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Container Leasing

Updated: Oct 6, 2021

What is container leasing?

Container leasing refers to a form of leasing in which container leasing companies and lessees, generally liner companies, railways, road transport companies, etc., sign agreements to lease containers to lessees for long or short periods.

During the execution of the agreement, the cabinet shall be managed and used by the tenant, and the tenant shall be responsible for repairing and maintaining the cabinet to avoid losses.

After the expiration of the agreement, the lessee will return the luggage to the storage yard designated by the leasing company. The storage yard shall repair the damaged boxes by the technical standards stipulated in the agreement, and the repair costs shall be borne by the lessee. According to the agreement, the lessee pays the box fee and rent to the leasing company. Container leasing is a long-term and stable profitable business, so it is favored by container investment enterprise. Many container investment enterprises will focus on direct investment with stable cash flow, long-term growth potential, and low to medium level of risk.

At present, most major container leasing companies in the world invest in European and American funds. The box leasing business has developed rapidly, and the box volume of the box leasing company has always accounted for more than 45% of the total box volume in the world.

Singapore Neptune Global Logistics, formerly Neptune Logistics Group Container Operation Management Center, headquartered in Singapore, relying on the group's professional and extensive container leasing services to help customers and partners overcome long physical distances and simplify the delivery process of goods. Our service extends from the sea to inland countries such as Mongolia, Central Asia, and other CIS, Europe (mainly EU 27 countries), Russia, Vietnam, Southeast Asia, and other countries, providing one-stop container leasing and intermodal container services in inland countries.

Neptune has leasing of container equipment and can provide you with refrigerated containers, solutions that protect goods, improve service reliability and help our customers reduce their carbon footprint while increasing profitability.

Lease of container can be divided into three types:

1. Time rent The time lease of containers is divided into long-term lease and short-term lease. Long-term leases generally refer to a longer lease period, while short-term leases lease containers based on the required period of use for a relatively short period of time.

2. Voyage rent The voyage lease of containers includes one-way lease and round-trip lease. Among them, one-way leases are mostly used for the unbalanced supply of goods on the same route, that is, one-way use of containers from the port of departure to the destination port; round-trip leases are usually used for routes with a relatively balanced cargo volume for the round-trip.

3. Flexible lease The flexible lease of containers is similar in cost to long-term leases, and similar in use to short-term leases, and can be used flexibly. The lease term of this lease is usually one year. In the case of large container freight volume, many operating routes and unbalanced round-trip freight volume, this leasing method can be used to easily adapt to changes

Advantages of container leasing

The container leasing business provides services for the container shipping industry. For liner companies, renting containers has the following advantages compared with self-purchasing containers:

1. Avoid instant moments of huge funds

The price of the container is very expensive, and the price of a 20-foot container is more than 1,800 dollars when it leaves the factory.

If a liner company needs to open container routes, shipowners often need to bring thousands of containers, and a large amount of money is needed to purchase containers. With a container rental company, it is enough to rent containers with a small rent.

2. The convenience of global container leasing and return

The liner company's demand for container is changing and unbalanced.

Only the rental company can do the global container return, which solves the problem of the container of the liner company.

3. Supply guarantee for container demand locations

No liner company can have container storage at any of its demand locations, while container leasing companies can relatively meet their requirements and guarantee the supply of containers as much as possible.

For 19 years, Neptune Logistics has operated many intermodal equipment projects with a professional team and rich experience. Neptune has global fleet of intermodal equipment, we will provide you with and develop the most perfect solution according to your cargo and requirements. Feel free to contact us!

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