Market Outlook & Buying Strategy
Week of September 8–12, 2025
Freight Rates & Demand
Transpacific spot freight rates have eased into early September, reflecting weak demand and sustained oversupply. Asia–US rates have fallen sharply since June, with West Coast routes down nearly 60% and East Coast routes down about 45%. This downward pressure keeps container prices stable, providing buyers with a favorable entry point.
Asia Supply Side
China’s manufacturing PMI has risen above 50, signaling stabilization in factory activity. Container manufacturers, led by large OEMs such as CIMC, continue to operate at high capacity with multi-million TEU annual output. As a result, new container availability remains steady, limiting any significant upward price pressure on used or off-hired units.
North America Macro Environment
The U.S. economy presents a mixed but stable picture: services are expanding (ISM Services at 52), while manufacturing remains in mild contraction (ISM Manufacturing at 48.7). In Canada, GDP growth is projected at around 1.8% in 2025, supported by retail and logistics. Together, these factors suggest a consistent baseline demand for storage and project cargo equipment.
Trade Policy & Tariffs
Trade uncertainty continues, with U.S. protectionist measures and tariff risks shaping market sentiment. Buyers face an unpredictable regulatory backdrop, reinforcing the logic of opportunistic purchases while prices remain soft and equipment is widely available.
Geopolitical Risks
Security incidents in the Red Sea persist, keeping risk premiums elevated despite partial resumption of Suez Canal traffic. Meanwhile, improved water levels at the Panama Canal have eased transit constraints, especially for East and Gulf Coast services. Overall, logistics stability remains fragile, and sudden shocks could quickly alter container availability and pricing.
Market Implications
With global oversupply and subdued demand, container prices are expected to remain stable in the near term. However, geopolitical and policy-related risks can trigger rapid cost escalations. Financing conditions are turning more favorable, as expected U.S. rate cuts will reduce carrying costs, making forward procurement even more attractive.
Buyer’s Strategy – Recommended Actions
Denver: Extremely limited supply (9 × 40’HC at $2,600). Secure early to cover inland Rockies demand.
Long Beach/LAX: Deepest pool of units; best value on 20’GP ($1,100) and 40’HC ($1,350) for immediate use.
Oakland/SFO: Smaller but strategic stock; 40’GP and 45’HC well-suited for Bay Area construction and storage.
Savannah: Competitive pricing (40’GP at $1,150) ideal for Southeast retail and distribution build-outs.
Portfolio Mix: Combine CW units for operational use with As-Is units for cost-effective static storage.
Risk Management: Maintain 2–4 weeks of buffer stock, especially in West Coast depots, to hedge against sudden volatility.
Conclusion
This week offers buyers a favorable window to secure equipment at stable prices. Supply conditions remain strong, financing is turning supportive, and geopolitical risks are unresolved. Acting now in key hubs—Denver, Long Beach, Oakland, and Savannah—ensures cost efficiency and safeguards against unexpected disruptions in the months ahead.
* Container Sales Inventory as of Monday, September 8, 2025.
