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Buyer Power Score – Intermodal Container Rental

By November 1, 2022May 29th, 2024No Comments

The AOP Buyer Power Score is a content offering created in partnership with ProcurementIQ that rates the balance of power between buyers and sellers for a particular spend category

Today we are reviewing Intermodal Container Rental.

The Numbers

The Buyer Power Score for intermodal container rental is -2.1 on a scale of -5 to 5, with -5 signifying low buyer power and 5 meaning high buyer power. The more power a buyer has the greater leverage they have to get lower prices and better contract terms.

Although on its own this is not an advantageous negotiating position for buyers, conditions are expected to worsen in 2023 and beyond. The Buyer Power Score is predicted to continue falling, potentially reaching -3.1 in 2023. Buyer leverage has been falling since 2019, fueled by global supply chain disruptions and uncertain consumer demand.

How to Use this Information

This report covers intermodal container rental, standardized steel boxes primarily used to secure and transport goods internationally. They are referred to as intermodal because they can be used across multiple forms of transportation, including ships, railways, and trucks. Typical buyers are shipping line operators, freight forwarders and long-distance trucking companies, who then rent them to any number of company types – including B2C retail.

Intermodal container rental rates are expected to rise in the next three years as global economic activity continues to mount in the wake of the pandemic.

Aside from purchasing containers, there are no comparable substitutes for intermodal container rental. Purchasing intermodal containers is cost-prohibitive for most buyers, hence the rental model.

Dig Deeper

We have partnered with ProcurementIQ to dig into their treasure trove of over 1,000 indirect category intelligence reports, with new insights every Friday.  To dig deeper into the Intermodal Container Rental report, click here.

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