Since our last update on COVID-19 inventory disruption, new challenges have emerged. If you've been around shipping containers long enough, I'm sure you remember the stock shortages of 2009-2011. Well get ready...it's happening again
There's a term in the shipping container industry called "repositioning". And while on its surface it sounds like a good thing, that helps get shipping containers into markets where they are needed most, that's usually not the case.
And this time is no different. With production levels down in Asia, there is a demand for more containers to export goods from manufacturing centers to other parts of the world. Its cheaper and faster for the cargo lines to do this versus ramping up production of new builds, during a time (COVID-19) when labor forces are in high demand, and backlogs of production are driving up prices on new equipment. In short, the shipping lines that use these containers for cargo most often, are buying up on the ground stock and sending empty units back to Asia.
What's this mean for you?
Well... suddenly our retail customers (thats you) are competing with Shipping lines for the purchase of Used Shipping Containers. This makes stock very scarce if available at all, and as you can imagine drives up pricing overnight.
You will start to see dramatic price increases, especially in mid-west inland port areas, where exports are not as frequent. If you've been waiting for the right time to buy, you may have actually missed your window for a great deal on a used box.
What do we suggest? Check with a sales rep for stock! It's not nearly as easy and efficient as things would normally be on our easy to use website. But it will give you realistic expectations on when your container will be available.
If you have a time sensitive project, call us and get answers to make sure we have in stock what you need. All our reps are very skilled at finding alternative locations, and will work hard to find you a great deal.
How long will this last?
No one can be sure, as its so closely related to many macro economic influences. We know that doesn't help much, but knowing the cause for sudden price increases, will for sure help you in the buying process.
If you have the room in your budget, we strongly suggest you consider buying "One Trip Containers", as they typically maintain higher stock levels. Keep in mind however, as stock on used equipment becomes short, New Shipping Containers will become more in demand and prices will rise quickly.
Be sure to check our online store for pricing and inventory. We will be doing our best to keep up with rapid changes, and we are available to discuss any upcoming purchase requirements you may have.
If you have questions, we suggest you book a meeting with one of our product specialist who can share the most current information.
If you're still in price research mode, use our quote form below to get a formal quote emailed to you.