Market Trends of Container Shipping Industry
Increasing high cube containers segment
- • High cube containers are available in various lengths, including 20-foot and 40-foot options. The key feature of high cube containers is the increased height. While a standard container is 8 feet 6 inches high, high cube containers are 9 feet 6 inches tall.
- • High cube containers are used when extra vertical space is needed. They are beneficial for transporting goods that may not fit within the standard height due to their dimensions or for maximizing cargo volume efficiently.
- High-cube containers are used for all types of general cargo (dry cargo). However, they are particularly suitable for transporting light, voluminous cargoes and overheight cargoes up to a maximum of 2.70 m tall.
- The primary advantage of high cube containers is their extra height (9 feet 6 inches), providing more cubic capacity than standard containers. This allows for transporting more significant or taller cargo, offering flexibility in handling various goods.
- Statistics on the production of containers show that a few years ago, more than 6.6 million dry freight containers were produced, which will drop to 3.45 million TEU in the next few years. The trend in production is still fluctuating, with expectations of an increase mainly driven by replacement needs. The average cost of a new high cube container can range from USD 3,000 to USD 7,000, while a used unit may be around USD 1,50 to USD 5,000, depending on the size.
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Asia-Pacific dominating the market
- China is a global supplier of goods, trading with almost every nation. The GDP of the nation is significantly influenced by foreign commerce. Global demand for Chinese commodities (completed items or raw materials) is high. In the first quarter of 2023, China's exports showed a stunning recovery despite experiencing obstacles in international markets.
- According to May Asia, China's exports increased by an impressive 14.8% in March compared to the same month last year, marking a positive turn of events after a period of decline.
- In the top 10 global rankings for 2023, Chinese shipping center cities are notably represented, according to the most recent edition of the Xinhua-Baltic International Shipping Centre Development Index. Cities like Zhoushan, Hong Kong, Ningbo, and Shanghai were well-represented on this list, highlighting China's increasing importance in the global shipping sector.
- Japan is the third-largest ship-owning country in Asia after China and Greece. Asian countries, including Japan, lead in cargo handling performance and have several ports ranked among the top globally for efficiency and connectivity.
- All of India's major ports handled 463.98 million tons (MT) of cargo traffic between April and October of 2023. India's major ports handled 446.50 million tons (MT) of cargo traffic between April and October of the previous year. India exported USD 417.8 billion of goods a few years ago, a 40% increase from the prior year. Exports of goods totaled USD 447.46 billion in FY23. The government has implemented several mechanizations, deepened the draft, and implemented quick evacuation policies to increase operational efficiency.
- In April–May 2023–24, among all commodities, containers handled the highest cargo of 30.22 million tonnes in India, accounting for 22.6% of the total. Next in line were POL–crude (20.6%), thermal coal (15.1%), other commodities (8.2%), iron ore/pellets (7.1%), POL products (6.7%), other coal (5.7%), coking coal (4.6%), LPG/LNG (1.8%), iron & steel (1.2%), fertilizer (1.2%), FRM dry (1.1%), edible oil (1.1%), other ores (1.0%), FRM liquid (0.9%), cement (0.4%), and sugar (0.3%).
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