Global Reefer Container Leasing Market 2017-2021
About Reefer Container Leasing
Reefers are refrigerated containers that constantly supply air from the bottom of the container to distribute uniform chillness across the container through specific T-shaped decking. These containers are used to carry food and beverage as well as pharmaceutical products. Depending on the size and volume, reefer containers can be 20ft standard and 20ft high cube, 40ft standard and 40ft high cube, and 45ft wide high cube containers. The lessors purchase the reefer containers from container manufacturers and lease it to cargo players or shippers, container fleet management companies, individual goods manufacturers, and other service sector players, at a particular lease rate and lease volume depending upon the size of the containers. The lease rates of the containers also vary with two other factors, the age of the containers and the duration of the lease period.
Technavio’s analysts forecast the global reefer container leasing market to grow at a CAGR of 15.92% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global reefer container leasing market for 2017-2021. To calculate the market size, the report considers the volume of outstanding leased reefer containers in the market in each year of the forecast period.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Reefer Container Leasing Market 2017-2021
Technavio recognizes the following companies as the key players in the global reefer container leasing market: Beacon Intermodal Leasing, CAI International, Seaco, SeaCube Container Leasing, Textainer, and Triton International
Other Prominent Vendors in the market are: CARU Container, China COSCO Shipping, and Touax Container Solutions.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Growing trade in refrigerated goods. The global refrigerated cargo shipment is expected to grow around 4.5%-5.5% annually during the forecast period. Fresh food items including fruits, vegetables, fishery, and meat are the key goods transported via refrigerated cargos. The rise in the demand or rise in the production of these goods will positively impact the growth of the refrigerated cargos and consequently, the reefer container leasing market. North America and Europe are showing high growth in the import of refrigerated goods. For instance, in 2016, Europe held around 25%-27% and North America around 23%-25% shares in the global refrigerated goods import.”
According to the report, one of the major drivers for this market is Rising dominance of leasing players in global reefer container market. In early 2008, it was noted that more than 90% of the investment in the global reefer container market was made by shipping players, and only a minimal percentage of the investment was made by leasing players. After the global recession in 2008, the market scenario had changed because the shipper's fear of investing in assets provoked them to adopt leasing. Hence, leasing players started dominating the global reefer container market. Apart from the economic downturn, there are few other reasons that influenced shippers to lease reefer containers instead of purchasing them.
Further, the report states that one of the major factors hindering the growth of this market is Fluctuations in reefer container prices. The global reefer container price shows a fluctuating growth after the steep decline in 2008-2009. By 2016, the reefer container price hit all-time low price. The low reefer container price should trigger the mass reefer container purchase capacity of the lessors. But, it hasn't increased the reefer container purchasing from reefer container lessors. This is because the low reefer container price indicates the oversupply of reefer containers in the market. The oversupply of reefer containers will provoke the lessors to reduce the lease rate to get a competitive advantage. The reduced lease rate will increase the duration of return on investment by the lessors. The lengthy return on investment cycle of the lessors will affect their liquid cash flow for daily operation.
Beacon Intermodal Leasing, CAI International, Seaco, SeaCube Container Leasing, Textainer, Triton International, CARU Container, China COSCO Shipping, and Touax Container Solutions.
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