The Container Market
The container shipping industry stands as one of the largest, most complex, yet highly standardized sectors in the world. Each container’s operation adheres to a very similar set of rules all over the world, making it a model of efficiency and reliability.
In the shipping industry, every move, location, and state of each container is digitally documented and timestamped using a uniform, global set of standards and transmitted through EDI to the relevant parties.
This wealth of standardized and digitally available data has propelled the container industry to the forefront as a prime candidate for cutting-edge technologies such as blockchain and cryptography. This technology brings value not only to the shipping industry but also to other sectors such as the insurance and forwarding industry.
The top 20 container shipping and leasing companies are the key players in this industry, collectively owning, operating, and controlling nearly 90% of all containers worldwide. While estimating the precise number of shipping containers in service today is challenging, we can confidently state that these top 20 container owners possess approximately 50 million TEUs (twenty-foot equivalent units) in total. The value of these containers is estimated to exceed a staggering $100 billion USD.
With such a vast presence and importance in global trade, the container shipping industry continuously embraces innovation and emerging technologies to enhance its operations. The industry’s commitment to standardized practices and digital documentation has laid the foundation for exploring the potential of crypto technology. The integration of crypto and blockchain solutions can revolutionize container ownership, transactions, and logistics, further streamlining processes, improving security, and creating new opportunities for financing and investment.
As we navigate the dynamic world of global trade, the container shipping industry remains at the forefront of innovation, leveraging standardized operations, digital advancements, and the potential of crypto technology.
Hoch many Containers exist?
There are around 50 Million container currently worldwide with the number ever increasing. The number of containers are typically given in TEU which means twenty foot equivalent unit. A twenty foot container is the typical standard container that can be seen on vessels, trucks or the railroad. The other most common size of a container is the 40 foot container. A forty foot container counts for 2 TEU.
The Market Structure
There are three main segments in the market of container owners: shipping lines, container leasing companies, and container trading companies, with the latter being by far the smallest. Shipping lines and container leasing companies account for over 95% of the total container ownership globally. The top 20 shipping and leasing companies collectively possess and manage approximately 90% of the global container market.
What does a Container cost?
The container price is extremely volatile and is highly dependent on the steel price and the general, global supply and demand. As a rule of thumb it can be said that a standard twenty foot dry van container cost round about USD 2.400. However while in May 2022 a Unit cost around USD 3.400 in May 2023 you only had to pay USD 1.500 for the same box. A forty foot container is typically calculated with a multiplier of 1.65 of the twenty foot unit. But as mentioned before, new build prices are highly volatile and can change significantly within months.
How many new units are built every year?
Just as the pricing of containers, the global production of new containers varies from year to year depending on factors such as economic conditions, trade volumes, and industry demand. However, as a rough estimate, an average of around 3 to 4 million new containers are produced annually. As mentioned however, these numbers can fluctuate significantly.
The Standardization of the Industry
The container shipping market operates with a high level of standardization worldwide. This is achieved through organizations like the International Institute of Container Lessors (IICL), International Commercial Terms (Incoterms), and adherence to International Organization for Standardization (ISO) norms. The IICL sets guidelines, ensuring quality and maintenance standards are met. Incoterms provide a standardized framework for international trade transactions, defining responsibilities and obligations. ISO norms establish container dimensions, structural requirements, and performance criteria. This ensures compatibility and seamless international transportation across countries and modes. Additionally, digitalization is gaining traction, enabling a digital record of container actions for enhanced transparency and efficiency.
Are Containers Unique?
Allthough Containers are th most standardized industry good and many containers hold the same specifications, each container is has it’s unique prefix and number. The prefix consits of a 4 letter code that is linked ot the company that produced the container. The prefix is followed by a 6 digit number and a check digit. While the number is freely chosen, the check digit is calculated by a mathematical formular calculated from the 6 digit number. The combination of prefix, number and check digit makes every container number unique. This makes a container the perfect match for NFT and blockchain technology.
Type of Containers?
There is a wide variety of container types available, ranging in the hundreds. Among them, the most prevalent and recognizable are known as „dry van containers.“ These are the standard steel boxes that can be commonly observed in various locations. Typically, they come in lengths of 20 or 40 feet. In addition to dry van containers, it’s worth mentioning other notable types such as reefer containers (used for temperature-controlled goods), tank containers (designed for transporting liquids), and open-top containers. However, numerous other container types exist, each serving specific purposes and catering to specialized needs.
Where are Containers built?
China is the dominant player in the manufacturing of standard dry containers, with approximately 95% of all containers being produced in various factories across China. These factories cater to the global demand for containers, supplying shipping lines, leasing companies, and other stakeholders in the container industry worldwide. The country’s expertise and capacity in container production contribute significantly to the international shipping and logistics sector.