CONTAINER lines are posting more all-time highs for the first quarter, with some speculating if their earnings are peaking, reports New York's FreightWaves.
Evidence of market easing continues to climb in the container equipment business.
Triton International (TRTN) Executives, the world's largest container leasing company, declared that box production is down, new container pricing is down, leasing durations and leasing rates are down, and the pricing of older containers in the secondary market is down.
"When we look at the market, we say, boy, this is actually a pretty nice market," said Triton CEO Brian Sondey.
"If you had transported us from 2015 to here, this would be unbelievable. But compared to unprecedented shortages and unprecedented pricing last year, it's down a little bit."
Mr Sondey described last year as "an extreme container shortage" and the current market as "still pretty tight" but "not quite as extraordinary as 2021" and "more of a regular market".
Production in 2021 was the highest on record with 7.18 million TEU, according to Drewry.
The average price of new containers neared US$4,000 per TEU in mid-2021. Three months ago it was down to $3,400 per TEU.
That's a 25 per cent drop from the peak but is still higher than pre-Covid crisis prices.
Mr Sondey described July 2021 container pricing highs as "a condition we've never seen before."
"Container prices are now reflected in leasing rates as well," said Mr Sondey.
"I think that just reflects container prices coming back down to Earth a little bit. When container prices are no longer close to $4,000, it's easier to spread the premium [over fewer years]."
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