reduce the availability of both new and used containers for sale. Conversely, during periods of reduced trade, more containers may become available for sale.
- Production Rates of New Containers – The manufacturing of new shipping containers depends on the production capacity of container manufacturers, primarily based in China. If production is running at full speed, new containers are more readily available. But, if disruptions in manufacturing occur, such as factory shutdowns or material shortages, can limit the supply of new containers.
- Geopolitical Events – These events happen around the world like political conflicts, wars, diplomatic tensions, trade disputes, economic sanctions, territorial disputes, and alliances that can significantly impact the price and availability of shipping containers. Additionally, increased risks and uncertainties may cause shipping companies to hold onto containers longer, further reducing availability and raising costs.
- Shipping Demand and Container Usage – When trade activityis high, containers are used for longer trips, which means fewer are available for sale. Also, because they aren’t being returned quickly, certain areas may run out of containers, leading to shortages.
- Container Lifecycle and Condition – Older shipping containers that are retired from moving overseas are often sold as used containers. Some steamship lines refurbish them for continued use, this reduces the supply of used containers in the market.
- Seasonal Variations – Certain times of the year such as Christmas there is a high trade activity and have a higher demand for shipping containers which reduces their availability for purchase. In off-peak periods, more containers are available.
- Logistical Bottlenecks – Port congestion, delays in customs, or disruptions in transportation can cause containers to be stuck in certain locations, making them temporarily unavailable for purchase in other regions.
- Repurposing and Recycling – As more containers are used for alternative applications, such as in storage or building, fewer containers are available for purchase.
- Economic Conditions – The broader economic conditions impact the production of new containers and the supply of used ones. In times of economic downturn, companies might sell extra containers to generate cash, which boosts availability.
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Conclusion
Understanding these factors can help you make a more informed decision when purchasing a shipping container, ensuring you get the best value for your investment. At Container Sales Group, we prioritize transparency and make it a point to educate our customers on the latest pricing and availability. Feel free to give us a call at 708-639-4783.
