Factors affecting price of shipping containers in Kenya
Prices of shipping containers in Kenya are constantly changing which raises the question as to what factors determine the pricing. The price of shipping containers in Kenya is influenced by several key factors, including market conditions, demand, and container specifications. Here are the main factors affecting container prices:
- Condition of the shipping Container
New containers are generally more expensive compared to used shipping containers due to the minimal wear and tear. Used shipping containers in Kenya on the other hand are cheaper but have more rust and dents since they have been used for longer period of time.
- Size of the shipping container
Another factor impacting on the price of shipping containers in Kenya is the size. For instance, 40 Feet shipping containers are more expensive compared to the 20 Feet shipping containers in Kenya. This is because they offer more space for usage.
- Market Demand and Supply of shipping container
Price of shipping containers in Kenya fluctuates from time to time due to the trends in demand and supply of the 20 Feet and 40 Feet units. For instance, during peak import and export season, the demand for the units by shipping lines increases hence increasing the price of containers in Kenya.
- Location and Transportation Costs
Location of the shipping container impacts on price as this determines cost of transportation to the desired location. For instance, price of shipping containers in Nairobi is higher compared to price of containers in Mombasa due to the proximity to port. On the other hand, price of shipping containers in Nairobi is lower than price of containers in Nakuru due to additional transportation cost.
- Customization and Modifications
The cost of modified shipping containers is higher compared to the cost of plain containers due to the additional cost incurred in purchase of material and labor. The price of a shipping container office is also higher than the price of shipping container stalls in Kenya due to the additional cost incurred to insulate the container and ensure that it is always at room temperature.
- Global Shipping Trends
Shipping container prices in Kenya are affected by fluctuations in international shipping costs and global container shortages affect local prices.
- Exchange Rates and Import Duties
The fact that shipping containers in Kenya are mainly imported means that the exchange rate of the Kenyan Shilling (KES) against the US Dollar (USD) affects pricing. In addition, import duties and taxes have an impact on the final cost.