Key Drivers, Challenges, And Trends
As per the global container leasing market, the growth rate of leasing market is subjected to be around 16.12% from 2017 to 2021. Well, the report was prepared based on the in-depth analysis along with the inputs from the industry experts. Now reports published by Data Intelo, states that the global container leasing market is valued at USD 5.2 billion and that is expected to grow to USD 1.7 billion by 2026.
Now the report clearly states that market landscape and growth play a great part in the global shipping container leasing industry. Here one of the major trends that are present in the container leasing market is consolidation.
Frankly, the global container leasing market is hugely consolidated with the top five major players having somewhere around more than 80% of the global market share in container leasing.
Of course, small players are entering the container leasing market for gaining huge opportunities along with the competitive pressure from huge players. This has forced them to combine with large players.
Global Increase And Development
As per multiple research reports, the major driver in the market would be a huge increase in global container traffic. Since 2010, the global container traffic has been growing at a steady rate. Of course, the global recession of 2008, has lead to a huge negative impact on the container’s growth and movement in mid-2009.
But the demand for the container has somewhat increased from 2010. Also, the development of the inter-Asia and intra-Asia trade would be another major factor that can boost the container traffic throughout the globe. There are various geographical landscapes like North America, APAC, Europe, etc where the demand for shipping container is high.
Challenges For Container Leasing
Now for a container lessor, the primary challenges would be the following –
● Workforce Support
Now most of the time when you are going to begin a container leasing business, the major issue would be getting individuals to work for you. You would require administration staff that handles credit, billing, and collections.
● Capital Investment
For running a container leasing business, you would require a good amount of capital. Besides the shipping container inventory, there are other startup costs present too. These would be the cost of the storage facilities, business location, and other construction and delivery materials.
● Excessive Competition
Now major players of the shipping containers industry would be a small portion of the industry’s revenue. But that would be a tough competition with other well-known brands.
Trends And Improvement
The container leasing market would grow to around 26.35 mn teu from 2020-2024. Here the progress is at the CAGR of around 17-19% in the forecast period.
Also, the report shows that leasing markets have a holistic analysis, forecast, market size, trends, growth drivers, etc. It even contains a vendor analysis report too.
Most container leasing companies go with a good container leasing software that can provide an up-to-date analysis based on the current global market scenario, the latest trends, and the whole market environment.
Also, the container leasing tool shows that the market is driven by the growth in the international containerized seaborne trade. Plus, there is an increase in the whole amount of free trade agreements and even the formation of the trade blocs. Of course, the growth and development of international containerized seaborne trade would boost the growth of the market too.
Advantages Of A Good Container Leasing Software
► Easy To Use
Now the container leasing tools are simple as well as intuitive. This means that managing your container leasing business won’t be so much intimidating. Additionally, you can even call your account manager at any time.
► Streamline Operations
The container shipping tool would help in mitigating risk as well as uncertainty. Also, it would have seamless integration among the contracts, financials, inventory, reservations, and customer details.
► Saving Time
With the shipping container lease program, customers can get rid of the time consuming and error-prone methods. In short, the whole manual procedures would be dismissed and the shipping employees would be able to focus on necessary matters.
Frankly, a good container leasing tool would provide you with the best leasing reports and even the trends that are useful for taking your shipping business to great heights. It is high time; you get one to improve your business.