The shipping industry minimises consumer investment by giving the option to rent shipping containers for cargo transportation. The logistics industry revolves around shipping containers and intermodal transport to boost trade and the global economy. Consumers often struggle to transport multiple varieties of goods and find it confusing to either rent or buy shipping containers. While buying is a one-time investment, it is also a one-time decision that is expensive. Companies offer container buyback services if you want to sell back the container that was bought earlier. While in the case of container leasing, customers have an option to choose a different container on the same agreement if their cargo needs to change. It is also cost-effective as compared to buying. Therefore, consumers opt more towards renting containers than buying them.
About shipping containers
The shipping industry is flooded with various cargo containers for international shipping. Shipping containers are colossal corten steel boxes built to satisfy shipping needs and facilitate logistics. These durable, sustainable and cost-effective freight containers provide extra security to transport goods. They are suitable for intermodal transportation and are in high demand throughout the shipping industry. Shipping containers of sizes 20ft, 40ft, 45ft, and 53ft are available in the market. Customers can choose between dry storage, flat rack, reefer, open top, isolated, and special purpose containers depending on their uses and type of cargo.
How does container leasing work?
Container renting or leasing is a widespread business in the shipping industry. The cargo must be loaded into accurate shipping containers for intermodal transportation. For this, companies lend shipping containers to customers for negotiable prices and for a fixed duration based on the chosen agreement. After completing the necessary papers and making the delivery, the lessee can conduct business as usual. When the agreement expires, it can either be renewed or the containers must be returned to the leaser. Stakeholders and customers are always looking to find cost-effective, durable and suitable cargo containers to cater to their cargo’s needs. As a result, many shipping container companies provide container leasing services to facilitate the logistics industry and maintain the overall supply chain.
Container Leasing Agreement
To meet customer needs, shipping container firms have created a variety of container leasing agreements. The types of agreements include finance, master, long-term, short-term, and one-way leases. These agreements vary based on the duration of leasing, the status of container ownership, and the cost of leasing. The leased containers may be exchanged for newer ones if the consumer needs changes. Depending on the type of agreement, the party responsible for the repair and maintenance of containers is assigned. Leasing agreements make it feasible to rent shipping containers without much hassle.
Benefits of container renting
- Multipurpose – Customers rent containers for shipping and storing goods. Many containers are converted into inventories for storage since they are sturdy and provide security from external weather conditions. Depending on the need, companies rent containers of different sizes and types.
- Customisable – The shipping containers can be customised according to shipping or storage needs. Most suited for storage are the 53ft shipping containers that can be easily modified to suit customer requirements for storage. Used shipping containers often require modifications to restore their condition and make them appropriate for shipping.
- Maintenance and Repairs – An additional advantage of renting shipping containers is that the lessee does not bear any extra costs for maintaining the container under many agreements. The leaser usually carries out the repair of any rust, dents, wear and tear.
- Secure – Built with corten steel and safe locking systems, the shipping containers provide cargo security and reduce cargo theft risks.
- Flexibility – There are different types of containers available in various sizes. Customers can choose based on the type of container leasing agreement that suits them. Shipping containers can even be exchanged for new types of containers based on the updated requirement.
- Short-term use – Container leasing is an efficient way of acquiring containers for a small duration. Customers with changing needs should opt for it. The lease can also be extended to make shipping feasible for customers.
Process of obtaining shipping containers through container rentals
Companies extend container rental services to help consumers secure the correct container fleet. Since the container is rented, customers need not invest large amounts in acquiring shipping containers.
- First and foremost, know your cargo needs to select from the pool of shipping containers available.
- Go through a list of shipping container companies to contact them and find the one that matches your needs and budget. Ensure that the provider is a credible and reliable one.
- Negotiate the prices and terms and conditions of the lease accordingly.
- Decide on the nearest container depot to deliver the fleet and verify the address. Discuss and finalise the date and time of delivery as per your needs.
- Ensure all the paperwork is legally handled and handed to you.
- You can verify the state of the rental container by asking the provider for photos and videos of the containers. An on-site visit for container inspection would be better.
- On the day of delivery, you will receive a call to notify the arrival of your order.
- The delivery is made mostly via trucks, and the containers are then shifted to the storage site.
- Perform a thorough inspection of the containers. In case of any damage or issues, report to the delivery agent or provider.
Shipping container rentals are a flexible means of owning container fleets without investing hefty amounts. Container leasing agreements make it easier to rent shipping containers.
LOTUS Containers provide premium shipping container service across the globe. We offer secure and cost-effective container leasing, selling and buyback services.