In this exclusive interview, we speak with the team at VS&B Containers to gain insights into the latest trends in container leasing, market challenges, and the company’s vision for the future of containerized trade.
The global shipping container leasing market plays a pivotal role in facilitating international trade. As the backbone of global logistics, shipping containers are indispensable for the efficient and cost-effective movement of goods across continents. The global market size is substantial, estimated to be around $5.8 billion in 2022, and is projected to grow at a CAGR of approximately 14 per cent from 2023 to 2029, driven by factors like increasing global trade volumes, e-commerce growth and the need for flexible transportation solutions. India, with its burgeoning economy and increasing reliance on global trade, presents a significant market for container leasing. The Indian market has witnessed robust growth in recent years, with an estimated CAGR of around 8-10 per cent in the past few years. This growth is fuelled by factors such as increasing exports, growing imports, and the rise of e-commerce. When it comes to the containerized cargo shipping trade, few companies in the global market exemplify resilience and adaptability as much as VS&B Containers Group. Established in 1996, the family-run business has grown into a pivotal player in the leasing and trading of shipping containers, operating from 13 offices across nine countries. At the helm is Vinay Paulose, the company’s dynamic Director and CEO, who has steered VS&B through significant transformations during his 12-year tenure.
A family legacy and a global vision
VS&B Containers Group’s journey began as a family venture spearheaded by Bijoy and Sujata Paulose. The foundation laid by them has evolved into a globally recognized brand in container leasing and trading. Vinay Paulose, an MBA graduate from IE Business School and a logistics expert with a master’s degree from MIT-Zaragoza, brought fresh perspectives to the business when he joined in 2011. “I started my journey in the cold chain industry before transitioning to VS&B,” Vinay recalls. “Over the past 11 years, I’ve worked across various regions, starting with our offices in Singapore and Indonesia, later managing operations in Mumbai, and now leading the company from Dubai.” Under his leadership, VS&B has cemented its reputation as a leader in container leasing and trading. The company boasts a fleet of nearly 30,000 containers, spanning both international and domestic lease markets. On average, VS&B sells between 15,000 to 20,000 containers annually, covering a spectrum of new and used units across geographies.
The state of the industry: 2024 and beyond
Reflecting on 2024, Vinay describes it as a “good year” for the container leasing business. “Shipping thrives on uncertainty,” he explains. “Supply chain disruptions—be it due to geopolitical crises or route changes—create a surge in demand for containers. As a nimble company, we’ve always kept our ears to the ground, adapting strategies to capitalize on such market dynamics.” However, Vinay warns of potential challenges ahead. The resolution of global conflicts like the Russia-Ukraine war and Red Sea crisis may lead to an oversupply of containers. “For shipping lines, this could spell trouble. But as traders, an influx of containers entering the sale market can be an opportunity for us to offer competitive rates to our customers,” he notes. In India, the picture is more optimistic. “With robust growth in manufacturing, exports, and infrastructure development, India’s demand for containers is set to rise,” Vinay predicts. Yet, he emphasizes the importance of government policies, such as cabotage regulations and container manufacturing incentives, in shaping the future of domestic container trade.
Challenges and opportunities in container leasing
The global container leasing industry is dominated by a few major players, with Indian companies holding less than 0.5 per cent of the market share. According to Vinay, this is largely due to funding challenges. “Indian f inancial institutions often fail to grasp the leasing model. They demand fixed asset collateral for funding because containers are considered movable assets. As a result, we rely heavily on international funding from hubs like Singapore and Hamburg,” he explains. Despite these hurdles, VS&B has carved out a niche, catering to diverse customers, including shipping lines, non-vessel owning common carriers (NVOCCs), rail operators, transporters, and multinational corporations. The company has also ventured into specialized markets such as reefer containers for perishables and tank containers for liquids, albeit with an eye on addressing infrastructure gaps. “Providing a reefer container isn’t enough,” Vinay points out. “It requires an ecosystem—plug points, generators, technicians, and reefer yards—to ensure seamless operations. We’re working holistically to develop such ecosystems.”
Innovation in bulk cargo handling
In a bid to revolutionize bulk cargo handling, VS&B has introduced containers specifically designed for this purpose. “It’s not just about the container,” Vinay emphasizes. “The system includes specialized spreaders for cranes, enabling efficient loading and unloading. This method is faster, less labour-intensive, and environmentally friendly compared to traditional bulk handling.” However, the success of such innovation’s hinges on collaboration across the supply chain. Ports need infrastructure upgrades, and rail operators must align with these advancements. “We’re partnering with major port operators to invest in these systems, making ports more competitive and reducing pollution,” Vinay says.
The push for domestic growth
The domestic container leasing market in India is witnessing steady growth, driven by government initiatives promoting rail and coastal movements. Projects like Sagarmala, which explores riverine logistics, could further boost demand. Yet, Vinay remains cautious. “India’s balanced trade flow—where imports nearly match exports—reduces the need for local manufacturing of containers. For manufacturing to achieve economies of scale, exports need to significantly outpace imports,” he explains. The government’s push for container manufacturing is a step in the right direction, but sustained momentum is needed. “Incentives and policy support are crucial for manufacturers to thrive and compete on a global scale,” Vinay asserts.
Geographic and strategic expansion
VS&B continues to explore growth opportunities across regions and product lines. “Our geographical expansion and diversification into new products are paying dividends,” Vinay says. “For 2025, we aim to stay agile, navigating market dynamics and adapting to geopolitical shifts, such as potential policy changes under the new U.S. administration.” India remains a key focus area, with immense potential for domestic growth. However, easing cabotage regulations could impact the domestic leasing business and Indian manufacturing competitiveness. “We’re closely monitoring these developments to align our strategies accordingly,” Vinay adds.
