Intermodal Container Leasing in the US Industry Market Research Report Now Available from IBISWorld

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The Intermodal Container Leasing industry is heavily dependent on large-scale domestic and international trade levels. Thus, as consumer spending fell during the recession and demand for goods across the economy dipped, fewer containers were needed for the transport of products. However, China's resilience and strong growth throughout the past five years, and the United States' close trade ties to that nation, kept demand for containers used for international trade high. As the US economy continues to recover, the industry is expected to keep growing at a brisk pace. For these reasons, industry research firm IBISWorld has added a report on the Intermodal Container Leasing industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

China's rapid growth has helped keep revenue steady for container leasing firms

Operating in the Intermodal Container Leasing industry has become a growing part of business for many shipping companies, with many firms leasing just under half of their total container fleet. In the past three years, companies that solely lease containers have benefited from renewed consumer spending that flowed through the supply chain as increased demand for goods, particularly those sourced from or destined for overseas locations. “For some larger freight firms,” says IBISWorld industry analyst Josh McBee, “leasing part of their container fleet provides supplemental income and increases operational flexibility with regard to the use of otherwise idle containers.”

During 2009, all of the industry's major markets suffered reduced shipping activity and decreased their demand for containers. Consumer spending fell in line with higher unemployment and decreased disposable income. In turn, orders for goods throughout the supply chain fell. As the effects of weak consumer demand rippled through the supply chain, demand from road, rail and water freighting all fell by double digits. In turn, industry revenue fell an estimated 10.4% during the year, as fewer containers were leased. According to McBee, the constant for container-leasing firms during the period has been strong demand from emerging economies, especially China. A favorable trade-weighted index has made American goods more affordable on the international market. US exports to China have been steadily increasing during the past decade, and the vast majority of these shipments arrive in intermodal containers. This offsetting factor is expected to sustain average annual industry growth of 4.0% during the five years to 2012. The Intermodal Container Leasing industry has a fairly low level of concentration; only three companies – TAL International, CAI International Inc. and SeaCube Container Leasing Limited – capture more than 5.0% of the market, and the majority of firms are regional operators.

Looking ahead, revenue is expected to increase 7.4% and total an estimated $2.1 billion in 2012. As consumer confidence slowly returns in line with falling unemployment, orders for goods throughout the supply chain will increase, in turn driving continued growth in container leases. IBISWorld also forecasts growth in each of the industry's downstream markets (road, rail and water freight), which will spur ongoing increases in the total US container fleet. High and rising steel prices will remain the major thorn in the industry's side: Containers are largely constructed from steel, and high steel prices increase operating costs for leasing firms. It is projected that many firms will attempt to increase their leasing rates to offset higher input costs. As such, industry revenue is forecast to increase through 2017. For more information, visit IBISWorld’s Intermodal Container Leasing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry leases intermodal containers for the long- and short-term needs of transportation companies and shippers. Intermodal containers can be transported on ships, trains and trucks.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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