There are several factors that make shipping containers cheap. It depends on several factors like location, condition, and type of container.
While searching for a cheap shipping container, be sure not to be easily tempted by excessively low prices. Many sellers offer low-priced containers, but their quality isn’t guaranteed. Some potential issues include the unit being too old, rusty, or even having visible damage.
It is important to inspect it thoroughly before buying, as you might end up spending more money on repairs.
This article will discuss factors that make shipping containers cheap, and several important aspects you should understand when buying one!
Contents
Factors that Make Shipping Containers Cheap
1. Overproduction
Shipping containers are often mass-produced, especially in countries like China. Global trade imbalances, where more goods are shipped to a country than exported from it, cause many containers to accumulate in certain regions (e.g., the U.S., Europe). This oversupply drives down prices.
2. High Depreciation of Used Containers
Containers lose value quickly after their initial use. Even though they’re still structurally sound, their value drops due to wear, rust, or minor dents. Therefore, used containers (especially one-trippers) are significantly cheaper than new ones, sometimes 50–70% less.
3. Low Manufacturing Costs
Most containers are built in countries with lower labor and production costs. Steel prices, mass production efficiency, and economies of scale help reduce the overall unit cost of a container.
4. Decommissioning from Shipping Fleets
Shipping companies regularly retire containers that no longer meet the latest standards for international shipping, often after just 10-15 years. These decommissioned containers flood the secondary market at reduced prices.
5. Minimal Maintenance Needs
Containers are designed to be rugged and weatherproof. This durability means they require very little upkeep, which reduces the total cost of ownership and keeps resale prices lower.
6. Limited Functionality in Some Regions
In areas where intermodal or freight logistics are less developed, used shipping containers might not be as useful for shipping. This lack of demand for their original purpose leads to lower prices.
7. Repurposing Demand Is Still Niche
While container homes, pop-up shops, and storage units are popular in some areas, this secondary use is still a niche market globally. Limited demand for repurposing prevents container prices from rising much.
When Are They Not Cheap?
Shipping containers are not cheap in certain situations. Events like pandemics, wars, port strikes, or economic surges can cause shortages, driving prices up.
Remote or landlocked delivery locations can also spike the price. If you’re far from a major port or shipping hub, transport costs to deliver the container can be very high, making even a cheap container expensive overall.
Container prices will also rise during high-demand periods such as construction booms, natural disasters, and agricultural harvest seasons, or conditions where people require it the most.
Tips for Buying Cheap Containers to Avoid Being Scammed
Buying a used container can be an economical option for various purposes, from storage to residential modifications. Here are some tips for buying a cheap and safe container:
1. Determine Your Needs
Determine the size of the container you need, such as a 10’, 20’, or 40’ container. Then, choose the appropriate container type, such as a dry container, reefer container, open-top container, open-side container, etc.
Consider whether you need a new or used container. If used, determine its condition, such as whether it is cargo-worthy, wind- and watertight, etc.
2. Find a Trusted Seller
Conduct online and offline research to find a reputable container seller. Visit the container depot in person to see the condition of the container in person.
Tradecorp is a trusted provider of new and used container sales, purchase, rental, and modification services. With years of experience, we have met a variety of client needs.
3. Inspect the Container’s Condition Carefully
Buying a cheap container requires you to thoroughly inspect the container’s physical condition, including the walls, floor, doors, and roof. Look for signs of damage such as rust, holes, dents, or cracks. Some other aspects to consider include:
- Ensure the doors and hinges are functioning properly.
- Check the condition of the container’s seals, hinges, and locks.
- Ensure the container is dry and free of leaks.
- Ensure the container’s structural strength is sound.
4. Request a Certificate of Suitability
If you are purchasing a used container, ensure the seller provides a certificate of suitability (cargoworthiness) proving the container is safe for use.
5. Pay Attention to Additional Costs
Make sure you are aware of additional costs, such as shipping costs, modification fees (if any), and licensing fees.
6. Use a Written Contract
Ensure all agreements are written down in a contract, including the price, container conditions, and delivery schedule.
Conclusion
Looking for quality containers at the best prices? Tradecorp is your trusted solution for your container needs.
We offer various containers, from standard units to modified units, to custom-made containers ready for various uses. We also provide modification and custom shipping container services by adding windows, doors, walls, and roof insulation.
Our experienced staff is ready to help you arrange the shipping of your container to your requested location. Fill out our quote form to buy or rent from us!