Drewry: Box prices nearly double as peak season shortage looms once more

A LACK on Chinese workers to man container factories in southern China is blamed for this year`s expected peak season container shortage, which is not anticipated to be as acute as last year`s, according to London shipping consultant Drewry.

The two main Chinese container makers are restricted half of their two-shift production capacity because of an inability to rehire workers who returned to their inland homes after the 2009 lay offs.


"If capacity is more tightly controlled by the container manufacturing sector than in the past, it will likely result in higher new container prices", said Drewry analyst Andrew Foxcroft.


Mfr Foxcroft`s report, issued by Drewry Maritime Research, said that while production has increased, container prices have nearly doubled in the last two years with prices rising to more than US$3,000 per TEU.


At the end of 2010, the replacement value of the global fleet of containers exceeded $90 billion for the first time, reported Newark`s Journal of Commerce, citing the report, "Container Census - Annual Survey and Forecast of Global Container Units".