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Equipment costs hit record lows
In general, container handling equipment has got cheaper

Equipment costs hit record lows

Lower costs and weaker demand have driven down the price of new container handling equipment to record lows, according to shipping analyst Drewry.

The container equipment index price has fallen from US$1,900 at the end of 2014 to US$1,450 at the end of 2015, close to an all-time low.

According to Drewry, the price fall is down to cheaper production and material costs and weaker demand.

The UK-based analyst is forecasting a further possible fall in the overall price for 2016, as it dipped briefly to $1,300 by the second quarter.

By the end of 2015, the new-for-old replacement cost of the global box fleet was down to US$77bn compared to more than US$90bn in each of the previous five years.

Despite this low price, growth in the container handling equipment fleet was the slowest it has been since the economic crash of 2009.

Drewry expects similarly slow growth, four or five percent maximum, until 2019 at the earliest.