Resurgence in international trade coupled with increasing reliance on seaborne trade continue to remain instrumental in pushing the adoption of dry van container worldwide. That said, manufacturers are focusing on implementation of advanced technologies along with sporadic innovations dry van container manufacturing processes in order to enhance the service period of the dry van container along with its efficiency in transportation of bulk products. Moreover, high availability and various advantages of enclosed trailers have triggered the adoption of dry van container as a popular means of transportation.
Understanding different aspects of a dry van container, Fact.MR has compiled various insights pertaining to demand and supply scenario of dry van container in a new research report. According to the report, the dry van container market is projected to expand at a CAGR of 2.8% in terms of value throughout the period of forecast, 2018-2028. Moreover, the report also reveals that the dry van container sales are expected to remain concentrated in the emerging economies of Asia Pacific excluding Japan (APEJ) region, followed by Europe and North America.
Dry Van Container Market: Steel to Bounce Upwards
Steel has been a preferred choice for manufacturing of dry van container, given the various benefits associated with the material. Apart from high durability, steel pricing plays an important role, as it is cheaper as compared to aluminum. This factor pushed its demand as a beneficial material for containers used in transportation or logistics.
Moreover, aluminum, in the recent times has gained significant traction, albeit its use at a low base. High strength, corrosion resistance, magnetic resistance, high elasticity and malleability and low weight has fuelled its demand in the container space. Dry van container made from aluminum is expected to catch steam in the coming years, albeit high cost price associated with this material.
Dry Van Container Market: Tug of War Between Europe and North America
The demand for dry van container in Europe is expected to increase at a significant pace in the coming years on the back of increasing trade activities in the region. With recovery of the EU economy, European markets have shifted their focus towards adoption of new carriers. With respect to freight logistics, Germany is expected to largely contribute to the growth of the dry van container market in Europe, it being ranked first in terms of logistics performance according to World Bank analysis. Moreover, limited trade regulations have favored seaborne trade among Europe and emerging economies in Asia Pacific and Africa. This aspect has actively pushed the growth in sales and demand for dry van container in Europe.
On the other hand, North America is expected to showcase a relatively low adoption of dry van container as compared to Europe. However, significant opportunities lie in this region, particularly in the United States, given its strong shipping line. According to World Shipping Council, containerized shipping sector provides foundation for more than one-third of economic activity in the region. In addition, a recent enforcement – Made in America – has gained substantial momentum, consequently increasing the manufacturing output by 7 percent in 2017 Q4. This coupled with various companies focusing on production enhancement, has triggered growth of the intermodal container leasing sector, which in turn has supported the growth of dry van container market in North America during the period of forecast.
Dry Van Container Market: Rising Seaborne Trade to Pave Growth Opportunities
Stability from an economic standpoint across regions has facilitated favorable environment for international trade. That said, globalization and industrialization are the prime fillips fuelling expansion of seaborne trade. According to ICS (International Chamber of Shipping), seaborne trade accounts for more than 90 percent of the global overseas trade. This has translated into a significant increase in development of large ships with a high container capacity. In response, dry van container manufacturing is expected to further accelerate to cater to the growing demand. This factor remains a key growth determinant for dry van container market in the forthcoming years.
Dry Van Container Market: Dwindling Oil Prices to Trigger Growth
Sharp decline in oil prices on back of changing global scenario is expected to support the growth of the shipping industry, in turn pushing the demand for dry van containers. That said, the production of fuel is expected to increase in the coming years, paving new opportunities of growth for dry van container. For instance, U.S Energy Information Administration (EIA) estimated that the production of fuel is expected to touch 10.7 million barrels per day, the highest production registered in US history. This increased the reliance of manufacturers on shipping industry for transportation of products. As a consequence, declining oil prices coupled with growing shipping industry is expected to fuel the demand for dry van container during the forecast period.