UNIT 4

CONTAINER TYPES AND BUSINESS

 Container manufacturing trends – 

Container leasing business – Leasing a container is more costly than ownership
from an operational standpoint, about 60% to 70%. Still, there is a large leasing
market with about 40% of the global fleet of containers is owned by leasing
companies. This confers flexibility and some leasing arrangements enable the
lessee to leave the container back to the leasing company at its destination. If
there is a surge in the demand, a carrier can lease containers instead of buying
them, particularly if the surge is expected to be temporary. Leasing arrangements
come into three major categories 
Master leases. They are also called full service leases or container pool
management plans and involve a complex and comprehensive leasing
arrangement where the leasing company assumes full management. This entails
a set of conditions regarding the availability of containers and an accounting
system including debits and credits between contracting parties depending on the
condition of equipment at the time of interchange. The leasing company is
responsible for the full management of the container fleet (maintenance and
repair) and for repositioning following off hire and contract termination. In many
ways the leasing company acts as a logistics service provider since it must
allocate the distribution of its container assets in view of the transportation
strategies of the lessee. Thus, it must insure that an adequate supply of empty
containers is made available for their customers as pick up locations.
Long term lease. Also called dry leases and are commonly associated with the
extended use of the leased container by an ocean carrier. This lease normally
follows the purchase of new containers by the leasing company and they do not
involve any management service by the lessor. The goal the leasing company is
to amortize its investment over the lease period which covers about half of the
useful life of a container.
Short term lease. Also called spot market leases since the lease price is strongly
influenced by current market conditions pertaining to the volatility of supply and
demand. Such arrangements commonly take place when there is a temporary
surge in the demand, either cyclical or unforeseen. Because of its volatility
leasing companies try to avoid having a large share of their equipment on the
spot market because of the risk of having idle containers, but realize that such a
condition is unavoidable. Still, with careful planning, containers can be
positioned to take advantage of local or regional surges in demand.
The recent trend has involved a shift from master leases to long term leases,
particularly because of acute imbalances in containerized trade flows, such as
between Pacific Asia and North America, which required the long distance
repositioning of empty containers. Under a master lease agreement, these
repositioning costs have to be covered by the lessor. With a long term lease
agreement, repositioning is assumed by the lessee. Leasing a container costs
between $0.60 and 0.80 per TEU per day depending on local conditions of
supply and demand

 Container leasing-Definition
An agreement between a shipping container owner (lessor) and a consignor
(lessee) that describes the terms associated with a temporary lease of a container.

Container leasing involves entering into a working agreement with a container

supplier. The supplier agrees to deliver a minimum number of containers to the
client, with the understanding that the containers will be used for a specified
time and at a rate documented within the terms of the lease agreement. Both the
supplier and the customer will also agree to other terms and conditions required
by applicable laws, and any other negotiations made between the two entities.
 Benefits /Advantages of container leasing
1. Flexibility
One of the main benefits to container leasing is the flexibility that is often built
into the lease agreement. Often, suppliers and clients agree upon a minimum
number of containers to be in the possession of the client for the duration of the
lease. However, additional containers can be requested and delivered for use
when and as the customer needs them. It is not unusual for discount leasing fees
to be applied to those extra containers. As a result, the customer only keeps what
is needed on hand, but has immediate access to additional containers with only
minimal expense involved.
2. Storage
Companies also find that a container leasing arrangement helps to eliminate the
need for upkeep on the containers themselves. While customers are expected to
take reasonable care of the containers, most container leasing companies realize
that normal wear and tear does take place. Customers can turn in older
containers for newer ones from time to time, often without any changes to the
terms of the leasing agreement.
3. Customer Access
It is not unusual for a container lease to provide customers access to more than
one type of container for shipping purposes. A given contract may establish the
ability of the client to enjoy tank container leasing privileges along with the
standard storage container lease that is common for units constructed for use
with dry goods. This arrangement tends to work well for companies that import
and export goods from various continents, or that sell both solid and liquid
goods.
Providers sometimes include provisions in their container leasing agreements
that make it possible for customers to receive discounted pricing should they
choose to purchase a minimum number of units. This provision is helpful for
companies going through an expansion that makes it more feasible for the
business to own and operate their own transportation network rather than
outsource those functions. Often, the cost per unit is significantly less than
purchasing containers from a new vendor.

4. Outright purchasing of containers requires huge capital financing, which will

not be viable for the shipping
    companies, by leasing capital funding could be avoided.

5. It will be easier to adjust the fleet size depends the demand fluctuations.

6. It is possible to enter into lease agreement in such a way that the repair and
maintenance expense is on
    lessor’s account . This reduces the overhead expense of the liner.

7. To reduce equipment imbalance cost by leasing containers at the deficit area

and returning them at surplus
    area.

8. By lasing special equipments, whose demands fluctuate very often, can avoid
dead capital investments on
    buying them.

 Types of Leases
Though the operators make ‘tailor made’ agreements with the leasing
companies, there are 3 broad type of leases widely in practice

1. Long term leases

In this method the operators commit to lease a fixed number of containers for a
fixed period of time, which varies from 1 year to the life span of containers. The
longer the period of lease the cheaper the rate is likely to be as the leasing
company is guaranteed a fixed income for a long period.

However , from the liner’s point, long term lease reduces the flexibility of
resizing the fleet size by redelivering the lased units during slack period. To
overcome this, some operators include a clause of redelivery before term period
a penalty.
2. Short term or Trip lease.
As the name indicate , this is hiring of containers on an ad-hoc basis , just for a
trip without any long term commitment. This leasing method gives operators
maximum flexibility on fleet size adjustment depending demand.

For leasing companies, this is not that a good option as the hire charges will be
for short period and then will have to find fresh customers for the containers.
Also they will have to maintain a good stock of containers readily available for
leasing and will have to incur high RnM and on/0ff hire expenses.

Trip lease generally is an expensive affair , often the rate will be more than
double of the long term lease. This is due to the risk/ uncertainty involved in this
business.

3. Master leases
In this type of leasing , the lessee guarantees to lease a fixed minimum number
of containers for a defined term with a provision to on hire additional containers
and off hire excess containers at listed locations . However, the total number of
containers on hire at any given time should not be below the agreed minimum.

The lessee pays a fixed daily rental for all the containers on hired . The rate
generally is on higher side consider to the term lease of equal period. This
method helps operator to regulate fleet size according to requirement . Also ,
with suitable on /off hire clause in the agreement , the operator can avoid
unnecessary empty container moves from one point to another.
 Major container leasing companies
A.P. Moller–Maersk Group. ...
Mediterranean Shipping Company S.A. ...
CMA CGM Group. ...
China Ocean Shipping (Group) Company (COSCO) ...
Evergreen Marine. ...
Hapag-Lloyd. ...
Hamburg Süd Group.
 Maintenance and repairing of containers

Maintenance

1) Inspect the container on a regular basis. 

Even twice a year is great, but as often as you’d like.   It takes some time for
problems to get serious, but catching things early is always good.  When you are
inspecting the container, look at the floor to make sure they are in good shape. 
They will eventually need to be repaired (see below).  Look at the walls, roof
and doors to see that there is no rust developing that seems concerning.  When it
does, you’ll need to do repairs (see below) and check out the seals on the doors. 
They should be firmly attached to the doors and close into the doors well.  If not,
see below for how to repair them.
2) Painting containers.  
Containers are made of steel and steel rusts.  One way to delay that is to keep
your container painted.  We recommend an industrial alkalyd enamel.  You can
find it at Sherwin Williams or anywhere that sells industrial paints.  The paint
should not cost much more than standard outdoor paint.  To paint your container,
give it a good wash to get all the dirt and oil off.  If there are any rust spots that
have you concerned, grind those off right before painting.  If your container still
has shipping line markings on it, you may want to consider pulling those stickers
off of the container as well.  Once the container is prepped, either use a roller or
a sprayer to apply the paint.  Often container yards will only paint the sides, but
you may want to also paint the roof.  The paint suggested as a nice shine to it and
that should last 10 years if the container is not moving around.  For containers
that move around (like in a rental fleet), they will need to be painted more often.
3) Roof rust prevention.  Roofs get the most moisture and are most likely to
have issues first.  Some people like to protect roofs.  There are several ways
to do this – applying mobile home roofing tar or other similar products. 
There are some fancier options now as well, depending on how much you
want to spend.
Container floors are made up of sections screwed or riveted to the cross-
members

Repair
1. Doors aren’t shutting right.  This is the most common problem in
containers.  The reason is that if you load your container, it can shift the way
the container is sitting on the ground ever so slightly.  Just ¼” can make
opening the doors trickier.  The easiest fix to this is to either readjust your
blocking or add a little blocking under your container.  You can lift up one
corner of your container with a car jack.  Once you have the container lifted,
rearrange your blocking (or slip some under there).  Be careful not to put
your hand under your container in case your car jack slips.  We recommend
wood blocking if you don’t have any.  Once you adjust a corner or two, the
doors should open more easily.
2. Floors need repair.  The flooring of your container is made of plywood. 
The good news is, this is easy to replace.  They have treated plywood to
prevent moisture from coming through, so we recommend using that as well. 
The flooring sections are attached directly to the cross-members under the
floor.  If you look at your floor, you will see where they are attached. 
Carefully remove the flooring section and rivet or screw in the new piece,
depending on how your flooring is attached.  Be sure to get the same
thickness flooring so your floor stays level.

3. You have a hole in your container.  This is a biggie.  You can’t let it be or it
will get things wet in the container.  If it is a small holes, you can simply
weld it shut.  This works best for pin holes.  However, if you have something
bigger on your hands, then you will need to cut out that section and replace it
with more corten steel.  Chances are you don’t have that laying around, so
you will probably have to call the company who sold you your container to
see if they have some they can send you.  Also, this repair requires cutting
and welding skills.  If you do not have them, hire a welder to do this repair
for you.  The area with the hole needs to be cut out, a new piece added in and
welded into place to seal it up again.
Your door seals or lockrods are broken.  It will happen eventually that you
need new door seals.  You can get door seal kits that fit perfectly on the door. 
You just take off the old seals and put on the new one.  If the lockrods (the piece
that goes the height of the door) can bend or break.  Those also can be replaced
as well as the keepers that lock the lockrod in place.  If you need help with any
of these container parts, let us know.

4. Door seals, lockrods and keepers can all be replaced

This doesn’t solve every problem, but it should cover the most common
problems people have with containers.  If you need more help with your repair,
give us a call and we can try to walk you through a solution or help you find a
way to get your container fixed.
 Tracking of container movements – 
When you track and trace your container, you insure the security of the container
and here, you automatically curb the possibility of theft of your container
occurring. This will also reduce the diversion of containers.
There has always been the need for many physical escorts to follow the
containers in situations where the trust between the conveyers and the owners of
the containers are not too strong. With the tracking and tracing system, the need
for this is eliminated.
Another thing you will achieve by tracking your container shipping or rather
reason why you must track your container is that it makes the movement a
reliable one, in the sense that there will be uninterrupted movement of the cargo.
You also track containers for visibility because the tracking systems will aid you
to have updates on the live locations of all journeys and assets. It is always good
to have the possibility to track you container through an online monitoring
system.
It also makes for efficiency, because you would have eliminated some form of
cost routing. It also improves the transit time. 
The cost of fuel is reduced, revenue streams are increased and most importantly,
insurance costs are reduced or even eliminated since you have the destiny of
your container seemingly in your hands through the tracking.
However, there are many container tracking and tracing methods out there, and
they come with different technologies.
TAG security alerts
This is one of the most used container tracking and tracing systems. This system
involves the placing of tags on the containers to give proper information to the
owner about the whereabouts of the containers in question. The security alerts
that come from the tag system will sound when the tag is tampered with, when
there is a missing read, when the tag is armed and when it is armed outside. 
Again, you will get alerts when the container is authorized for unlock, when the
tag is unarmed, and when the tag is not deactivated.  When the container is en-
route its destination, you will get such alerts as the origin of the departure. You
will also be alerted when the container stays longer in a particular destination,
when it deviates from the original route, when it changes direction and whenever
it arrives to its final destination. Things like low battery, vehicle moving while
the engine is off and the disconnection of the IVM will also give you alerts.
TAG security alerts tracking and tracing solution is at the moment most
commonly used when shipping to Australia from UK.

Intelleflex container monitoring and tracking system
This is another cost effective system for the monitoring and tracking of
containers. It has proven to be effective in the past. This is mostly used on the
ports. Here, the Intelleflex RFID readers are placed at all the key points in the
port to give accurate information on which containers that are leaving and the
ones that are entering the port. The locations of the containers in the ports are
also ascertained with this. They are developed with a sort of on board memory
that enables them store and access e-manifests wirelessly from the tag. They are
designed with batteries that last for four years. And, you can read the tag in
distances of more than 100 meters. They come with the capacity to withstand
outdoor temperatures, etc.
AGAM-1 and AGAM-R tracking solution
AGAM-1 is another tracking method. This is borne out of a rigorous research
process. The result is this small device which has been described as ingenious.
The good thing about this is that it is installed in the container like a container
vent and therefore looks invisible.
The trick here is for you to replace a normal vent with this and nobody will
notice it. The good thing about both the AGAM-1 and its AGAM-R counterpart
is that it reports to your cell phone. You can send commands to this through your
cell phone and receive updates from it on your cell phone.
Another method is the use of a blAGAM-1 and AGAM-R tracking solution
Another method is the use of a black box that tells you everything about your
container and its location. This goes to the extent that you will know all the
people that enters and leaves the container, and the temperature of your container
at any given time.
The INTTRA Container Tracking
This a web based tracking system. This gives you six different indices for all
shipped containers. These include the date of receipt, vessel it is loaded on, the
day departed and day arrived. You can access all this information through a web
interface. The most important things you will get to know from this includes the
container number, vessel, voyager number, bill of laden, trading partner, carrier
name, purchase order, 180-day date range,  latest location, latest event, etc.
 Container interchange.

An interchange is the process of moving an otherwise idle cargo container from

a location that has a surplus of container inventory to a location that has
container requirements.
IAS InterChange allows InterChange enables container owners and operators
such as ocean carriers , equipment lessors and NVOCC’s to interchange
equipment in surplus and deficit locations. Clients provide IAS with details of
their equipment inventory and IAS’ experienced brokers use the data to create
matches between equipment suppliers and receivers in order to avoid costly
repositioning. A dedicated team leverages IAS’ technology, over a decade of
interchange brokerage experience, and extensive contacts within the shipping
industry to identify mutually beneficial opportunities. The team then provides
end-to-end transaction support from offices in Europe, Asia and the Americas.

With InterChange, customers in need of equipment to fulfill shipments enjoy

free use of containers as long as they are returned to the specified return
location/s within the given free days. On the other side of the transaction,
suppliers with empty containers in a surplus location receive their containers
back in a demand location. The interchange is mutually beneficial as one
customer receives a container to fulfill immediate customer demand while the
other receives a low-cost equipment reposition. This drastically reduces the cost
of moving empty containers for both customers.  

Key Benefits:
Access the world’s largest one-way interchange network
Save money by improving container utilization and balancing supply and
demand
Track and manage equipment via the web
Increase profits by using containers free of charge
Cut empty repositioning costs, including drayage, handling, and ocean freight
Steer containers to approved return locations where there is demand
Leverage a capacity network of more than 100 equipment operators
UNIT -5
MULTI MODAL TRANSPORT
Shipping containers are extensively used in the shipping industry for
transportation of cargo. However, just as viable they are in their area of
operation, these highly useful equipment have been known to be recycled and
used in several innovative ways outside the industry as well.
A brief description of 26 such fascinating utilization of reprocessed shipping
containers from across the world has been mentioned below:
1. Theaters and Bistros: 
Reprocessing inter-modal containers into open theaters and bistros have become
a popular trend in many places.
Although the longevity of such structured theaters and bistros isn’t that much,
they provide a recreational atmosphere even in their short utility time-frame.
2.  Schools: 
In the poorer parts of the world where constructing a traditional building for
schools can be expensive, using containers for classrooms have become a
noteworthy trend.
By using renewable forces of energy, these classrooms seek to provide the same
quality of education as any other developing nation in the world. Here’s is a
beautiful example of a shipping container classroom.
3.  Restaurants: Using reprocessed inter-modal containers as base structures for
restaurants has become a very fashionable trend presently.
The Muvbox restaurant in Montreal, Canada is an excellent example in this
regard, as are several other unique such restaurants found across the globe.
4. Shipping Container Homes: Using cargo containers to build spacious and
large homes is yet another fantastic alternative that has been developing in the
past decade. Here’s is an example of solar powered shipping container house.
5. Hotels: Cargo containers have also found an alternate niche as base structures
for hotels in many parts of the globe.
Such reprocessed shipping containers hotels are either transportable structures or
are constructions permanently established in one location.
6. Workshops: Lack of space at homes for work-related privacy has resulted in
the trend of using inter-modal shipping containers as alternative workplaces.
The ideal build of the containers perfectly aids to the requirement of
professionals using these transformed marvels, thus proving to be worthwhile.
7. Offices: Space constraints are a common problem in many countries.
Reprocessed shipping containers have been effectively used to tackle this
problem by architecturally modifying them as convenient and spacious office
buildings.
8. Emergency Hospital: Like an ambulance but something so much more
Altering shipping containers into hospitals like movable homes is truly a master-
class aspect of contemporary engineering.
9. Portable Toilets: Reprocessing inter-modal shipping containers as movable
toilets are a common sight to see in many countries.Convenient features, such
movable toilets help to maintain sanitary and hygienic surroundings at all times.
10. Stores: State-of-the-art commercial establishments are the present-day trend.
Adding further viability to these trends is the adoption of shipping containers as
lucrative base structures for such high-rising commercial attractions.
11. Studios: Shipping containers also make for awe-inspiring studio workshops
customised to reflect the uniqueness of the professional using it.
12. Art Gallery: Reprocessing cargo containers into brilliant art galleries are
also growing in many places.
Such art galleries and display centres are fully refurbished to highlight and
emphasise the creativity displayed within them.
13. Sauna: One’s own personal relaxation haven, variety doesn’t come in better
forms than the container-modified-sauna.
14. Disaster Shelters: For people displaced from their homes on account of
natural calamities and accidents, re-modified cargo shipping containers serve as
the best structures to function as temporary shelter houses.
15. Cafes: Another brilliant usage of recycled shipping containers is that of
coffee bars, providing much needed caffeine sustenance to coffee-lovers.
16. Swimming Pools: The rectangular cargo containers make for superb pool
facilities both with their originally-constructed length and depth.
17. Laboratories: The structure of a cargo shipping containers also helps in the
setting up of laboratories for academic usages in the poorer and under-developed
countries.
 Marketing of used containers
Marketing of used containers –
Used Container for storage
Used storage containers are cargo containers that have been retired from
shipping service and can provide cost effective long-term secure storage. These
containers built of steel, made to carry 30 Tons of cargo, can be stacked 9 high
supporting loads of 270 Tons on top of them. Used shipping containers available
on the market are usually around 10 to 15 years old. If they are to be used for
storage, containers are about as solid as you can get. No pre-manufactured shed
will ever protect your goods as effectively as a solid second hand container
which has been checked to Wind and Water Tight (WWT). Purchasing a used
storage container will give you the most cost efficient and quick solution to your
storage problem, and help you keep your budget in check.
Used Container for shipping
If you need a used container for the shipment of cargo we recommend that the
container be certified or checked to Cargo Worthy (CW) or IICL . This container
much like the storage container will be submitted to a thorough survey in order
to make sure that it is Wind and Water Tight (WWT). Special attention will also
be paid to the under-structure in order to make sure it can be lifted with a full
load of cargo, thus making it Cargo Worthy
 Carriage of shipper owned containers
Carriage of shipper own containers –
In recent years, we have witnessed an increase in SOC requests from shippers,
NVOCs, and Forwarders alike. We found that many people are unfamiliar with
the benefits and challenges of SOCs. The information below is intended to
provide general background on the why, when and how of SOCs to ensure
maximum cost savings and operational flexibility.
There are a variety of reasons for which you may want to use an SOC, but the
main reason is usually COST savings. Here’s how:

a)       Equipment Scarcity

Shipping lines are usually pretty good at making equipment available in ports. In
a country the size of the USA equipment supply at inland locations can be a
challenge. In some cases, distances between loading point and the nearest point
of equipment availability can add substantially to your freight bill.
Sourcing containers closer to your cargo loading point, can generate savings on
trucking. You may still want to use chassis for some local trucking, but by being
in control of your trucking, you would also have the option to use flatbeds on
longer distances avoiding costly equipment repositioning charges.
These savings will go towards offsetting part of your container purchase costs.
The added advantage is, since you control the equipment, you also control who
you ship with.
b)       “Special” destinations
Most cargo goes to “regular” places, and others don’t. It could be an exotic
destination like Transnistria (yes it does exist !), or a more traditional landlocked
country like Rwanda, or a warzone such as Iraq and Afghanistan.
The imbalanced flow of cargo at these destinations creates large equipment
surplus for all shipping lines, resulting in equipment sitting idle for prolonged
periods of time. For such destinations, most lines should be more than happy to
offer a discount to shippers using an SOC.
Most lines calculate their rates based on containers being returned to the nearest
port. Landlocked countries, with significant trucking or rail transport are
therefore usually good destinations for SOCs as the savings on the return
trucking can be substantial. Have you ever wondered what it cost to return an
empty back from Kabul to Karachi ? If you do, that cost alone is usually enough
to justify purchasing your SOC.
In spite of all this logic, some lines do not offer discounts for SOCs, and some
do with an added “fee” for the extra work an SOC will give them as it deviates
from standard procedures. There is always room for discussion, and generally a
bit more room for improvement.
c)       Demurrage / Detention Savings
How much time do you need to load your container ? How long will it take to
clear customs ? How far do you need to truck at destination ? How long will the
consignee need to un-stuff it ? In container shipping, time is money.
The answer to every one of these questions can translate into immediate savings.
With demurrage and detention rates that can quickly escalate to USD 20.- / 30.-
or more per day, can justify investing in an SOC. 
1.       Sourcing SOCs
These can be new or second hand, it only depends on how much money you
want to spend. In most cases, a second hand container is more than enough. 
2.       Quality
Containers will either be NEW (or close to), generally implying less than a year
old having done a couple trips, or second hand. If you are going for a second
hand container, you will need a CARGO WORTHY container. 

A Cargo Worthy Container needs to have 2 main requirement: 

1) it should be wind and water tight (steel repaired is best), 
2) it should have a “valid” or current CSC (Container Safety Convention).

The CSC sets the container quality standards for safe transportation use. A
container with a current CSC should live up to its original design capability in
terms of stacking, racking, and Payload. The CSC inspection should assure– if
done properly –the structural integrity of the container. Some people might try to
upsell and offer IICL (International Institute of Container Lessors) Equipment.
IICL and CW fulfill similar criterions, but with different levels of scrutiny. An
IICL criterion is stricter and the containers are generally better than CW (Cargo
Worthy), but for most shipments it won’t make a difference.
Many shippers pay attention to cosmetics. We could spend hours discussing how
important that is, but the truth is a good looking container does not guarantee it
will hold the load. Surface corrosion can be ugly, but it will not undermine the
structural integrity. One would be extremely surprised at how much real rust a
fresh coat of paint can hide. In the end, cosmetic is based on personal
preferences, but just like “we should not judge a book by its cover”, we need to
look beneath the paint of a container.
3.       Prefix
All containers require a unique prefix and serial number for tracking, used on all
shipment and custom clearance documentation. The prefixes are usually attached
to a line, or asset owning entity, but do not constitute a title to the container
(owner’s name is usually listed on the CSC plate). 

The two things one must ensure are 

1) that the prefix on your container is valid and registered with BIC (Bureau
International des Conteneurs), and 
2) that it is not a prefix of the line you are shipping with.

The Custom Convention on Containers requires containers to carry a registered

prefix to be able to carry goods under customs seal.  There are a few countries
(notably Former CIS countries) where customs will only clear containers with a
prefix registered with the BIC. While XXXU and NONU are often used, they are
not registered prefixes. Although these prefixes often work, there is a risk of
having to re-prefix a container while in transit under a BL and the control of
customs on the other side of the world, and that can be a costly and complicated
exercise.
While shipping a container as an SOC with a line whose prefix is on the
container, it could happen that the computer systems are not updated in time to
recognize the unit as an SOC. This could result in tariff problems or improper
container handling at destination and returned to the line by the consignee.
Having an SOC inspected is a good idea. Although all container depot operators
do their best, they are subject to human error. We have all had containers
reported as CW and that ended up not. Whether due to undetected roof or floor
damage because the container was not internally checked, or due to system error;
you need an inspection. Many lines now request SOC containers to be
accompanied by a surveyor issued CW Certificate.
Many sellers will offer to supply the container and the certificate. Although it
can make life easier, it is entirely up to firm to decide whether it want the person
selling you a container also responsible for guaranteeing its quality. If firm
decide to go that route, it is a good idea to ask for a “third” party survey, and to
make sure that the surveyor is IICL certified. If shipper decide to organize its
own survey,  many surveyors can be found on the IICL website.
Transporting  SOC
Once you have sourced its SOC, you will need to arrange pick-up and loading,
and the delivery to wherever you are shipping from, whether the rail ramp or the
terminal. In many cases, the container seller will be able to help organize these
transports. You will also find for short distances, the shipping line has a house
trucker who they can refer you to.
On some occasions, this aspect of an SOC can be a good source of savings. If
loading inland and having fair distances to cover, transportation brokers can
often arrange ‘One Ways’ with flat beds. Chassis operated transport is usually
based on round trips, due to the chassis needing to return to its origin and the
trucker driving twice the distance you actually need covered.  Flatbed mileage
costs are usually a little higher, but with no return trips, this could result in lower
overall road transport costs. 
There are however two things to make sure of are: 
1) that its loading date and times are flexible enough to allow time to find a
flatbed, and 
2) that its trucker has a twic card if delivering straight to terminals.
Conclusion
Sure, there is an investment when looking at SOCs, and they do not work for
every cargo, every time, on every route.
The overall reason for using SOCs is the cost savings. These savings can come
in many different forms. First, when facing equipment scarcity in inland
locations, SOCs can lower trucking costs and allow you to control trucking and
shipping with the carrier of its choice. Second, there are savings to be had when
shipping to special destinations with equipment surplus resulting in discounted
freight rates, and inland locations by saving on the return trucking. Third, SOCs
are insurance against demurrage and detention costs as the user will not be
subject to these fees, which can quickly add up at any time.
There are some added difficulties when using SOCs, but nothing its supplier
cannot help you with.
 Multimodel transportation option for containers
Multimodal transport refers to a combination of at least two means of transport.
This results in an integrated transport chain where the strength of each
alternative is utilized. Main characteristics of multimodal transportation are
transshipment terminals that allow efficient cargo handling between short-
distance and long-distance traffic as well as application of standardized and
reusable loading units. However, combined freight transport can be organized in
different ways. In general, trucks cover short distances between the loading area
and the transshipment point respectively between the place of arrival and the
recipient. Long-distance haulage is conducted by other means of transport such
as train, ship or even plane. 
Regarding combined container transport, standardized loading units are
transshipped along different means of transport. In doing so, various
combinations of land, water, and air transportation are applied in practice.
Trailer shipment (rail transport of trailers) refers to a combination of rail and
road haulage. Three different modes can be identified.
The rolling road usually describes carriage of whole trucks – including both
tractor and trailer – on low floor trains. In this regard, the second alternative that
contributes to additional cost savings is forwarding of trailers without the tractor
as it reduces transport weight and labor costs. However, this option requires a
second tractor at the place of arrival. Swap body transport is basically similar to
container transport where loading units are handled by overhead cranes at the
transshipment center.
Roll-on roll-off traffic means the carriage of freight vehicles on ships over a
certain distance. A rarely applied option is LASH-transportation. In the course of
this, an inland water vessel, commonly known as LASH barge, is carried by the
barge carrier – a seagoing vessel.
The introduced multimodal modes of transport basically combine the flexibility
of trucks with economies of scale of such means of transport that are destined for
long-distance forwarding. However, additional handling processes are cost and
time consuming. The benefits of utilizing different means of transport ideally
outweigh or even exceed the expenses. This mainly depends on the distance to
be covered, the efficiency of transshipment points and the goods to be conveyed.
nsurance for containers –
 Container insurance
Container insurance is to offer cover for damage or loss of containers.

The container insurance is based on a Sum Insured, calculated at the maximum

value of the containers as per the declaration made of the owner or lessee.
In case of a loss or damage to a container due to an insured peril the insurance
will indemnify the assured for the value of the container or the cost of repairs.
Typical perils insured:
TOTAL LOSS: Loss of the container. The agreed value of the container will be
paid to the assured.
PARTIAL LOSS: Damage caused to a container, the cost of repairs will be paid.
PARTIAL LIABILITY: The value of the containers salvaged that will form part
as a contribution for general average or salvage. Also including liability incurred
in a collision.
 Strategies for managing container imbalance.
 IAS InterChange allows InterChange enables container owners and operators
such as ocean carriers , equipment lessors and NVOCC’s to interchange
equipment in surplus and deficit locations. Clients provide IAS with details of
their equipment inventory and IAS’ experienced brokers use the data to
create matches between equipment suppliers and receivers in order to avoid
costly repositioning. A dedicated team leverages IAS’ technology, over a
decade of interchange brokerage experience, and extensive contacts within
the shipping industry to identify mutually beneficial opportunities. The team
then provides end-to-end transaction support from offices in Europe, Asia
and the Americas.

With InterChange, customers in need of equipment to fulfill shipments enjoy

free use of containers as long as they are returned to the specified return
location/s within the given free days. On the other side of the transaction,
suppliers with empty containers in a surplus location receive their containers
back in a demand location. The interchange is mutually beneficial as one
customer receives a container to fulfill immediate customer demand while the
other receives a low-cost equipment reposition. This drastically reduces the
cost of moving empty containers for both customers.  

Key Benefits:
1)Access the world’s largest one-way interchange network
2)Save money by improving container utilization and balancing supply and
demand
3)Track and manage equipment via the web
4)Increase profits by using containers free of charge
Cut empty repositioning costs, including drayage, handling, and ocean freight
Steer containers to approved return locations where there is demand
Leverage a capacity network of more than 100 equipment operators