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How SMS Maintains Supply and Fair Prices Through the Global Shipping Container Shortage

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Despite the many challenges created by the global shipping container shortage, we’re working extra hard to ensure you always have access to the high-quality shipping containers you need, when you need them, at a fair price.

The global shortage has made it harder and more expensive to buy shipping containers for uses outside of shipping, such as construction offices, commercial storage, residential moving or custom containers.

As a result, other container companies are running into availability issues, leading to long wait times and higher prices. However, Southwest Mobile Storage always strives to keep our container inventory stocked. Our Founder and President Damon Jacobson purchases shipping containers in bulk to maintain a strong fleet, so we can continue to serve our customers’ needs quickly and affordably.

“When we see opportunities to obtain more containers, we get them,” the director of our 90,000 sq ft fabrication facility and staff of more than 40 full-time fabrication experts said. “We had the foresight of what was coming and worked hard to get enough units to prepare and keep taking care of our customers.”

Containers aren’t the only product we stock up on proactively. In response to a global building material shortage, we also stock building materials in bulk to limit the effects of the shortages.

As the world continues to face domino effects from the pandemic, global market prices of building materials and ISO containers can change overnight. So, our fabrication facility works hard to keep material costs as affordable as possible by finding alternate vendors and stocking up as efficiently as it can.

For example, bulking up on items such as welding consumables, abrasives, building materials like steel, HVAC units, and electrical and plumbing parts ensures we’re able to complete modifications on time and within your budget.

While some container companies have had to close down or dramatically increase prices, we’re able to continue to take care of our customers because we stocked up so early.

Shipping rates for containers have quadrupled since the start of the pandemic, and the price of new shipping containers in China, where more than 90% of the world’s containers are made, has increased by 64%. The high prices combined with long delays along trade routes creates heavy competition for companies trying to increase their container inventories all over the world. Another challenge is the fact that fuel prices have risen 45% over last year, which affects the cost of transporting storage and office containers to and from their destinations.

These are some of the factors companies have to take into consideration when pricing shipping container rental, sales and modification for commercial, construction and residential use.

The price and availability of our shipping containers and modifications varies by location, depending on a variety of factors. Since it’s too challenging to obtain more containers to be able to sell them right away, we’ve been converting our sales inventory into rental storage and office containers to ensure you’re able to get the units you need quickly and affordably.

As more supply chain disruptions occur, like ports and countries around the world shutting down in response to rising COVID cases, the limited availability and high prices of shipping containers will go on.

But SMS is doing everything we can to keep rates comparatively low, inventory stocked and turnaround time fast. We’re stocking up on containers and materials, converting our sales fleet into rental containers and offering a variety of sizes, so you’ll be able to find the units you need.

Other well-known container rental companies are more than doubling rental rates because their inventory is limited while demand is high, and others are struggling to stay afloat or have gone out of business during the shortage.

While experts predict these circumstances will continue into next year, we’re prepared to continue to have your back by having quality containers you need, when you need them, at the best value. Let us help you today.

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