Introduction to container leasing methods

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Industry Encyclopedia

Time of issue：

2023-07-06 16:54

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Introduction to container leasing methods

I. The term lease of containers can be divided into long-term lease and short-term lease.
Long term lease: Usually a long term lease.
Long leases are good for both the renter and the company. For the leasing company, there is a relatively stable rental income during the leasing period; To the renter, as long as the rent is paid, the box is as good as his own; Moreover, the rent for a long-term lease is lower.
Long term lease can be divided into lease and actual lease.
1. Lease: The case is purchased by the hirer after the expiry of the lease term.
2. Actual service term lease: it means that the container lessee returns the container to the container leasing company after the service term expires.

Short-term lease: The container is rented for a short period of time according to the required service life.
Compared with long-term leasing, short-term leasing is more flexible. The box renter can determine the lease term according to the time and place he needs, but the rent is relatively high.

2. Rental: Container rental includes one-way rental and return rental.
One-way leasing: One-way leasing is mainly used for the unbalanced supply of goods on the same route, that is, one-way use of containers from the port of origin to the port of destination.

For example, in the container cargo business between Port A and Port B of A shipping company, the cargo volume between port A and Port B is large, while the cargo transportation between Port B and Port A uses fewer containers, that is, the inbound and return cargo volume is unbalanced. However, the company has no container transportation business from Port B to other areas, so the operation result is bound to lead to the backlog of empty containers at Port B. In this case, the company can rent one-way containers from Port A to Port B, which can save the storage fee of empty containers in Port B and the freight cost of transporting them back to Port A from Port B.

When using one-way container leasing, it should be noted that in addition to the rental fee, the hirer will sometimes have to pay for pick-up and return of the container. If the container user rents from the place where the leasing market is good to the place where the market is bad, the renter must pay the pick-up fee and return fee; Otherwise, no or only a small amount of this cost is paid.

Round-trip leasing: Usually used for routes with a more balanced cargo volume.
This kind of lease is not limited in terms of lease term. During the lease period, the hirer has a large free use right, which is not limited to a simple return trip. This type of lease has strict restrictions on where the box can be returned.

Flexible leasing: Flexible leasing of containers is similar to long-term leasing in terms of cost, and similar to short-term leasing in terms of use, which can be used flexibly.

This type of lease is usually for one year. In bulk rental of boxes, there is a rebate, and the rent is almost as cheap as a long-term lease. In the case of large container freight volume, many operating routes and unbalanced inbound and return freight volume, this leasing method can adapt to changes more easily, and is a very valuable leasing method.
In flexible leasing, it is generally stipulated that the number and place of container pick-up and return per month, the number of days for container rental, and the provisions on the use of the equipment of the leasing company.

In the container leasing business, apart from selecting container leasing companies according to their own needs, the hirer should also note that:

(1) The business scope, management level and reputation of the leasing company;
(2) Restrictions on the number of containers returned at the destination;
(3) Investigation and comparison of rental rates;
(4) Provisions on pick-up and return fees;
(5) Inspection of the rented boxes;
(6) Provisions on contractual liability and rent payment, etc.

Therefore, when leasing a container, the lessee should be careful and thoughtful, fully understand and master the characteristics of each leasing company, make full use of the advantages of each company, and sign flexible leasing contracts with multiple leasing companies.

Shenzhen logistics transport containers can be rented and sold

Keywords:

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