THE global container equipment fleet last year saw an increase of 14 per cent, or 7.2 million TEU, bringing the total to 50.5 million TEU driven by demand from ocean carriers, logistics operators and beneficial cargo owners (BCOs) trying to protect their supply chains.
According to John Fossey, senior analyst for container equipment at Drewry Shipping Consultants, equipment production will fall to between 4.5 million and 4.8 million TEU this year - but this will still rank as the second-highest annual increase on record, reports London's The Loadstar.
"The demand for equipment remains strong as the recovery from Covid-19 continues. We see continuing growth in the perishable products sector, beverages and the bulk chemical and liquids markets, which will drive demand for both reefers and tank containers," said Mr Fossey.
"And there is still the big issue of availability, and the overall productivity of containers. It is taking much longer for boxes to complete their journeys and be returned to the areas of demand."
Other factors that were influencing new orders, added Mr Fossey, included the need to retire ageing equipment kept in service longer than the normal 12 to 15-year life cycle, the demand from ocean carriers "flush with cash" to build more buffer in their pools, and other transport operators and BCOs that have decided to operate with their own fleet of boxes.
Indeed, with containers taking an average 30 per cent longer to complete their transport cycles last year due to port, landside and haulage delays, Drewry estimates that the vessel slot operating ratio on container trades will reach closer to x2 this year, from a 2019 low of around x1.75.
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