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Leasing of containers Pan Asia


Master Lease is a general agreement signed between the suppliers and Shipping lines. It may or may not specify the lease period or quantity but will have all the Commercial and General Terms.

This is a commonly accepted practice in the container leasing industry. Master lease agreements are only a preparation for the event when containers may be required. There is no obligation for the lessee to actually lease or pay any charges unless the containers are taken ‘on hire/picked up “.

The charges are only payable from the date of use of equipment. It is common to sign agreements anticipating requirements even though they may not be put into use. However, having an agreement in place ensures quick mobilisation and on hire without having to rush through the credit process, agreements of terms etc.

“Caps” is a location wise per month limit given to the customer for off-hiring containers.

The “Caps” are based on two criteria:

The total volume on lease

The pickup locations

Drop off charge is the cost that applies at the time of off-hiring a unit. This is to compensate on the container idling cost incurred due to the repair cycle.

As per contract, the customer is obliged to return the containers in IICL condition. But since leasing companies accept containers back in the depot in ASIS condition, they are effectively stopping the rentals early and bearing the storage cost on the customers behalf during the whole repair cycle. Hence the DOCH.

The leasing company sometimes gives incentives in the form of credit to a lessee when they pick up a container from a very bad location (i.e., where containers are idling with no prospect for lease). Hence ‘PUCR’ is paid to the lessee for helping move containers out of such locations.

In the case of leasing company containers multiple handlings are done by the depot to carry out repairs from off-hire- offhire survey/ re-survey when disputed/ taking to repair stack, repair/ on-hire survey to loading. So most leasing companies just agree on one handling charge to cover these multiple internal handling unlike shipping lines that pay per handling activity.

All lessees are obliged to take an insurance cover for the equipment on hire to them for total loss and public liability.

This is a cover taken by the container user for third party liability. This could be damage that occurs in transit where there is damage to the public or property etc.

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