8 Main Factors that Affect Used Shipping Containers Costs
Before beginning to understand the price factors for used shipping containers, you should know whether you need a used or a new one. When you are unsure about buying a used container or going ahead with a new one, you will end up investing in the wrong resource.
1. Obviously, the Price
When you are running short of budget, you would, of course, want to cut down the extra cost that comes with buying a shipping container that is brand new.
However, this is not the most unambiguous aspect of all the factors affecting shipping costs. By buying a used container, you will save money. But, such a choice may affect the period you can use the shipping container without repair or replacement. It is not always possible to assess the condition of this unit before buying. So, in the long run, buying a new shipping container can be an even more profitable investment.
2. The Usage
Depending on what you need the shipping container for, you should be able to pick the right one. For instance, if you want to customize the container as per your requirement, use it less frequently, or do not want to add branding, then a used storage container is the one you need.
Now, when you know that you want to buy a used shipping container, let’s know what factors affect the price of a used storage container. Hugely, the pricing of a used container is affected by factors like the size of the container, its condition or age, location, the delivery cost, and the global market conditions.
This is probably the most significant cost factor for used shipping containers. When you are opting to buy a used container, you will find two standard size options – 20ft and 40ft. The standard 20ft and 40ft containers are 8ft wide and approximately 8.6ft tall. If you are looking for a little extra headspace or have a different size need, you can opt for 45ft standard shipping containers, 40ft high cube shipping containers, 40ft open top shipping containers, or just have it customized. A customized used shipping container will cost you the base price of that container, plus extra for each added modification. A high cube container adds an extra foot to the existing height of a container, if the container is 8.6ft tall, a high cube container will make it 9.6ft. Either way, the supplier will charge you extra for that extra headroom. Ideally, an upgrade of your standard size container to a high cube container is likely to cost you anything between $200 to $300.
4. Transported Cargo
In addition, there are various types of containers. Open top, refrigeration, and other options can cost you more. Before making your choice, it is imperative to understand what types of cargo you will be transporting. For perishable goods such as fruits, only refrigerated containers are suitable. In addition, these modifications can also be added to regular containers. It is worth considering this important aspect of the factors that affect shipping container costs.
5. Condition and Age
The condition of a used container decides its grade and impacts the shipping container cost. There are four standard grades of an operational container.
I – ‘One-trip’ or nearly new containers (IICL) are only one-time used shipping containers.
II – Cargo-worthy (CWO) are containers with no defects and are worthy of being used for international shipping.
III – Wind and watertight (WWT) containers only guarantee no passage of wind or water. These containers are generally used for storage, as they aren’t safe enough for transportation.
IV – As-is container with almost no guarantee and can be functional only if you can repair it yourself.
The price of a used container is directly proportional to its quality or grade. The higher the quality, the more you are going to pay. When determining the used container’s age, the best is to know how many times the container was used for shipping. You know the container will naturally cost you more if it was used fewer times and is in better condition.
6. Delivery Fee
Often, many businesses forget to consider this factor, but it equally impacts the shipping container price. If you find a supplier that provides you with comparatively cheaper rates than others but isn’t locally available or near to the location of your choice or port, consider your options. You might end up paying a container delivery charge that comes up to more than the actual cost of your container. Before you buy a shipping container, it is important to know how your supplier charges the delivery fee, whether it quotes you a flat fee for a limited distance or the shipping container cost includes the delivery fee. The latter is less likely to happen, so it’s always better to clarify whether your container supplier charges extra for waiting (at the location when you are preparing the site for delivery), limited space at the delivery location, or running up through rough roads.
7. Global Market Conditions
This is the most uncertain of all the factors affecting shipping price. The global marketplace can’t always be predicted, as the trends and market conditions are dynamic. Such unpredictable conditions also impact the shipping container price. To cite a recent example, we know how the COVID-19 situation has hit the global market. Industries and businesses were forced to halt, resulting in less production or manufacturing and stagnant cash flow in the market. Fluctuation in supply and demand of containers, political conditions affecting trade, and a rise in the price of steel all impact the storage container cost and should be considered before you buy a shipping container.
8. High Season
In shipping, as in other industries, there are high seasons. If you buy a container at this time, its cost may increase. It applies to used, new, and even rental containers. This period does not last long. It mainly starts in July, when cargo deliveries reach their peak. This season ends closer to December. The cost of shipping a container increases along with the charter rate. It is the last of the vital cost factors for used shipping containers.
Choose Pelican Containers for the Best Prices
Estimating shipping container or storage container prices is relatively easier when you consider these factors. The bottom line is to have a trusted supplier that ensures the quality of the container and offers you attractive pricing, just like Pelican Containers!
In our catalog, you will find the widest range of options. We have used and new shipping containers that can be ordered at the best prices right now. Our manager will gladly answer all your questions, so contact us anytime! With Pelican Containers, any price factors for used shipping containers will practically not affect your purchase!
What can impact the cost of shipping containers?
In our article, you will find all the possible factors that affect the price of used shipping containers. The main ones are age, purchase season, modifications, and size.
How can the cost of used shipping containers be reduced?
To do this, you need to pick the right seller! Pelican Containers will gladly help you find any shipping options at the best possible prices!
Why does the price of sea containers depend on so many factors?
The thing is that even minor changes in the maritime industry can affect the cost. Factors that affect the price of shipping containers may depend on the cost of chartering, the amount of cargo transported in the world, and the demand for sea containers.