Key findings: Container shipping
This container shipping market intelligence report offers insights into the supply chain margins, category management objectives, freight rates forecasts, and supplier cost breakup. An analysis of the top container shipping companies and the current market landscape is also offered in this report.
Embracing digitization in process infrastructure will be one of the crucial growth drivers for the container shipping market during the forecast period. It is a widely acknowledged fact among container shipping companies that implementation of automated cargo-tracking and navigation systems and digital platforms has augmented the efficiency and transparency of their operations. Consequently, this is promoting the viability of the services among the buyers who are investing more in the current container shipping market. However, to attain stability in the pricing strategies to procure this category will be a cumbersome task because of the constant fluctuations in container freight rates. From the perspective of the suppliers, increasing merger and alliances between the leading container shipping companies will arm the service providers with better bargaining power that will give them the liberty to increase the freight rates.
To access complete details on the factors that are influencing the freight rates in different regions until 2023, download a free sample.
Our reports from the logistics, warehousing and transportation category offer buyers with actionable data on the current and future supply market scenario. Coverage of the container market in the US, including category spend analysis, freight rates outlook, and supplier cost structure among others is also offered in this container shipping market intelligence report. Additional information includes an analysis of the cost and volume drivers, top container shipping companies, and category management strategies.
Insights offered in this container shipping market intelligence report will help the buyers understand:
- Global and regional spend potential for the period of 2018-2023
- Pricing models and the factors influencing them
- Strategies to procure at the best freight rates
- Category management strategies
Analyze the global category spend for container shipping
The cost-effectiveness of transporting cargo via the sea is one of the primary factors that are contributing to a positive spend growth rate of the container shipping market on a global scale. The recent statistics testify that the container shipping market accounts for over 62% of the global trade value. The refrigerated container shipping industry is experiencing a high demand for the transportation of fresh food items and temperature-sensitive pharmaceuticals. This is expected to contribute to the category growth to a significant extent during the forecast period.
Access the complete year-over-year spend growth rate and category spend details by downloading a free sample copy.
This container shipping market intelligence report covers:
- Regional spend opportunity for suppliers
- Global and regional spend segmentation
- Cost drivers impacting freight rates in the current market
Optimize category spend for container shipping
At a time when dynamic freight rates are spiraling buyer’s procurement spend in the container shipping market, it is advised that they engage with container shipping companies that agree to consolidate cargo by accepting transportation requests from different regional or global service providers. This strategy has been observed to reduce costs on each container by sharing OPEX, such as fuel and employee wages, of the vessel.
This container shipping sourcing and procurement report also covers:
- Total cost of ownership
- Supply chain margins and outlook for input costs
- Overview and comparison of pricing models
Assess category spend for the US region
Higher import of goods such as textiles and apparel driven by the growth of consumerism in the US is directly contributing to the spend growth rate of the container shipping market. However, the strained trade relations between the US and China have led to the imposition of high tariffs against goods from China. This is likely to affect the demand for container shipping in the US during the forecast period.
Additional information offered in this container shipping market intelligence report will help buyers analyze:
- Supplier cost structure in the US
- Margins of suppliers and category cost drivers
- Freight rates forecasts in the US
Build strategies for effective supplier selection
One of the frequently occurring challenges in this operation is transshipments which require a shipment to pass through one or many intermediate destinations before reaching the destination. This increases the chances of delays in delivery which results in the damage of perishable cargo and adds up to the overall expenditure. It is advised that buyers partner with container shipping companies that can minimize transshipments.
This container shipping sourcing and procurement report identifies the significant costs incurred by suppliers and provides additional information on:
- Supplier ecosystem
- Buyer and supplier KPIs
- Incumbent supplier evaluation metrics
Devise effective category management strategies for container shipping
With the environmental watchdogs imposing stricter emission controlling regulation, category managers must ensure that service providers maintain absolute adherence with industry regulations, such as emission control regulations from bodies such as the IMO. Instances of non-adherence will earn the service providers regulatory actions which, in turn, will disrupt the buyer’s supply chain.
Key insights offered in this container shipping market intelligence report will help the buyers identify:
- Critical KPIs for buyers and suppliers
- Category management objectives
- Sustainability practices
Determine the spend dynamics for key geographies
A weak global economic growth predicted by IMF will hinder industrial growth which will impede category growth. The political unrest over Brexit is affecting the overall trade scenario which consequently is curtailing the growth scopes of the container shipping companies in Europe. However, recovering from an initial slowdown following the recession, South America is exhibiting prospects of growth of the container shipping market. The gradual improvement of the labor market is increasing consumption of goods, thereby; creating a substantial requirement for container shipping services in the region.
Key geographies analyzed in this container shipping services sourcing and procurement report include the following:
- North America
- South America
Information on the top container shipping companies that offer services at the best freight rates, category management insights, and significant risks faced while procuring container shipping services are provided in this market intelligence report. Download a free sample to access the report’s complete scope of coverage.
Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Container Shipping - Category Spend Analysis
According to SpendEdge analysts, one of the key growth contributors for global container shipping supply market is the increased demand to transport perishable foods, pharmaceuticals, minerals such as iron ore and steel, and crude oil and its by-products. Transport of such goods by sea is cost-effective when compared with rail or air. This is because in sea transportation bulk volume of goods can be transported to extremely long distances at reduced fuel charges when compared with rail or air.
Container Shipping – Procurement Best Practices
Buyers should ensure that containers are washed properly and treated with pesticides to ensure cleanliness. This is important mainly while transporting food products that can be easily contaminated by microorganisms such as parasites or bacteria. A key strategy adopted by procurement managers in this market space is ensuring cleanliness of containers.
Container Shipping - Procurement Challenges
A major procurement pain point experienced by the buyers is the limitations of regional suppliers. SpendEdge’s procurement specialists predict that the buyers must engage with regional suppliers that are capable of utilizing their connections with alliance members to offer value-added services and counter this specific procurement pain point.