Domestic Container Shortage?
With 53’ domestic container movements rising over 16% y/y in May, YTD volume now stands 14.3% higher than the same period in 2011. 2011 domestic container loadings were 10% higher than 2010; so, if the current trend holds, we will be looking at a total increase in excess of 25% in domestic container loadings over the two-year period.
Although there was a large amount of equipment added in 2011, we don’t think it was sufficient on its own to support such an increase. 2012 build plans remain unclear but appear, to date, to be very modest. The signs point toward tightness in the equipment supply, all else being equal. Exacerbating the situation will be the pressure exerted if the East Coast port labor situation is not settled.
The additional transloading demand off the west coast will put substantial upward pressure on the demand for containers. Expect to see a rebound in 53’ trailer demand if the situation persists.