Box fleet grew in 2011 but oversupply caught buyers out

Mawani (Saudi Ports Authority) and Saudi Global Ports (SGP), which is a joint venture between the Saudi Public Investment Fund (PIF), Singapore’s PSA International, and the Al Balagaa Group, are to invest US$266M in a new logistics park at King Abdulaziz Port in Dammam.

The global pool of dry freight containers is expected to fall in 2023 as ocean carriers and lessors dispose of surplus units that have built up in the fleet since the end of 2020.

Hapag-Lloyd, which is leading the liner shipping industry when it comes to fitting smart devices to its dry freight containers, is pressing ahead with its installation programme. It expects the whole of its 1.6M TEU owned fleet to be smart early in 2024. Already more than 80% of its reefer containers are fitted with devices that in addition to tracking the container’s position, monitor temperature and humidity levels inside the equipment.

This year looks as if it will be the quietest year for container production since 2009, with the output of dry freight standard, dry freight specials, reefer and tank containers unlikely to exceed 1.3M TEU. But there are hopes that 2024 and 2025 will be much better.

After the surge in output in 2021, the past 18 months have proved very challenging for manufacturers of containers, and particularly of standard dry freight boxes. But the output of specials has been rather better and, while accounting for only a small proportion of the global fleet, offers some optimism for the future.

Symcon Industries Private Ltd, which started manufacturing ISO maritime containers in Ahmedabad, western India, just over 12 months ago, has delivered its first batch of containers destined for overseas buyers to Singapore-based Econship.