Shipping containers are classified into different categories depending on their condition and size; therefore, they also have different prices. The cost of shipping containers can also fluctuate based on market conditions from time to time. Nonetheless, customers want to understand, and with good reason, what factors influence these costs.
The pricing of commodities dramatically influences the costs of containers. Let's take a closer look at a few of them.
Raw Materials
The primary material used to manufacture shipping containers is CORTEN steel. This type of steel provides containers with their anti-rust properties and durability. Therefore, fluctuations in the price of steel as a commodity will ultimately affect how new and used containers sell in the world market. As steel has never been as expensive as it is today, it is, accordingly, a significant factor in the increase in the price of shipping containers today.
Now that we've established that the price of commodities can influence the cost of shipping containers, let's see how the currency price also comes into play.
Price Value in USD
The price of commodities is fixed in the world market at USD rate. As containers are bought globally in USD and sold locally in other countries, pricing will be heavily influenced by the relative strength of the USD against other currencies.
Since the currency has fluctuated widely over the past 18 months, this has significantly impacted the local container price.
Once steel and the USD are taken into account, another major influence on the price of containers is that of global supply and demand.
Supply and Demand
Many customers mistakenly believe that shipping containers are over-stocked globally. In 2016, there was a shortage of containers in the market as shipping companies did not invest in new fleets and were content to use the stock they already had. This has resulted in a shortage of used containers available for sale in local markets. As the demand for the equipment is high and the supply insufficient, prices go up.
These factors can strongly influence the container market and be the main reason for the increase and/or decrease in their price from month to month. However, there are also microeconomic factors that may come into play in this regard.
Size and Condition
Naturally, a new shipping container costs more than a used one. In addition, larger and more specialized containers such as reefers and drop-platform containers are manufactured in specialized facilities and smaller quantities, which contributes to increasing the cost.
Delivery
A significant portion of the cost of any container is attributable to its transportation to your location. Many of our customers are far from our facilities, and most of them do not have forklifts or a container cart or crane to unload them. This means that we have to use specialized flatbed trucks to transport and unload the containers on the scene.
Are Shipping Containers Worth The Cost?
While purchasing a shipping container may seem like an expense to some, it is actually a rather affordable investment. These containers are constructed in such a way that they can easily be restored, renovated, and transformed into useful applications. They can even be transferred and stacked on-site without having to worry about the weight or space of their original shipping containers. Knowing that you can use your shipping container with so many advantages, you are essentially saving yourself on the burdensome costs comparing to building structures from scratch.
Would you like to know more about your options in shipping container shelter applications? Visit us today and contact our team of custom-made shelter specialists!
