Transportation
Last updated: April 2008

Industry Codes:
Container
  • NAICS – 483111 Deep Sea Freight Transportation
  • SIC – 4412 Deep Sea Foreign Transportation of Freight
Chassis
  • NAICS –336212 Truck Trailer Manufacturing
  • SIC – 3715 Truck Trailers

Overview

The demand for ISO marine containers suitable for international transport was excellent in 2007 due to unprecedented demand for marine shipments. There is an oversupply of chassis and, as a result, this segment of the industry is weak.

Industry Condition

  • Containers – Good
  • Chassis – Poor

Mergers & Acquisitions

  • Mobile Mini, Inc. entered into an agreement with Mobile Storage Group, Inc. under which Mobile Storage will merge into Mobile Mini in a transaction valued at approximately $701.5 million. (February 22, 2008)

Key Industry Indicators

  • World Economic Output
    The U.S. subprime crisis' effects continue to be felt globally. In April, the IMF revised its January estimate down by 0.5%. The IMF is now projecting global growth to slow in 2008, from 4.9% in 2007 to 3.7% in 2008. A recovery is expected in 2009.
  • U.S. Trade Deficit
    In March 2008, the U.S trade deficit decreased 5.7% over February to $58.2 billion.
  • Regional Shipping Trends
    • U.S. Dollar vs. Chinese Renminbi
      The continued depreciation of the U.S. Dollar to the Chinese Renminbi is resulting in a decrease in shipments from China to the U.S.

    • U.S. Dollar vs. Euro
      U.S. goods are becoming more competitive in the European market resulting in an increase in shipments along U.S. to Europe routes.

New Equipment Demand

Containers – The price of new 20-foot and 40-foot containers is approximately $2,600 and $3,500, respectively. Prices have increased steadily since 2005 at a rate of about 15% to 20% annually. Sales are up by nearly 25%.

Secondary Market

Overview

The market for used containers is also strong as high utilization and international demand is slowing the movement of units into the secondary market. Twenty-foot containers in good condition offered in small quantities were selling for about $1,700 (65% of replacement cost), while 40-foot containers were selling for about $2,200 (63% of replacement cost). A discount of approximately 20% to 25% was required when selling containers in large quantities.

Conversely, the market for chassis is poor. Overbuilding and railroad mandated pooling resulted in substantial overcapacity. Some chassis are being scrapped. Forty-eight-foot chassis are in such oversupply that some are being converted to shorter lengths.

Used Equipment Values

Containers – Good
  • Supply of used equipment – Increasing
  • Demand for used equipment – Increasing

Chassis – Poor
  • Supply of used equipment – Increasing
  • Demand for used equipment – Decreasing

Secondary Market Value Indicators

Containers
  • New equipment pricing – Increasing 20%
  • 20' Container, 40' Container
  • Past 12-Months – Increasing 10%
  • Past 3-Months – Increasing 5%

Factors Influencing Value & Marketability

  • Condition
  • Construction
  • Length
  • Quantity

Industry Experience

Valuation Monitor

AccuVal routinely conducts appraisals in the Transportation industry of Containers & Chassis used for intermodal transportation in the marine industry. We also value marine vessels, port facilities, stevedores, and transportation companies and appraise similar assets in the Mobile & Modular industry. View industries serviced >>

Representative Clients Our Associates Have Served

View More Clients

Success Stories

  • Assisted Lender Consortium in Capitalization of $1.5 Billion Facility for Merger of Two Major Industry Leaders
  • Provided Valuation Services on an Expedited Basis as part of the Acquisition of GE Modular by Resun Leasing to Form Mod Space
  • Provided Valuation Related to the Acquisition of the Largest Lessor of Intermodal Container Chassis and Cargo Containers in the World
  • View all Success Stories