Cleveland Containers, Author at Global Trade Magazine

Container prices have eased slightly, but UK demand is rising. Orders for new one-trip containers have tripled since Q1, as companies try to stay ahead of rising freight costs and potential delays.

Red Sea diversions are still adding time and cost. In the Strait of Hormuz, tensions are affecting oil prices and shipping activity. These global issues are now starting to influence UK supply.

Here, we’ll look at what that could mean for availability, pricing, and procurement decisions in the months ahead.

Longer wait times for stock

Some carriers are now quoting up to £232 per 20ft unit to reposition empty containers into the UK, a cost they previously absorbed. It’s part of a wider shift: global volumes might be softening, but UK delivery, depot space, and timing pressures are pushing buyers to act early.

That’s especially true in time-critical sectors like construction, infrastructure, and retail, where the risk of delay outweighs the potential savings from holding off.

“A few years ago, buyers could afford to wait for prices to settle,” says Andrew Thompson. Chief Executive Officer at Cleveland Containers. “Now, they’re planning further ahead to make sure stock arrives when it’s needed, without extra surcharges or hold-ups.”

Availability is no longer guaranteed just because demand is lower overall. Preferred formats, such as new 20fts or high cubes, are getting booked out faster, and once delivery windows tighten, even small changes in availability or spec can cause real disruption.

Rising production costs

Global freight rates have eased, but container prices aren’t following. That’s because the real pressure is now happening further upstream, where production costs are climbing.

Key materials like steel, marine plywood, and hardware fittings have all gone up over the past quarter. Chinese and Southeast Asian manufacturers are already pricing these increases into forward orders for Q3 and Q4.

Steel is the biggest factor, as prices for hot-rolled coil, the base material used in container walls and frames, are up year-on-year and remain volatile due to energy costs and regional supply constraints. Plywood used for container flooring has also jumped, as export restrictions limit supply.

For UK buyers, this means current factory quotes are already 8-12% higher than last year, and that’s before port charges, rerouting costs, or warehousing are added.

“We’re seeing the impact start at the factory,” says Thompson. “Costs are up on new builds, and that’s now feeding through to used units too. It’s not freight driving prices this time, it’s what it costs to produce the container in the first place.”

Geopolitics

Tensions in the Strait of Hormuz are disrupting main shipping routes, affecting oil prices. Frontline’s suspension of freight contracts in the region shows how seriously carriers are treating the risk.

China remains a major importer of Iranian oil, so any disruption affects energy costs for manufacturers, especially for steel, paint, and plywood. That’s already feeding into container pricing.

“Oil volatility is showing up in supplier quotes,” says Thompson. “It’s not just freight, anything with an energy cost is going up.”

Red Sea diversions continue, but the bigger concern is how quickly these pressures spread. As with the 2021 Suez blockage, local disruption can have a global impact.

What UK Buyers should be watching now

UK container supply held steady through early 2025, but that’s already changing. Forward orders for one-trip 20fts have jumped, and depot turnover is accelerating. Stock is still available, but the units buyers want most, such as newbuilds, high-cubes, and CSC-certified containers, are booking out earlier and moving faster.

Pricing pressure is coming from both ends. Factory quotes are rising due to raw material costs and energy volatility, while rerouting and port delays continue to feed into landed prices. That’s pushing more buyers to act early, especially in sectors where timing and spec can’t be compromised.

Leasing is also trending up, particularly on projects with uncertain timeframes or tight budgets. But even here, availability is narrowing. For used stock, rising newbuild costs are quietly lifting replacement value, and that’s already starting to show in pricing.

What matters now is how these pressures interact. A shift in oil prices, a change in freight routing, or even a regional supply gap can push up costs quickly. And most buyers won’t feel it until the quoting stage, when timelines are fixed and flexibility is gone.

If you’re waiting for prices to drop or supply to catch up, you may already be behind the curve. Decisions made now, on spec, timing, or procurement route, will determine how exposed your business is heading into Q4.

One-third of the UK’s biggest companies have pledged to nullify their contribution to carbon emissions by 2050, with more and more businesses looking to implement sustainability strategies to lower their environmental impact.

As well as keeping their carbon footprint in check, companies across all sectors are evaluating ways to balance eco-conscious practices and business finances. In light of the current economic situation, organizations are starting to reframe sustainability as a long-term plan for cost-efficiency.

From 2022 to 2023, there has been a 6.5% increase in companies investing in greener initiatives to cut expenses. Considering the volatile times we live in, it is fair to predict that this trend is likely to persist throughout 2024.

So, how are sectors across the UK tackling sustainability to drive things forward? Cleveland Containers, one of the country’s leading suppliers of shipping containers, looks at the positive impact of sustainable plans and strategies on operational costs.

Self-storage sector

In the self-storage industry, there are plenty of opportunities for businesses to minimize their impact on their surroundings, including embracing sustainable building strategies.

Andrew Thompson, Chief Executive Officer at Cleveland Group, said: “Using shipping containers, whether it’s 10ft or 20ft containers, as storage spaces for your customers is a great way to hit your business’ sustainability and financial targets.

“In fact, adopting shipping containers – especially used or second-hand options – reduces the need for new steel production and material extraction. Likewise, shipping containers allow for a modular building system, meaning you can expand or reconfigure as needed without significant investments.”

What’s more, another trick to improve sustainability levels at a favorable cost is to install LED or sensor-based lighting across the building. Switching standard bulbs with LED alternatives can save you up to £14 per bulb per year while also having a kinder impact on the environment.

Manufacturing

In 2024, the manufacturing industry is likely to become smarter and more digitalized.

As AI technology continues to develop at a fast pace, manufacturing businesses can make the most of these innovative tools to improve efficiency and productivity.

For example, having preventative technology in place that allows you to monitor the health and performance of your machinery can limit the risk of downtime and costly repairs. It can also help you monitor its overall conditions in real time, meaning you can check whether your equipment is performing at its best.

Another way in which manufacturing businesses can become more eco-friendly is by prioritizing the use of recycled materials in production as opposed to virgin raw materials.

As well as being more cost-effective to access, recycled or bio-based materials have a lower environmental impact, helping to promote a circular economy that aligns with the sector’s ESG strategies. So, on top of simply repurposing their own production waste, manufacturers can also explore how to create new products from recycled materials.

Construction

The UK construction sector is responsible for 18% of large particle pollution in the country.

This is why more and more businesses are striving to shift the trend in 2024, with more than 80% of material suppliers and construction companies putting decarbonization at the top of their priority list.

One way to achieve this is by focusing more on transport and logistics. Construction firms rely heavily on transport to carry materials to their site, which can account for a significant proportion of a business’s emissions.

To reduce their impact, companies within the sector can make a habit of sourcing materials locally or using consolidation centers, as this minimizes the number of long journeys required to get hold of whatever they need.

Additionally, construction workers can utilize renewable energy sources on-site (i.e., solar power, wind power, etc.) and cut consumption through water management systems, including rainwater harvesting and greywater reuse.

And rather than build site offices from scratch, they can opt for modified shipping containers or portable site accommodation units that can be fitted and assembled where and when needed, both saving money and conserving resources.

Agriculture

70% of the UK’s land is farmed, with agriculture playing a crucial role in helping keep the nation healthy and well-fed. However, it is also important for the sector to carry out their operations without degrading their surroundings.

In 2024, technology and AI can help farmers look after their crops in an eco-conscious fashion, such as using silent drones to replace crop-dusting planes and reduce noise pollution. Drones can also be adopted to spot problems within a field, from pests to diseases, so that growers can act before they lose all of their harvest and damage the soil irreparably.

Thanks to technology, crop watering will become an increasingly sustainable practice, too. With the help of innovative tools and real-time data, farmers can have better control over how much water is used to prevent unnecessary consumption.

Vertical farming is likely to become a more popular solution as well. Among many different eco-friendly benefits, this agricultural trend – in which the UK is leading the way – requires far less land compared to traditional farms. This means more food can be grown in less space, and products can thrive with minimal, invasive intervention outside of routine maintenance. When it comes to vertical farming, shipping containers can be a handy solution, allowing farms to be flexible and scale effectively by adding more units as needed.

With sustainability sitting at the top of companies’ priority list, many different sectors are finding cost-effective ways to operate while keeping the wellbeing of the planet in mind. So, what are businesses in your industry doing to look after the environment and maintain a healthy cash flow?

Pressure Points: How Geopolitical Tension and Economic Flux Are Reshaping the Global Shipping Container Market