Posts Tagged ‘cargo containers’
Have you ever wondered why shipping container prices fluctuate? How can you tell you are getting value out of your purchase? We often have customers who purchase a shipping container and wonder why when they come back to purchase again the price has changed. There are many factors that drive shipping container costs. Some of which you can control with your purchasing decision and some cannot.
Quality – The Quality of the container is a big factor. Shipping Containers range in age from nearly new or one trip containers, to 20 year old used shipping containers that are no longer suitable for ocean going shipping transportation. Typically age and quality go hand in hand but that is not always the case. This is a factor you can control by asking your sales rep what condition the container is in. The container industry has come up with some standards that will help you make a value decision. We have written a separate document that will detail this. Feel free to visit this document: Container Conditions Explained
Location – One of the biggest factors in container pricing is location. Some areas depending on the market conditions always have more containers available. These are known in the shipping industry as “surplus markets” Bargains can be had in surplus markets where competition and ongoing storage costs will drive the price down. What factors drive the pricing? Some regions have strong export demand vs import demand so more containers are needed for export. These are typically industrial areas with concentrated population and high import distribution demand. Geographically location for surplus markets are typically coastal or near an inland connected waterway. You will find drastic fluctuation in pricing in these areas based on time of year and economic market conditions. The opposite location factor is in “deficit markets” In these areas export demand is high and import demand is low. These markets geographically are typically non coastal, inland with no connecting waterways.
Demand in the Shipping Industry – Being that your container was not made to be sold to you for storage you need to understand that the market conditions related to this intended use – Shipping will adjust the pricing you will pay not your market condition setting the pricing. This aspect is by far the #1 factor that will influence pricing with other factors being held constant.
Global economic factors will determine how many containers the shipping lines need to distribute trade throughout the world. If fewer containers are needed the shipping lines will off hire leased units to the open market and the leasing companies will sell them and will reduce the size of their owned fleets rather than paying storage on the idle shipping containers.
Container Factory Pricing – The price of a new shipping containers drives the used market as well. Factory pricing will fluctuate based on steel replacement cost at the factory, labor costs, and demand. Increased demand for factory orders is typically influenced by trade growth, and replacement costs for infleet containers.
Maritime Shipping Factors – The cost of oil will influence how fast the ships will travel affecting how many containers are needed to produce the trade produced by the global economics efficiently. The size of the container ships has also influenced how many containers are needed to fill the slots required to drive these large vessels. Ship size has increased from 2,950 twenty foot equivalent (TEUs) to an astonishing 22,000 TEUs in 2018.
Volume – LIke most products you can get a better deal by buying in volume. You will pay less if you buy in quantity. The quantity discount is typically $50-$250 based on the quantities you are purchasing in. Make sure to mention up front if you are looking for multiple quantities, this factor will affect your pricing.
Hopefully this information will help you understand the factors around container costs. If you have any questions please contact us at 800-386-2456.
10. PUMA City, Shipping Container Store – LOT-EK
The Puma container store features 24 containers, is three stories high, and makes up 11,000-square-feet. This project, known as Puma City, definitely deserves a spot in the top ten. Designed and constructed by the NYC/Napoli based office LOT-EK, the Puma container store was created by a practice that has been known for their projects involving used shipping containers. Though it was created back in September 2008, this project opened up new ideas to shipping container companies around the globe. The whole concept of Puma City was to make it eco-friendly while making it mobile; this shipping container structure, made of 24 refurbished containers are totally dismountable, making it mobile and being able to be shipped to any location needed. With three floors including two decks and a bar/lounge with lower lighting completes the whole look of Puma City being given a bigger feel of durability than just a prefabricated structure that can be easily folded up and moved around.
9. Starbucks: Reclamation Drive-Thru
With a LEED-certification in hand with stores all across the United States, Starbucks Coffee knew they had to do something green soon to put their new certification into use. Right outside their headquarters in Seattle is a shipping container yard, which actually inspired Starbucks to start what they call “Reclamation Drive-Thru”. Starbucks had already been using shipping containers for a while to import tea and coffee from around the world. However, many of the like-new shipping containers that were used to import Starbucks’ materials are forced into scrap yards like the one outside the Starbucks Headquarters. The Reclamation Drive-Thru project was inspired by this concept of keeping these shipping containers already throughout Starbucks’s supply chain and out of a one-time use waste stream. The innovative structure consists of a 450-square-foot drive-thru and walk-up styled store made with refurbished shipping containers. This Starbucks store is made up four refurbished shipping containers, though one of them is a 20-foot container used for garbage, storage and recycling.
8. Caterpillar House – Santiago, Chile
On a hillside overlooking the Andes Mountains just outside Chile’s capital city, Santiago resides a house made out of shipping containers known as the Caterpillar House. This property measures at about 3,800-square-feet with a grand total of 12 refurbished shipping containers (five 40-foot units and six 20-foot units) and then an open top container used as a swimming pool. Some of the containers are at an angle because they wanted the shipping container structure to flow with the scenery around it as much as possible, so the home actually slopes against the hillside.
Adding on to the endless features to this eco-friendly house are the multiple windows, skylights, and adjoining pieces put together with the containers. Instead of an expensive, energy-sucking, air conditioning unit, the Caterpillar House features passive cooling which is distinctively made to make full used of the natural cool air that comes down the mountains—which will eventually pass through all the windows, doors and ventilated façade of the Caterpillar House. Given the size, location, and features of this house, the Caterpillar House uses the most model level of home energy requirements to where not much money is being spent, but being saved.
7. Hurley H20 Campaign – 2012 US Open of Surfing
The US Open of Surfing is a surf competition that happens every year at the end of July in Huntington Beach, California. Shipping Containers are usually a prime option to use for these types of events because of their design, durability, and mobility. Nike sponsored the 2012 US Open and Hurley, being owned by Nike, launched their H20 clean water campaign. For this, a booth was designed for the event to inspire water activism and push for cleaner water. Again, refurbished shipping containers were used to create this booth, which was used as a water-filling station where thousands of fans of the US Open could come up and refill their reusable water bottles. The company IPME (Innovations, Projects, Management & Equipment) gave the refurbished used shipping container that was used in the making of the Hurley water station. The Hurley H20 booth was also used in the Hurley Pro in late September of that year.
6. Shipping Container Hotel
Although currently on a winter break, “Sleeping Around” is group of 20-foot shipping containers turned into luxury hotel rooms. The hotel boasts its portability, explaining on its website that although it’s currently in Antwerp, Belgium, it can and will go anywhere. This movability is paired with an ecological essence—it’s a hotel made of recycled containers with “ecologically responsible” materials inside. These qualities may attract many eager guests, but “Sleeping Around” is an exclusive activity; there are only four hotel rooms, a breakfast/lounge container, and a sauna container, making it the ultimate cool container setup. After the pop-up hotel’s winter break, the rooms are available for booking on Sleeping Around’s website (http://www.sleepingaround.eu).
Photo from http://www.sleepingaround.eu
5. Illy Pop-up House
Italian coffee-makers Illy Café created a five-room home recently—that opens up like a lily and then folds back into its compact size. The core material? A shipping container. Illy Café unveiled this pop-up house in 2007 to promote its espresso-making method of coffee packaged in small capsules, while displaying sustainability by using a recycled shipping container. The attractively cohesive design of this shipping container structure, in conjunction with its unique portability, ignited significant buzz upon the pop-up shop’s 2007 debut.
Photos from illy.com
Whether you are looking for a fully-functioning living space or just an area to lounge, Ecopods can provide an eco-friendly pod to get the job done. It operates with an 80-watt solar panel and therefore saves you from the rising prices of electricity. Like all other cool container-made structures, Ecopods are completely portable. The company caters to customers seeking both residential and commercial space.
Photo from ecopods.ca
3. Cove Park Cubes
A very green (literally) artist retreat met the sustainability of a shipping container structure in western Scotland’s Cove Park, a year-round retreat for artists to gain inspiration. The artists can choose to live in pods formerly used on BBC’s “Castaway 2000” TV show or cubes converted from freight containers. The container cubes double as living and working spaces for the artists, including decked balconies that overlook the stunning Loch Long Sea.
Photo from covepark.org
2. BBC Broadcasting Studios
BBC has built two studios on top of 18 shipping containers in London, a traditional building perched on a three-story container structure. BBC was keen to build this new structure with environmental impact in mind, hiring Container City for the task. Given the global prominence of BBC for both entertainment and journalism, the company’s choice of shipping containers for one of their major buildings brings new international light to the architectural concept.
Photos from containercity.com
Aiming to provide a gateway to Ariel Shannon National Park of Israel, this colorful construction will put together recycled steel shipping containers to form a tunnel-style bridge. The minds behind the plan, Yoav Messer Architects, vowed to do all of the construction off-site so as to avoid damaging the natural beauty of the site. “From a conglomeration of waste to a lifeline,” says the architect group on their website about the bridge. The bridge will accommodate pedestrians, bikers, and shuttle vehicles.
Photo from http://www.messer-architects.co.il