24.7 C
Monday, July 26, 2021
Home News Mitsubishi HC Capital buys CAI International

Mitsubishi HC Capital buys CAI International

US-based container lessors CAI International and Beacon Intermodal Leasing have come under the same ownership, after Japanese leasing group Mitsubishi HC Capital acquired CAI for US$1.1 billion on 18 June.

Mitsubishi HC Capital was formed from the merger of Mitsubishi UFJ Lease & Finance and Hitachi Capital on 1 April. Beacon Intermodal was acquired in 2014 by Mitsubishi UFJ Lease & Finance, marking the company's entry into the container leasing market.

The increased container demand has led Mitsubishi HC Capital to the latest acquisition with the company saying, "Marine transportation is strongly tied between key infrastructure for livelihood and industry activities, indicating that containers used for marine transportation are expected to benefit from stable demands in the leasing market."

The Covid-19 pandemic has driven demand for container shipping as lockdowns drive more consumers to purchase goods through e-commerce and medical supplies are shipped globally, while the slow return of empty containers has exacerbated the situation.

The ratio of leased containers to total global boxes has increased in the past 10 years from 41% in 2009 to 51% in 2019, according to a survey conducted by Drewry, and is continuing to grow steadily.

"The marine container leasing business is expected to bring stable growth as an indispensable infrastructure of global trade, and is envisioned to be a leading force of the logistic business domain in the future," added Mitsubishi HC Capital.

CAI and Beacon Intermodal are the fifth and sixth largest container lessors, boosting fleets of 1.75 million TEU and 1.52 million TEU, respectively. CAI expands to 12 countries with 13 business locations and has contracts with 180 container depots in 39 countries worldwide.

"A key to enhancing container leasing competitiveness is to strengthen our global platform of container depots, to which containers are returned and taken for repair work, and sites for marketing and operation," commented Mitsubishi HC Capital.

Martina Li
Asia Correspondent

Latest Posts

Hapag-Lloyd increases prices to Australia

Hapag Lloyd has announced new rates for Australian destinations that will take effect in the next months. Firstly, the German carrier will implement a peak...

IPCSA joins Private Sector Consultative Group of WCO

The International Port Community Systems Association (IPCSA), which specialises in global trade facilitation, is the new member of World Customs Organization’s influential Private Sector...

Chittagong port yards face severe box congestions in lockdown

The ongoing lockdown in Bangladesh has started taking a toll on the shipping sector, especially on port yards, creating severe congestion as importers are...

Port of Sines reports 22.5% volume increase in 2021 first half

The Port of Sines has seen significant growth in total container volumes during the first half of the year, demonstrating a remarkable economic recovery...

Top-5 container line to work with GL Terminal in Indonesia

The Indonesian logistics company, GL Terminal has been appointed by one of the world’s largest shipping lines to provide container depot and trucking services...