Average leasing rates for Triton International‘s dry container product line increased 6.1% in 2021 compared to 2020.
Triton International is the world’s largest intermodal container lessor with a total fleet of 4.3 million containers and chassis at the end of 2021.
The increase in its average dry container leasing rates was primarily due to the addition of new containers with leasing rates well above the average rates in its leasing portfolio.
Also, new container prices and market leasing rates rose sharply in 2021 due to increased container demand and limited container availability, with the price of a new 20-foot dry container reaching nearly $3,900 during year.
Dry container
Although new container prices have recently declined in the $3,400 range, they remain historically high and market leasing rates remain above average for Triton’s portfolio.
On the other hand, average leasing rates for the company’s reefer container product line decreased 4.2% in 2021 compared to 2020.
In 2021, Triton completed a large reefer container lease extension transaction that reduced lease rates on expired leases in exchange for a lease extension covering the remaining useful life of the equipment.
The company has also experienced large differences in lease rates for older reefer containers compared to rates for new equipment, and expects its average reefer container lease rates to continue to trend downward.
Lastly, average specialty container lease rates were down 0.8% in 2021 compared to 2020, primarily due to a lease extension transaction for a large number of specialty containers completed in 2021.
Intermodal containers provide a secure and cost-effective method of transporting raw materials, component parts and finished goods because they can be used in multiple modes of transport.
By making it possible to move cargo from a point of origin to a final destination without repeated unpacking and repacking, containers reduce freight and labor costs.
In addition, automated handling of containers permits faster loading and unloading of vessels, more efficient utilization of transportation equipment and reduced transit time.
The protection provided by sealed containers also reduces cargo damage and the loss and theft of goods during shipment.
