The portion of our fleet subject to determine finance leases increased from 78% to 80% over the last year. At the same time, we increased the own portion of our fleet from 57% to 60%. We expect both trends to continue not only providing increased stability and visibility to our earnings, but also improving bottom-line performance.
Since 2010, we’ve been surprised that the limited quantity of containers being sold by the shipping lines due in large part to the prevailing high level of utilization over that time. During the last three months, we have seen a significant increase in shipping line disposals via trading deals or sale lease back. These transactions are doubly attractive to Textainer. It provides the opportunity for training purposes and new lease outs, either now or in the future.
Resale quantities remain strong. After declining 15% to 20% from last summer to the beginning of the year, prices have remained steady since at levels that are extremely attractive. A very positive secured trend is that shipping lines are increasingly relying on leasing companies to revive containers. Since 2010, we think the company has purchased more than half of all new container production, and we believe they have purchased 65% or more this year. As a result, leasing companies had the opportunity to enjoy strong organic growth. Indeed, we believe the percentage of the leasing industries new container investment purchase by Textainer exceeds our market share in both dry-freight and reefer containers.
Utilization continues to improve. It was 97.6% at the beginning of the year and been about 98% continuously since last May and is currently at 98.3%. While we expect Utilization to decline slightly during the third quarter, we believe it is likely to remain high for some time.The high-level utilization we see in the case of tight supply market currently and total container production this year is expected to be approximately $2.3 million TEU, a reduction of 15% from last year’s production. We intended the factories have limited new container orders after July, this reduction in new production combined with the increasing sales noted above are likely to support continued high utilization. I just returned from a two week trip to Asia, where I met with some of our customers. The lines I met all benefited from the reduction book of bunker prices and increases in freight rate that have occurred this year. Read the rest of this transcript for free on seekingalpha.com
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