Deep Sea Cargo Transportation Services Procurement Category Market Research Report Now Available from IBISWorld

Share Article

Price growth has been slow because suppliers faced competition from other shipping modes, but the number of businesses and total trade value are expected to grow faster in the next three years, supporting faster growth. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Deep Sea Cargo Transportation Services to its growing collection of procurement category market research reports.

IBISWorld procurement market research
Price growth has been slow because suppliers faced competition from other shipping modes

Deep sea cargo transportation services have a buyer power score of 3.6 out of 5, indicating a high level of buyer power. Low price volatility over the past three years and low total cost of ownership are the primary drivers allowing for stronger buyer negotiation power, says IBISWorld analyst Lauren Setar. During the past three years, prices have not fluctuated much, primarily falling in line with economic activity. Greater industrial production, a higher trade value and the growing number of businesses have created steadily rising demand for the deep sea cargo transportation market.

The market's mature life cycle stage points to low price volatility, allowing for greater buyer negotiating power. Additionally, the ownership costs are low, benefiting buyers and allowing for greater purchasing power. Although buyers typically require tracking, customs presentation, preparation for hazardous materials, storage and a range of other services, the fees associated with these services are not typically hidden, and suppliers usually bundle extra services in the total price. Buyers also gain negotiation power through the market's moderate level of competition. With competition, suppliers aim to win business by lowering prices or working with buyers for favorable terms, says Setar. Buyers are not limited by the number of deep sea cargo transportation service providers in the market and can choose from many suppliers to get the lowest price.

Although buyers have a large amount of negotiation power, they face fluctuating input costs, specifically the price of fuel. While buyers can negotiate rates downward through large shipments or contracts, fuel surcharges are generally nonnegotiable. As the price of fuel increases, suppliers face higher operational costs to ship cargo; this factor adds risk to supplier operations and this cost is eventually passed on to buyers in the form of higher prices. Although fuel prices are anticipated to increase over the next three years, buyers with high volumes and consistent shipping needs will nevertheless benefit from long-term contracts. For more information, visit IBISWorld’s Deep Sea Cargo Transportation Services procurement category market research report page.

Follow IBISWorld on Twitter:!/IBISWorld.

Like IBISWorld on Facebook:

IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of deep sea cargo transportation. This form of transportation involves US flagged vessels and non-US flagged vessels that move freight. Activities include moving cargo to or from foreign ports, but do not include the movement of passengers.

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
Market Profitability
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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld Inc.
+1 (310) 866-5042
Email >
Visit website