SFA Research Corner: Container Lease ABS – A Port in the Global Shipping Storm
Provided by Structured Finance Association
As the broader shipping industry continues to be buffeted by supply chain complexities, container lease ABS have been buoyed by the rebound in global trade as demand for shipping containers has kept lease rates at all-time highs. In 2020, the ABS market saw 12 container lease ABS transactions totaling $7.2 billion, a record for the sector. And with $5.2 billion issued so far this year, 2021 is on track for another robust year. Even taking into account ESG issues like de-carbonization commitments and requirements to retool refrigerated containers with non-HFCs, freight transport (90% of which travels on ships in containers) has the healthy expectation to more than double by 2050, which bodes well for container ABS going forward.