Want to get a container leasing industry overview for the year 2023? This piece will give you a detailed understanding of what’s to come in terms of market growth, segments, prices, and geographic locations. So, if you want to know the details and utilize them for your business growth then keep reading.
According to a recent report, the container leasing market is estimated to grow by 32.86 mn TEU during 2023-2027, accelerating at a CAGR of 16.52% during the forecast period. This boom in the market is driven by growth in international containerized seaborne trade, the rising dominance of leasing players in the global reefer container market, an increase in the number of free trade agreements, and the formation of trade blocs around the globe.
According to Christian Roeloffs, co-founder and CEO, of Container xChange, there’s some good news for freight forwarders in the leasing sector this year. This year is expected to make way for a lot of negotiations which is always a good thing for lowering expenditures.
“Into the year 2023, freight forwarders will be able to go window shopping quite a lot. And there’s going to be a lot of room for negotiation, especially in the early parts of the year. Contract rates will follow suit as spot rates fall significantly,” says Roeloffs.
So far, it’s looking good for your business, isn’t it? Let’s help you get a better understanding of what you can expect this year in the leasing market. So you can make informed business decisions.
Container leasing industry overview 2023: What should you look for?
With so much happening so fast in the industry we want to give you a lowdown on exactly what you should focus on to maximize profits.
Container leasing market customer landscape
Innovation will be at the forefront of the customer landscape in 2023. This will be followed by service, regulatory compliance, relatability, and prices. You can focus on your market strategy now keeping in mind what customers are looking for in 2023.
The key factor to keep an eye out for
The primary trend that has been observed in the global container leasing market this year is the rising popularity of intermodal freight transportation. Simply put, with the growth of intermodal freight and multimodal transportation, container leasing is also expected to increase during 2023.
Leading leasing market driver
The main driver fueling the expansion of the worldwide container leasing market is the need for international containerized seaborne trade. The rise of international seaborne trade, which depends on the use of containers for the movement of goods, will be improved by an increase in trade activities along with economic output.
As a result, the demand for container leasing will increase as more people today prefer leased containers over buying containers to achieve economies of scale, especially when the volume of goods to be transported is low this year. These reasons will drive the growth of the market during the forecast period.
If this takeaway is all you need for the year and want to jump to leasing a container, try our leasing marketplace to lease containers at top rates from vetted suppliers or you can continue reading.
Top 3 global container leasing market trends: Geographic location, market segment, and price
Keeping the above information fresh in mind let’s move on to the top 3 container leasing market trends you should keep in mind to make your container leasing adventure a smooth sail in 2023.
Global container leasing market overview: Geographic location
Location is a major segment of the shipping container leasing market. It gives an overview of the market situation and trends of a particular place. The location of containers is a major driving factor for the ever-changing nature of leasing rates. Because the rates are usually cheaper in easily accessible locations. But they can drastically change in the case of inland or landlocked regions.
China is often considered the epicenter of global trade. This means it’s also responsible for reshaping the global economy after a crisis like the Covid-19 pandemic. China has significant implications for the global supply chain and trade interconnectedness. Notably, it’s only recently that China has emerged (and is on par with the United States) as a major systematic player in trading hubs.
However, there are now many potential locations that are coming out as fast-growing trade markets.
APAC is anticipated to contribute 47% of the leasing market growth in 2023. Locations such as China, India, Australia, Malaysia, Japan, and Singapore are projected to witness growth in port activities, a rise in the volume of containerized goods, and development in the manufacturing industry during 2023. This increase in the volume of containerized goods in these countries is accelerating the growth of the leasing market in these locations, in turn facilitating the growth in APAC regions.
Did you know? India is expected to be one of the fastest-growing economies among the seven largest emerging markets and developing economies. India is gearing up to strengthen its transportation and logistics network to take advantage of the rapidly evolving market conditions. So, are you interested to see how much it costs to lease a box in India? See the platform in action as our expert team guides you through it.
Container leasing industry- Market segment
When it comes to the market segment, the market share growth for the dry containers segment will witness growth this year. Followed by the reefer segment coming in at a close second and the tank segment ranking in third place. Investing in reefers, dry containers, and tanks to lease out when customers require them can surely increase your profit margins.
Container leasing market – Prices
Over the last year, we noticed on the Container xChange platform that one-way pick-up charges for containers were falling in China. These rates were seen to have fallen a significant amount.
In September 2021, these charges were at their peak at around US $2730, while in December 2022, these were somewhere around US $804. This is a 70% decrease. This decline is steeper on the China-US lane. The pickup charges from China to the EU have been declining as well and might continue to do so in 2023 as well.
So, what can you expect in terms of prices in 2023? Christian explains “With the competitive dynamics in the container shipping and liner industry, I don’t expect especially the big players to hold back, and we do expect prices to come down to almost variable costs”.
Example: On our leasing platform, we found that in the month of January, the average pick-up rate for leasing a container from Shanghai to Moscow was US $832. It was US $2,425 in January 2022. The average pickup rate for a cargo-worthy 40ft HC from Shanghai to Rotterdam in January was US $500 in November 2022. Around a year back, the price was US $3,205.”
As you can see there is a steep decline that is not looking up anytime soon.
Improve your container leasing business with Container xChange
Now that you’ve got a lowdown on what’s coming this year, how can you improve, streamline and get ready to make the most out of your leasing business this year?
Say hello to Container xChange, your ultimate online marketplace for all things container logistics and operations. Trusted by 1,500+ vetted members, at xChange, leasing a box is always a smooth experience and super easy! There are 10,000+ containers available in 2500+ locations worldwide, meaning, you will find containers no matter where you are and what your needs are. To top it off, you get 100% market price transparency, where you can see the prices of different containers on one dashboard, compare them with each other and negotiate prices with suppliers directly to make sure that you get the best deal that suits you. Container xChange gives you more control of your shipping needs and whom you’re dealing with.
It’s home to many top leasing companies including Seaco Global, Trident, SeaCube, and other trusted names They’re all members of xChange, and they use our platform to find vetted companies and lease their containers with trust and surety.
xChange enables you to locate all genuine companies under one platform. And in return, you save time, energy, and frustration from juggling between the websites of various companies.
Also with our Insights feature, you have access to actual one-way leasing rates in 130 locations globally and you’re able to compare pick-up charges, free days, and per diems for different stretches and see their development for up to 2 years. If you want a demo of our insights feature click right here.
Get a first-hand experience of our leasing platform, to choose the box you need at your fingertips. Give it a try today!
Container leasing industry overview 2023- 2029: Key Players, value estimation, and analysis
Now that you’ve made it this far, we want to leave you with a few more insights into the container leasing industry this year for more informed decision-making.
Let’s start with the key players for 2023, we have them as follows:
- CARU Containers
- UES International (HK) Holdings
- Beacon Intermodal Leasing
- Raffles Lease
- SeaCube Container Leasing
- CAI International
- Triton International
- Blue Sky Intermodal
If you want to learn more about the key players in 2023 then head on over to our separate blog on the top 10 container leasing companies in 2023.
In terms of the analysis of the value estimation here’s what you can expect this year:
Analysis of the value estimation in 2023
“Tight grip on costs becomes paramount for freight forwarders into the year 2023. While on one hand there will be a great deal of negotiation with shipping lines, on the other hand, operational cost optimization will be crucial for the forwarders.” – Cofounder and CEO of Container xChange, Johannes Schlingmeier.
Want more insights like these to help you better understand the leasing market in 2023? You can download our monthly logistics report below, and stay up-to-date with the latest happenings in the industry.
Here are a few more trends to look out for in 2023 👇
Lease containers with ease at top prices on Container xChange
You’ve now got a thorough container leasing industry overview on this one blog and you’re well-informed to take on what’s to come. So, just like you had one place to gather all the information from, you have one platform — Container xChange— that meets all your container souring needs.
It’s a four-step process on our leasing marketplace at your fingertips:
- Key in your pick-up and drop-off locations and the container type.
- Choose from a list of offers from vetted suppliers under one dashboard.
- Compare these offers and pick a deal that works for you. We only offer competitive rates with zero hidden fees.
- Once you have chosen a deal, directly negotiate with the supplier and source your container.
It can’t get easier than this! About payments, you can rely on our payment handling feature, the xChange wallet. This sends you one consolidated bill each month, so you don’t have to deal with different companies and countries’ regulations. With this feature, you can manage all your transactions in one place.
You also get to skip the hassle of lengthy contract negotiations, background checks, and endless emails. We got you covered on everything. Additionally, our near real-time tracking gives you a clear idea about What is estimated time of arrival? Estimated time of arrival, commonly known as ETA, is a frequently used term globally to denote the time of coming. In the shipping & logistics industry, it is ... More, What is estimated time of departure? Estimated time of departure, or ETD, is the date/time when the vessel or container is expected to start off from the port of origin. ETD is significant as it giv... More, and misuse warnings.
Here’s what one of our happy customers has to say:
“I love to look at potential partners’ company profiles, reading their ratings & reviews and seeing how they perform on the platform makes it easy to choose the right partner. xChange saves me hours of work each week that I would otherwise spend on finding and vetting new partners.”
– Archana Jayakrishnan, VS&B Containers Group, India
So, what are you waiting for? Just like Archana, get started on your container leasing adventure today with xChange and let our expert team show you around our marketplace.
Container leasing industry overview: Common FAQS
What is container leasing, and how does it work?
Container leasing is the business of renting containers for shipping and storage purposes. It’s similar to renting an apartment and paying monthly rentals to your owner. Here, you pay monthly rent to the world’s leading leasing companies.
Who is the largest container leasing company in the world?
There are only 13 established leasing companies in the shipping industry. The leasing market is dominated by players such as COSCO Shipping, Seaco Global, Triton International, and SeaCube Container Leasing.