Intermodal Cargo Container Rental Procurement Research Report Now Available from IBISWorld

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Substitutes are widely available for intermodal cargo container rentals, but market share concentration and vendor financial risks are high. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of intermodal cargo container rental to its growing collection of procurement research reports.

IBISWorld industry market research
Prices will move against buyers in the next three years and are expected to rise; buyers should lock in leasing rates by signing long term contracts

Intermodal cargo container rental has a buyer power score of 3.1 out of 5. The higher the score, the better negotiating conditions for buyers. This score reflects beneficial pricing trends and product characteristics for buyers. However, high market share concentration among suppliers limits buyer power in negotiations. “Intermodal container leasing services are fairly commoditized with little specialization and low switching costs,” says IBISWorld procurement analyst Andrew Yang. Intermodal containers are designed according to international standards and are meant to be interchangeable and used across multiple transportation methods. In addition, there is a widely available substitute in that buyers can purchase intermodal containers instead of leasing them. Consequently, competition among suppliers is largely based on leasing rates and there is very little that differentiates one supplier from another. For buyers, these product characteristics are beneficial because they are not locked in with a single supplier and have greater ability in leveraging prices.

However, the intermodal cargo container rental market structure is unfavorable towards buyers. Market concentration is high, and, as of 2012, the top 10 suppliers control about 88.2% of total equipment held by all container lessors by volume. “This limits the number of suppliers that buyers can choose from, allowing suppliers to dictate prices,” says Yang. In addition, the vendor financial risks are extremely high. Suppliers have taken on very high levels of debt, making them vulnerable to bankruptcy and presenting high risks for buyers. Major vendors include TAL International, Textiles Coated International, SeaCo Ltd., Triton Container International Limited and others.

Recent price trends have been relatively favorable towards buyers with leasing rates remaining fairly stable in the three years to 2013. As the world economy stabilizes and international trade picks up, demand for intermodal containers will remain high. Increased market share concentration will lower competition in the market, reducing pressure to raise prices. Leasing rates are forecast to increase significantly in the three years to 2016. This suggests that buyers should take steps to lock in prices at today's leasing rates rather than paying higher leasing rates in the future.

For more information, visit IBISWorld’s Intermodal Cargo Container Rental procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of intermodal container leasing services. Intermodal containers are standardized steel boxes used to secure and transport goods. Intermodal containers are predominantly used in international trade as they can be used across multiple forms of transportation including ships, trains and trucks. This service group excludes intermodal container sales and intermodal container manufacturing as well as other providers of logistic and supply chain services.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Danielle Goodman
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