Got this question in a recent interview. And containers replacing old ones are excluded.
I was really stuck there and in the end started from GDP and growth rate.
Really curious how you would approach this..
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mmm, difficult one, I would certainly hope that they would give a bit more data.
Market size of new containers = #new containers sold x $new containers
#new containers = extra volume needed to be transported / volume of container
Volume of container = size of market today/#containers now
Extra volume needed to be transported = volume predicted for future – volume needed now
Volume predicted for future = (transportation segment growth%+100%) x volume needed now
Volume needed now = transportation segment now/#containers now
Transportation segment growth% = % growth of GDP of China x correlating factor
Correlating factor = I would guess 1:1 since I would assume that the growth of China's GDP is heavily depended on manufactured goods which need to be transported.
GDP of China = let’s take 10%
Transportation segment now = ask? Link also back to GDP?
#containers now = ask? If we don't have data for China, maybe for other countries and compare the market sizes.
Not a straightforward one to me, I'm curious to the other answers.
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