About shipping containers
Container leasing is similar to any other leasing such as leasing a vehicle or property.
The end user, or lessee,which could be a Shipping line, NVOCC, Forwarder or anyone else who needs containers for their transportation or storage requirements enters into an agreement with the leasing company, or the lessor.
The lessor agrees to hand over containers to the lessee, with the understanding that the containers will be picked up by the lessee, used & subsequently returned at any one of the predetermined locations.
The per diem (day) rate, minimum period of use, along with other terms & conditions are documented within the terms of theAi??lease agreement.
40’GP is a standard box with 40ft length and 8ft 6 inch height
HCGP is 40ft length but its height is 1 feet more than 40’GP (9ft 6 inch)
All other dimensions remain same. With the height increase, the cubic capacity increases from 68 CuM to 76 CuM
Shipping Lines & NVOCCs prefer to lease boxes, even if they do own containers, because:
Leasing provides flexibility in use of container equipment for the period that you need it The containers can be picked up when needed & off leased when no longer required.
The user is not saddled with huge cost of equipment.
In other words leasing:
Avoids high capital expenditure at the beginning stage of your business / during the trial run / temporary needs.
Avoids locking up cash flow needed to run the day to day business.
Provides flexibility in operations – owned container stock is not easy to get rid off when not needed.
It is the repair and maintenance standard for containers internationally agreed by users ( shipping lines, NVOCC’s , other users ) and Leasing company.
IICL ‘Institute of International Container Lessors’ it is an international agency based in USA which specifies repair and maintenance standards and methodology to ensure safety while the container is in use. ( www.iicl.org ).
CW ‘Cargo Worthy’ a repair Standard used by shipping lines / NVOCC for their in house service. Eg. When a container comes as import into a port, they need not follow IICL standard as it may be expensive and not required; the container may just require repairs to the extent to a level where the cargo is carried in the container safely and securely.
WWT ‘Wind and water tight’ mostly used by leasing company for the older equipment when they want to dispose or sell. Generally ‘WWT’ is a little lower standard than ‘CW’.
All the technical details of a container like Manufacture date / CSC reference / Internal and external dimensions / cargo carrying capacity / Intermodal requirements like TIR and Wood Treatment
In general, any container used for international transport must have a valid safety approval plate or “CSC plate”. CSC is the abbreviation for ‘Container Safety Conventionai??i??. The CSC certification is normally valid for 5 years and has to be updated continuously after inspecting the container.