The global shipping container market is expected to be valued at USD 6.4 billion in 2027. While the shipping and transportation market is currently facing a shortage in the supply of containers, it is expected that the supply of shipping containers will increase during the period of forecast. The anticipated CAGR during the period of forecast (2020 to 2027) is 12.0%. From a market segmentation perspective, based on the type of container, dry containers occupied approximately 70% market share in the overall container market and it is expected to drive the market during the period of a forecast as well.
The COVID pandemic negatively influenced the shipping containers industry. WTO has analyzed that there was a 9.2% decline in the volume of global merchandise trade in 2020 (compared to its previous year). In 2021, the trade volumes increased by 7.2% as compared to the trade-in 2020. The increased trade volume from 2021 was mostly carried out through containers. This indicates the growing demand for containers for trading.
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Containers are used to transport bulk materials via container ships on seaways. A shipping container is usually made of sturdy material which ranges from reusable steel boxes that are used for intermodal shipment, ubiquitous corrugated boxes, or even wooded pallets. While shipping containers may come in various sizes, the four most popular sizes of container sizes are 8-feet shipping container, 10-feet shipping container, 20-feet shipping container, and 40-feet shipping container. Even among these varieties of sizes, the 20-feet and the 40-feet shipping containers are the most popular containers. The shipping containers are essentially manufactured as per ISO specifications not only to have hassle-free loading and unloading but also to be capable of withstanding extreme environments and maintain their structural integrity during a voyage.
Cost Drivers
Growth in international trade is boosting the demand for intermodal shipments. However, there is currently a global shortage of containers and due to this, the tariff rates for transport have been increasing continuously. This is prompting the shipping and transport providers to take several actions like optimization of ship routes to touch base with more ports, increasing the number of available ships over an extended period and introducing more containers into the market. These steps will help in the growth of the market.
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The COVID pandemic has proved to be a challenging time for the shipping industry in general and hence a challenge to the shipping containers industry as well. With ports imposing travel restrictions and trade volumes decreasing, H1 2020 saw fewer TEUs being transported globally. This resulted in lesser containers being circulated in the industry and therefore affected the revenue generated for container suppliers. In addition to this, disrupted supply chains resulted in ships being stuck at ports for a longer duration which implies that containers were being held at seaports or inland. For the containers which were stuck at ports or inland, additional fare needed to be paid for their safekeeping and storage. Therefore, the containers, instead of becoming a source of revenue generation, proved as cost heads during the pandemic.
Key suppliers of shipping containers are:
- China International Marine Containers Co. Ltd.
- Maersk Container Industry AS (A.P. Moller)
- CXIC Group, Singamas Container Holdings
- Bertschi AG, CXIC Group
- W&K Containers, Inc.
- Thurston Group Limited
- OEG
- Sea Box, Inc.
- IWES Ltd.
- Norcomp Nordic AB
The shipping containers industry is neither too fragmented nor too consolidated. There are several players operating in this industry and most of them are international operators. However, the industry does not have a clear market leader which would be capable of dictating the terms of the market.
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