Drewry: prices and lead rates better than expected
The coronavirus outbreak will lead to a contraction in the shipping container fleet and keep prices and lease rates under pressure in 2020 - although better than in 2019, says London (UK)-based maritime intelligence provider Drewry.
Its latest published container equipment forecaster report shows that in 1Q20 newbuild prices and lease rates for all of the main categories of containers were up on 4Q/2019 and 2019 as a whole. While the outlook for world trade was on an optimistic note at the beginning of the year, intense volatility in the market became the rule.
At the start of the year, the price of a 20ft standard container stood at about USD 1,750. By the end of February, it had increased to as much as USD 2,150, before a sharp decline to approximately USD 1,900 in late March. Total box output (dry freight and reefer) in 1Q/2020 was one of the lowest in a quarterly period; 33% lower than 4Q/2019 and 35% below that of the corresponding period of 2019. (mw)