The Global Shipping Containers Market, By Product Type(Dry Containers (20’ (20 ft.), 40’ (40 ft.), 40’ High Cube and Others), Reefer Containers (20’ (20 ft.), 40’ (40 ft.), 40’ High Cube, Others), Tank Containers and Others) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 16,183.3 Million by 2027, exhibiting a CAGR of 5.9% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
A shipping container is a container with strength suitable enough to withstand shipment, handling, and storage. These containers can be transported via rail, ships, or trucks. Therefore, the intermodal transport of goods has become more efficient. The shipping containers have enhanced the ease of handling cargo. Furthermore, it resulted in removing conventional loading unloading of cargo directly on the ship, thus saving valuable time and resources. The global shipping containers market focuses on five regions namely North America, Europe, Latin America, Asia Pacific, and Middle East & Africa.
The global Shipping Containers market was valued at US$ 103,50.1Mn in 2019 and is forecast to reach a value of US$ 16,183.3 Mn by 2027 at a CAGR of 5.9% between 2020 and 2027.
Steady growth of emerging economies is expected to support the global shipping containers market growth over the forecast period
Growing industrialization in emerging economies has boosted trade flow, which in turn, increased the demand for new containers. According to Coherent Market Insights’, the GDP growth for emerging economies was 4.5% in 2014 and is projected to increase to 5.4% by 2021. Hence, these factors are expected to drive growth of the global shipping containers market in the near future.
Shipping Containers Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 Pandemic have adversely affected the economies of various countries around the globe. According to the International Monetary fund Analysis, the global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019. Due to the reduction in the size of global economy the spending or purchasing power of people also decreases. Currently people are majorly buying products such as food items and groceries. These economic slowdown affected various industries around the globe including the shipping industry. Owing to the above mentioned factor COVID-19 is expected to restrain the market growth during the forecast period.
Declining oil prices can provide major growth opportunities for market players in the near future
Oil prices have declined significantly in the recent past. Since oil prices influence a large part of operating cost in intermodal transportation. Reducing oil prices free-up a major part of the capital for shipping companies and hence, they prefer to invest this amount to acquire more shipping containers. Therefore, these factors offer lucrative opportunities for market players.
Constant fluctuations in raw material prices are expected to restrain growth of the global shipping containers market during the forecast period
Steel is the major raw material for manufacturing shipping containers. Steel pricing is fluctuating constantly, which in turn, affecting the final costs of end products such as shipping containers. This uncertainty in the pricing of raw materials adversely affects growth of the shipping container market to a certain extent. According to Coherent Market Insights’ analysis, in2014, average selling price of 20’ dry containers in China decreased by 5% to US$ 2,086 as compared to that in the previous year. This was mainly due to a decline in global steel prices. Hence, these factors are expected to restrict growth of the global shipping containers market over the forecast period.
Among regions, North America is expected to witness significant growth in the global shipping containers market during the forecast period. This is owing to the high growth of shipping industry and freight transport across the region. Moreover, rising demand for perishable products and a robust interstate highway network is expected to propel the North America shipping containers market in the near future.
Asia Pacific is expected to register a lucrative rate in the global shipping containers market during the forecast period. This is owing to increasing population and high growth of shipping industry across the Asia Pacific region. Moreover, increasing the construction of ports and harbors in emerging economies such as India, Indonesia, and China.
Major companies involved in the global shipping containers market China International Marine Containers Co., Ltd., Sea Box, Inc., Singamas Container Holdings Limited, China Cosco Shipping Co. Ltd., TLS Offshore Containers International, CXIC Group Containers Company Limited, W&K Container Inc., Maersk Container Industry, YMC CONTAINER SOLUTIONS (a division of Thurston Group Limited), and Dong Fang International Container (Hong Kong) Co., Ltd.
Major market players are involved in orders, contracts, and agreements, in order to gain a competitive edge in the market. For instance, in April 2020, Maersk Container Industry received an order from Evergreen for 1,800 Star Cool reefers.