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 the lease agreement.
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.
While we do not practice issuance of warranty for the containers, we recommend our users to inspect the units before despatch or upon delivery to report immediately any defects or provide feedback for rectification. We believe in fair dealings and will continue to provide our after-sales support on a case-by-case basis.
Containers are designed to withstand atmospheric corrosion and endure heavy loads and impact. There are various ways to give them added protection and insulation upon request. When maintained properly, they can be used for many years and beyond.