Box lessors confront a changing market

Textainer is the latest leasing company to have a new ownership structure following the decision of its management to sell the company to Stonepeak, an alternative investment firm based in New York, in a deal worth US$7.4B.

Shipping lines are returning some containers, but at this point not in numbers that the secondary market cannot absorb; 98% of containers are on fixed rate terms and finance lease contracts.

As demand for new containers starts to fall Textainer says its performance in Q2 “demonstrates the resilience of our business model in the current environment.”

Bloomberg has reported that HNA Group is preparing to sell container leasing company Seaco for “about $1 billion”.

Fast-growing container leasing company is increasing market share, untroubled so far by the prospect of a tariff war dampening global trade. 

After making a loss in four consecutive quarters, Textainer returned to profitability in Q3 2017, with a profit of US$18.4M. The turnaround was driven by much better market conditions, and Textainer recovering from the impact of the Hanjin Shipping bankruptcy.