Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Analyst for Justin Yagerman - Wachovia Capital Markets, LLC.
Analyst for Justin Yagerman - Wachovia Capital Markets, LLC
If it’s possible, could you give a little color with regards to how utilization rates are trending thus far in the current quarter?
John A. Maccarone
Yes. They are up and they are continuing to go up so far in the current quarter.
Analyst for Justin Yagerman - Wachovia Capital Markets, LLC
Considering you guys are at 94% in Q2, is there a good run rate for the quarter as far as the increase? Can you give a little more color on that?
John A. Maccarone
We’re currently just under 97%.
Analyst for Justin Yagerman - Wachovia Capital Markets, LLC
You touched on this a little bit earlier around the increased price for new containers. I’m just curious, considering the low cost basis you have on a number of the new containers that are entering, how much of a spread can you really drive between that resale value and the cost basis and how much of that is currently baked into the current numbers?
John A. Maccarone
I’m sorry. I don’t think we quite understood whether you’re talking about lease out containers or sales of containers?
Analyst for Justin Yagerman - Wachovia Capital Markets, LLC
Sales of containers. Given where prices are now and the cost basis on some of your containers, what incremental margin are you seeing right now on those and how much of that is in your current numbers?
John A. Maccarone
I’m not quite sure. Ernie talked about the earnings we have year to date on sales containers. I’m not quite sure exactly how much more specific you want us to be. I mean obviously container prices are significantly above the depreciated value of containers that are 12 years old but again I’m sorry, I’m not quite sure what you’re driving at.
Analyst for Justin Yagerman - Wachovia Capital Markets, LLC
I guess it was more just the strength of the current prices and how much of that is reflected in your Q2 numbers and whether or not we should see a little bit more of a pop going forward or whether or not that’s already been baked in.
John A. Maccarone
I don’t think that we’re going to see used container prices increase significantly above their current levels. They certainly are what would be historically very attractive prices. The resale prices will be affected somewhat by what happens in the new container market and although the sentiment there is uncertain, there’s a reasonable number of people who think that new container prices are around their peak, that the manufacturers have space, and as a result new container prices ought not go up significantly from where they are now notwithstanding that some raw material costs remain high and in fact perhaps increasing. Based on that I don’t think you’re going to see used container prices increase significantly above their current levels going forward. So to the extent that we are selling containers out of our fleet, I think you can continue to see the same gains on sales from containers in our fleet but again the trading unit supply is likely to decrease.
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