In the first quarter of this year, container shipping companies continued the excellent performance of 2021, but the container equipment market showed signs of weakness.
As we all know, the rising demand in the container market has led to an increase in new containers ordered by liner companies and leasing companies, and container production will also rise. Meanwhile, the rental time for liner companies will be extended, which will lead to higher container lease fees, and the sale price of old containers after the lease expires will increase accordingly.
Recently, executives of Triton International, the world's largest container leasing company, said that the current container production, new container prices, lease terms, lease rates, and old container prices are all declining.
Brian Sondey, CEO of Triton, noted that while the current market is still good, it has indeed declined compared to last year's unprecedented equipment shortages and freight rate levels. It is closer to the market norm.
Data from Drewry shows that global container production reached a record high of 7.18 million TEU in 2021. Production in 2022 is expected to be well below last year's levels.
There are data showing that the development of the air cargo market is not optimistic either.
According to the International Air Transport Association (IATA) and Clive Data Services, air cargo demand and global air cargo volumes declined in March and April as manufacturing and supply chains were adversely affected by the Russian-Ukrainian conflict and the COVID-19 pandemic.
IATA said air cargo demand in March fell 5.2% year-on-year, with seasonally adjusted cargo volumes falling to a 16-month low.
According to a report by Clive, global air cargo volume fell by 8% in April compared to last year. The company previously reported a 4.5% year-over-year decline in global air cargo traffic in March.
Both agencies attributed the slowdown in air cargo to the Russian-Ukrainian conflict, pandemic prevention and control restrictions, airport processing delays due to shortages of warehouse staff, and high inflation that dampened consumer demand.