The container-leasing industry demonstrated great resilience by navigating through and recovering from the Hanjin Line bankruptcy in 2016, the largest such failure in container shipping. The business collapse left many vendors — including the leasing industry — with exhausted resources and equipment left all over the world.
Inventories of new containers remain well managed and below levels of the last two years. There is strong demand for depot units across many markets; accordingly, per diem levels have well recovered, but still have some way to go. The global container equipment fleet is expected to grow at a CAGR at over 5 percent per year for the next few years.
Capital markets remain robust with a large number of very successful container ABS issuances in 2017, far more than in 2015 and 2016 combined. New anchor investors have also emerged.
Further industry consolidation remains likely and the full impact of mega-alliances remains yet to be fully understood. Lessors are dealing with a more concentrated customer base.
The current container equipment fleet was projected at 38.7 million TEU in 2017 with ownership projected at 53 percent lessor and 47 percent operator. The annual global equipment fleet is expected to reach 50.0 million TEU by 2025.
Refrigerated equipment remains an important sector within the market. Waterborne refrigerated trade continues to expand, the specialized fleet has no prospect for recovery, and the refrigerated container market will expand further.
Technology, blockchain, and a growing requirement for supply chain optimization and visibility will be demanded by BCOs; ocean carriers, logistics companies, and those that serve the broader industry will need to determine what role they play.