The cost of new /once used shipping containers has been rising.Even though cost wise shipping containers compare favourably to other means of secure storage, in the last month the cost of a 20ft new /once used shipping container hasincreased by nearly Ãƒâ€š£200. The next batch of new containers exported in from China is likely to be more expensive again. Why should that be when the price of steel is dropping?
Shipping Container cost has always been dependant on both the condition of the container and its location (and therefore the transportation costs involved). The market price of its principal constituent, corten steel, has also been relevant. These are the factors that most people would consider to be the controlling influence on the cost of shipping containers. What is often not taken into consideration as far as shipping containers are concerned is the effect of the currency exchange rate.
Forshipping containers, the currency exchange rate has had a major effect on the cost. Anything to do with shipping uses the US Dollar as its currency. As we all know the Pound Sterling has been dropping significantly against the US Dollar andthishas meantthatthere are less shipping containers to the pound! However, this has resulted in two other knock oneffects onthecost of shipping containers.
Firstly, as far asnew shipping containers are concerned , the price increasehasmeant thatless new shipping containers are being ordered. As a direct result of this some of the factories in China (the main producer of new shipping containers) have closed – and as we all know less competition is never a good thing for competitive pricing!
Secondly, the shipping industry itself is suffering in this recession with less actual shipping happening on a world-wide basis. This hasmeant that the shipping lines are tightening their belts and are holding onto their existing shipping containers for longer. There are therefore less used shipping containers coming onto the market. At the moment the second hand market is holding steady price wise, but prices will no doubt rise as second hand containers become scarcer.
All is not doom and gloom however. In comparison to many other forms of storage, shipping containers are – and will be – priced favourably. After all manyother materials are also increasing in price due to the market conditions! Shipping container conversions such as offices, accommodation and classrooms are going to continue to be a more economic solution than conventional building methods. The modular construction of shipping containersand theirintegral strength mean that they are not only ideally suited for many projects but also that they are always going to be quicker to assemble and instal than bricks and mortar. The fact that the containers are designed to be easily transported by road, rail and sea mean thatdelivery of the containers onto site is not a problem. In short, despite the price increases, shipping containers stillhave a lot going for them!
How long this world-wide recession and the weakness of the Pound Sterling will continue is open to speculation. What will always be true is that shipping containers will continue to be a versatile and economic solution.