Shipping Containers Blog

Posts Tagged ‘second hand containers’

There are many types of shipping container conversions.   Shipping Containers themselves, whether new or second hand containers, lend themselves to many projects large or small.  Their shape, and the fact that they are made of weather resistant corten steel, mean that they are very versatile and can be built up in blocks to many different configurations.    But how do you start planning such a project?

At the beginning of this year CS Shipping Containers were contacted by Chiswick Horticultural Association to quote - and then to build - a community centre which would be made out of seven second hand 20ft shipping containers.   It was to consist of a large open plan space with seperate areas for a kitchen and toilets.

But how do you go from a bare site, then groundworks as pictured above to having a completed project?

This series of posts will follow the progress of the project from when we received the order, the conversion of the individual units at the fabrication plant where the insulation, lighting and heating, toilets and kitchen were put into the shipping containers, the delivery and craning of the units onto the site, and the assembly itself.

For those planning multi-container conversions, this should give a better idea of what is involved.  They will compare the merits of using new shipping containers to used shipping containers, the ways in which containers can be got onto a site with restricted access, as well as general points to consider when planning a conversion.

Recently there has been a change in the world of shipping containers.   The scarcity of 20ft second hand containers has meant that we are beginnng to see the price of 20ft containers being the same as, or sometimes more than, 40ft containers.  This will come as a surprise to many who think that the price of containers goes up the larger they are!

20ft used shipping container

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 has increased by nearly £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. 

For shipping 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 and this has meant that there are less shipping containers to the pound!   However, this has resulted in two other knock on effects on the cost of shipping containers.

 Firstly, as far as new shipping containers are concerned , the price increase has meant that less 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 has meant 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 many other 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 containers and their integral 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 that delivery of the containers onto site  is not a problem.  In short, despite the price increases, shipping containers still have 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.

Why buy second hand containers? There are plenty of shipping containers that have only been used to ship over one load from China that are available at reasonable prices after all?

There are multiple answers to that question. Second hand containers are some 50% cheaper than new/once used containers and so just on the question of economics have a place in today’s economic climate. The condition of the second hand container is also usually of high standard. With care you can source a guaranteed wind and watertight, structurally sound container that you can even have painted in colour of your choice. The fact that the container is made of corten steel means that a second hand container is extremely strong and durable and often has another 15-20 years of useful life from time of purchase.

Second hand containers also have impeccable green credentials. Environmentalists gain great satisfaction from re-cycling an industrial waste product. It seems ridiculous that shipping lines find it more economic to source containers from the outbound port rather than return containers from other parts of the world. The containers that are left behind can be used for storage containers, conversions or even for building projects.

Remember too that second hand containers are easily moved to wherever you need them. Designed to be extremely transportable, lorries fitted with hi-ab cranes are able to both deliver and offload the containers almost everywhere with the minimum of disturbance.

New/once used containers have their place for when appearance is important but second hand containers also have a valuable part to play when affordable storage with green credentials

Yesterday we discussed what was meant by new/ex-factory or once used containers.  Today, as promised sees the turn of the second hand container.  When you consider that only one in five containers arriving on our shores go back into shipping, you get some idea of how vast the second hand domestic market for shipping containers actually is.

The new/once used/ex-factory containers we discussed yesterday are obviously suitable for shipping but what about if you want to buy a second hand shipping container for shipping goods abroad - what should you look for?

Just because a second hand container is on the domestic market, it does not mean it can not be used as a cargo container taking goods abroad.  If the container is still structurally sound and carries a CSC plate in date - usually on the doors of the container - it can be shipped internationally.

CSC stands for “Container Safety Convention” and the plate, pictured above, features as the equivalent of a passport for the container to be shipped internationally.  The CSC plate is issued initially for 5 years after the date of manufacture of the container and from thereonafter the container must be examined every 30 months in order to keep the plate up to date.

Some buyers use the CSC plate as an assurance that the shipping container is suitable for domestic secure storage, as it means it has been independantly inspected within the previous two-and-a-half years -  but, a lot can happen to a container within that time, and so just because there is a valid CSC plate it does not guarantee that the container is still wind and watertight.

Tomorrow we will discuss what to look for when buying a second hand shipping container for domestic storage.  In the meantime I hope that this blog has gone some way to explaining what a CSC plate is for those of you who wish to ship goods abroad.