Shipping Containers Procurement Intelligence: A Comprehensive Guide

The shipping containers category is anticipated to grow at a CAGR of 7.1% from 2023 to 2030. The expansion can be attributed to the rise in international trade, facilitated by the digitization of the shipping sector and the rising utilization of specialized containers. Additionally, the container industry has experienced further growth in response to increasing consumer demand. The shipping industry contributes to around 90% of the goods transported. According to the International Chamber of Shipping 2022 report, around 11 billion tons of goods are transported through shipping containers every year.

Apart from transportation, shipping containers have also been gaining momentum in the construction industry, from building homes to creating pop-up stores. Shipping containers are used for modular construction as they reduce costs and construction time and are efficient and easy to construct. They are used in the construction of homes, schools, hotels, and emergency shelters. For instance, in 2022, Spanish studio Fenwick Iribarren Architects constructed a thousand dormitory rooms using shipping containers for fans attending the FIFA World Cup 2022. Additionally, countries such as Australia and the UK are carrying out constructing activities using containers due to the need for affordable housing, specifically in urban areas. Rising demand for the category from the construction industry is expected to drive the growth of the category.

Container manufacturers are equipping containers with smart technologies such as sensors to monitor temperature, humidity, and other environmental factors for transporting sensitive goods such as food items. Containers are being connected through Internet of Things (IoT) technology as it can help to track and gather real-time data of the container and take necessary steps in case of emergency. Furthermore, with the growing significance of sustainability, container producers are exploring new materials and processes to reduce environmental impact. This involves the incorporation of recycled steel, environmentally friendly coatings, and the development of containers featuring energy-efficient elements such as insulation.

The category is fragmented in nature due to companies having huge numbers and types of container fleets. The primary raw material for containers is steel, and suppliers of steel may have some bargaining power. However, container manufacturers often have long-term relationships with steel suppliers, and the global availability of steel may reduce the supplier power.

Order your copy of the Shipping Containers Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

The buyers in the category are typically shipping companies, logistics providers, and other industries that require containerized transport. While these buyers often purchase in large volumes, there are multiple container manufacturers, giving buyers some negotiating power. However, switching costs between container suppliers may be relatively high. 

Raw material (steel), labor, rent and utilities, paint, cutting and welding equipment, and others are some of the key cost components incurred in manufacturing shipping vessels. Raw materials account for around 60% of the total cost whereas labor costs account for 10% of the overall cost. The cost of production depends on the size of the container, such as 20 feet or 40 feet. The price of 20ft shipping containers (cargo worthy) in the U.S. is around USD 1,460, and 40ft is USD 2,695. Similarly, the price for a 20ft vessel in China is around USD 1,310, and the price for a 40ft is USD 1,635. In India, the price for 20ft is USD 1,238, and USD 2,113 for a 40ft vessel. Renting a shipping container can cost between USD 50 to USD 500 per month.

In terms of shipping container manufacturing, companies such as Maersk, COSCO Shipping lines, and Evergreen outsource the manufacturing of shipping containers as per their requirements. Container manufacturing companies outsource operations such as raw material procurement and have complete in-house container manufacturing lines. Developing a strong relationship with container suppliers and evaluating suppliers based on the type and size of vessels they provide and ability to provide customized containers. Buyers of the category also maintain long-term relationships with container suppliers and look for suppliers' reputations, track records, and geographical presence of the supplier.

Browse through Grand View Research’s collection of procurement intelligence studies:

• Order Fulfillment Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Payment Processing Solutions Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Shipping Containers Procurement Intelligence Report Scope

• Shipping Containers Category Growth Rate: CAGR of 7.1% from 2023 to 2030

• Pricing growth Outlook:  5% - 6% (annual)

• Pricing Models: Cost-plus pricing, product-based pricing, Competition based pricing

• Supplier Selection Scope: Cost and pricing, past engagements, productivity, geographical presence

• Supplier selection criteria: Type and size of containers, customized container, quality, delivery option, supplier reputation, long-term relationship, contract terms, safety and environmental compliance, location and presence of supplier, and others

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key companies

• Maersk

• COSCO Shipping Lines

• Evergreen

• CMA CGM

• Hapag-Lloyd

• Ocean Network Express

• Wan Hai Lines

• Singamas

• W&K Container

• HMM

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends

• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships

• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing

• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions


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