Buyers Market
Also known as: buyers market, buyer's market, soft market, oversupply market
A buyers market is a market condition in which the supply of goods, services, or available capacity is greater than the demand from customers. Because sellers are competing for fewer buyers, customers usually have more choices and stronger negotiating power. In logistics and shipping, this can occur when there is more vessel, truck, warehouse, or freight capacity available than the market requires.
In a buyers market, prices and freight rates generally come under downward pressure because suppliers compete more aggressively for business. Buyers may be able to negotiate better rates, longer payment terms, improved service conditions, or more flexible contracts. The situation usually continues until demand increases or excess capacity is removed from the market.
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