Supply chain issues arising from the global pandemic created challenges for everyone needing to ship items, especially on the China Europe route.
2020 and 2021 saw containers in China go from an unusually high 61 days in China to a sharp decline which meant caused a different set of problems because as soon as a container was unloaded, it had to be ready for a new move.
At the same time, containers are spending more than 50 days in depots in the US, UK, UAE and South Africa – leading to hefty detention and demurrage charges for shippers with containers in these ports.
The solution to this problem is Shipped Owned Containers (SOCs).
We have invested in 400 Shippers Owned Containers on long term lease which means we have solved this problem for our customers and provide guaranteed availability of equipment, along with significantly reduced costs.
Benefits of Shipper Owned Containers (SOC)
- Increases reliability of equipment supply meaning you never have to worry about XX again and you can control the shipping by selecting the carrier of your choice
– Demurrage & detention costs are no longer applicable.
– If container users exceed the free days granted by the shipping lines, demurrage & detention charges are levied which are often very significant and are difficult to account for as they are a variable cost.
- Demurrage and detention costs per day can cost hundreds of dollars per day per container, according to the Demurrage & Detention Benchmark 2020 and can reduce the profitability of the shipment. With SOC’s, 30 to 45 free days are generally offered with a tiny charge of just a few dollars per day per container, if the free days are exceeded.
- Further cost reductions
– Lower ocean freight costs
– Lower port fees
– Discounted freight rates are available from some carriers significantly below the spot market rates.
- Greater control over inland trucking which can create even more cost savings o trucking rates because SOCs are independent from the shipping lines in terms of equipment type, quantity, and container condition.