Learn about actual and potential costs
How much should I pay for Rail Tank Car Leasing Services?
What is the average price of Rail Tank Car Leasing Services?
This procurement report includes pricing information to help you purchase Rail Tank Car Leasing Services. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Rail Tank Car Leasing Services been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Rail Tank Car Leasing Services yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Rail Tank Car Leasing Services?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Rail Tank Car Leasing Services with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase ?
Market share concentration is high among rail tank car lessors, with the top four suppliers generating about 70.0% of the market's revenue due to significant barriers to entry into the market. In total, about 27 suppliers serve this market, and most have less than 1.0% of market share. Barriers to... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided these products to your longest-tenured client?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
What industry do you most commonly supply this product for?
To what extent will ordering multiple products from your firm allow me to save on costs?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Supply Chain Risk
Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
Has the availability of raw materials tightened due to the coronavirus outbreak?
Over the past three years, what percentage of your revenue has been dedicated to labor?
How have fluctuations in input prices affected the prices of your products during the past three years?
How do you mitigate sudden price increases in raw materials?
When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?
How, if at all, has your supply chain been affected by import tariffs levied in 2018?
How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?
How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?
What ongoing training procedures do you provide for your staff?
Have you ever been found to be noncompliant with regulatory frameworks?
Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
How does your lead time for leasing tank cars compare to the market average? Has this changed due to the pandemic?
How do you prioritize customer access to leases?
From which manufacturers do you source your tank cars? Are you prioritized over your competitors for access to those manufacturers' cars?
How has your fleet changed and grown during the past three years?
Do you offer operating leases, finance leases or both? Have your lease options changed due to the coronavirus pandemic?
Do you offer both short- and long-term leases?
What lease type and duration is most popular among your customers?
What trends have you observed during the past three years regarding preferences for lease type and duration?
Are your renewal rates high for operating leases?
How do your prices compare to those of your competitors?
How can my lease terms be adjusted to earn more favorable pricing?
Can I receive price breaks for leasing older cars?
What is your discount schedule regarding quantities and railcar type?
How has your pricing changed during the ongoing pandemic and economic recession?
Modifications & Additional Services
What modifications to my cars will you need to make to optimize them for transporting my commodity?
How can I lower the modification costs, and will a portion of these savings be passed on to me?
What services can you bundle with my tank car lease to lower my overall costs (e.g. leasing services for other types of railcars or equipment)?
What financial services do you offer through your subsidiaries or parent company? Can bundling such services reduce my monthly lease rate?
Maintenance & Repair
How extensive is your repair shop network?
Do you outsource any repair work?
What is the turnaround time for basic repairs?
What is your process for sending a tank car to a shop?
What types of repairs do you cover and what do you not cover?
If I pay for a covered repair out of pocket, how do I receive reimbursement? How long does reimbursement take?
Regulations & Safety
What percentage of your fleet was built after October 2011 (and is thereby compliant with AAR standards)? What percentage of your fleet was built after October 2015 (and is thereby compliant with current DOT regulations)?
How much of your fleet consists of older cars that have been modified to meet the new AAR and DOT standards?
How are you preparing to ensure that your fleet is compliant with DOT regulations by the applicable deadline?
How can you assure me that your previously used tank cars are leak-proof and safe?
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Key elements for every RFP
What should my RFP include?
Buyers should indicate their proposed budget for the full delivery of leased tank cars.
Buyers should request a quote of the monthly lease rate for their exact specifications, as well as proposed rates for different lease lengths and tank car specifications that may still meet the buyer’s needs.
Buyers should indicate whether or not they require financing options.
Buyers should request a breakdown of any additional fees or charges that may be applied, including the cost of maintenance services not covered by the lease contract.
For long-term leases, buyers should request a detailed breakdown of the cost-sharing proposal for retrofits and mandatory upgrades for tank cars that are not DOT compliant.
Buyers should prioritize the vendor’s ability to deliver compliant tank cars in an efficient manner, whether new or used.
Buyers should consider the estimated total cost of ownership, including the share of retrofitting costs that they will be responsible for.
Buyers should consider the vendor’s ability to provide maintenance services in the areas in which the buyer intends to operate.
Buyers should reference the Buying-Decision Scorecard section of this report for key criteria to consider when evaluating providers.
Buyers should indicate the timeline for questions, negotiations and the deadline for proposal submissions.
Buyers should request a definite delivery date for the tank cars.
Evaluate major factors to mitigate risk
How risky is the supply chain?
The supply chain risk for rail tank car leasing is medium because most major links in the supply chain exhibit moderate risk. This risk is evident in the market's current supply shortage. Securing an uninterrupted supply of tanker railcars as a buyer's demand grows is currently extremely difficult. Each buyer... Subscribe to learn more.