700,000 new containers to hit the waves

700,000 new containers to hit the waves

US-based container lessor CAI International has announced a $1.35bn investment which will see 700,000 new containers hit the sea.

This initiative is in response to an anticipated increase in demand due to the shortage which has resulted from the volatile conditions across the Red Sea and Suez Canal.

Interestingly, while container prices surged in the early part of the Red Sea crisis, they have since corrected as the peak season ended, while typhoons in East Asia had slowed container operations in key Chinese ports.

This has seen prices fall by 25% year on year, from $3,012 in September 2023 to $2,525 last month, after peaking this year at $2,603 in July. It is estimated that 5.79 million teu of containers will be manufactured this year, the second-highest for output as manufacturers have all reported rising orders in response to the Red Sea crisis.

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