Container leasing industry overview: A guide to current trends [2022]
Understanding the term container leasing
Shipping containers are considered superheroes of global trade and economy. And rightly so! Nearly 90% of international trade is done by sea, and without these containers, shipment of cargos across the globe won’t be possible.
As the shipping industry expanded, the demand for container boxes also blossomed. Over the years, container leasing became a popular concept in the shipping industry.
Being an integral part of this business, you’ve come across people who prefer buying a container for their shipments. But there are also those who feel that leasing a container, especially for a short-haul journey, or one-way shipment is beneficial.
Container leasing is so popular that the number of containers owned by carriers is almost equal to the containers leased from leasing companies.
Today, container leasing is an essential part of the shipping business. So, before we go ahead, it’s necessary that we first understand what exactly container leasing means. Let’s find out.
What is container leasing?
Container leasing is the business of renting containers for shipping and storage purposes. There are a dozen leasing companies offering containers on lease to various shipping companies, organizations, and also individuals. And makes containers mostly available on short-term, long-term, and one-way leases. The terms and conditions depend on the type of agreement you’ve agreed upon, the type of cargo you’re shipping, and the duration of time you need the containers for.
How is container leasing beneficial for you?
Container leasing is most beneficial for you when you’re looking for flexibility for your shipment. Leasing a container is ideal when you want a container for short-term or one-time use. In such a situation, leasing gives you momentary storage and financial benefits. Even if you need a box for a longer duration and don’t have enough cash, leasing can be helpful.
Additionally, there’s no maintenance hassle while leasing a container since everything, including damages, is taken care of by the container provider. Not to forget, you can also enjoy tax benefits in some countries.
When should you prefer leasing a container?
Container leasing is profitable in various ways. Whether you’re in urgent need of boxes but don’t have enough capital to spare or when you’re looking for more control and flexibility over your shipments. Leasing a container is like a bandage to the wound!
But if you’re still wondering when you should prefer leasing a box, we’re here with your answer. Consider the following situations:
- In urgent need of boxes but don’t have capital in hand.
- Not sure how your long-term demands are going to shape up.
- Looking for more flexibility in terms of operations and ownership.
- Looking for a solution when you want to increase your container fleet during a temporary surge in demand.