What Is Container Leasing?

Container leasing refers to a leasing method in which a container leasing company and a lessee, generally a shipping liner company, a railway, a road transport company, etc., sign an agreement to lease the container to the lessee in a long or short term. Container leasing is a leasing operating characteristic, and its demand is mainly driven by the growing demand for international trade. In recent decades, the global trade volume has been increasing, and the growth trend will continue in the future. Therefore, the overall demand for rental containers will continue to increase.

Container leasing

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During the "Twelfth Five-Year Plan" period, China's container hot metal combined transport volume will increase by more than 20% annually, and the container throughput of major ports in the country will increase significantly. The demand for road, rail and air cargo transportation will also greatly increase. The development of the container shipping industry will definitely promote the further expansion of the rental container market. At the same time, with the continuous rise in steel prices and the cost of manpower for making containers, the price of containers continues to rise, and the rise of container rents, China's container leasing industry is facing huge development opportunities.

Container leasing refers to a leasing method in which a container leasing company and a lessee, generally a shipping liner company, a railway, a road transport company, etc., sign an agreement to lease the container to the lessee in a long-term or short-term manner. During the implementation of the agreement, the cabinet is managed and used by the lessee. The tenant is responsible for the maintenance of the cabinet to ensure that it is not lost. After the expiry of the agreement, the lessee returns the boxes to the storage yard designated by the renting company. The damaged box is repaired in accordance with the technical standards stipulated in the agreement at the yard, and the repair costs shall be borne by the lessee. The lessee undertakes to return the container fee and rent to the leasing company in accordance with the agreement.

Container leasing is a long-term and stable profitable business, so it is favored by European and American investors. Most of the world's major container leasing companies invest in European and American funds.

The container leasing business is operated by a container leasing company that specializes in container leasing business and it is the owner of the container.

The owner of the container is the container of the leased party, and the user, usually the shipping company or the cargo owner, is the party of the lease, and the two parties sign the lease contract. The qualified container provided by the lessor is handed over to the lessee within the agreed scope. There are various ways of container leasing, which are commonly used internationally, including: process charter, time charter, time charter, and leasing within the navigation area.

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

(1) Avoid immediate investment of huge funds

Containers are expensive, and a 20-foot container costs more than $ 1,800 when it leaves the factory. If a liner company needs to open up a container shipping route, shipowners often need to bring thousands of containers, which requires a lot of funds to purchase containers. With a container leasing company, it is sufficient to pay only a small amount of rent.

(2) Global pick-up and return convenience

Liner companies' demand for boxes is changing and unbalanced. Only the leasing companies can return containers worldwide, which greatly solves the problem of liner adjustment by the liner companies.

(3) Supply guarantee at container demand locations

It is impossible for any liner company to have storage at any of its demand locations, and the rental company can relatively meet their requirements and ensure the supply of containers as much as possible.

With the above advantages, the container rental business has developed rapidly, and container rental companies have always accounted for more than 45% of the total container volume in the world. In China, especially the container fleets of near-sea liner companies and domestic trade line liner companies, the leasing volume accounts for more than 90% of the total volume.

Container leasing is a long-term and stable profit-making business. It is mainly invested by European and American funds. The profit mainly depends on the payment of container production costs.

Container leasing can be divided into three categories due to the needs of the renter:

Time lease

The term lease of containers is divided into two types: long-term lease and short-term lease. Long-term leasing generally refers to a long lease period, while short-term leasing leases containers based on the required period of use, which is relatively short.

Cheng Cheng

The leasing of containers includes two ways: one-way leasing and round-trip leasing. One-way leasing is mostly used in the case of unbalanced supply of round-trip cargo on the same route, that is, one-way use of containers from the port of departure to the port of destination;

3. Flexible Leasing

Flexible leasing of containers

In international container transportation, the role played by container leasing is very important:

1. Container transportation operators can rent containers to solve the problem of huge investment for a short time in the case of shortage of funds.

2. The renter pays the rent to obtain the right to use the container, and can be responsible for it during the lease period.

An advanced and efficient container leasing management information system is an important part of the container leasing business carried out by the leasing operator,

The container lease contract stipulates the rights, obligations and

1. System construction goals

Provide customers with secure, fast, comprehensive, and multi-level information services based on the overall IT framework. Take the container leasing business field, centralized management, and business synergy as the platform's business cornerstones, smooth and developed network technology, open and scalable services as the platform's technical foundation, and resource optimization and information sharing, and create corporate standards as the platform Development path, with the goal of providing quality services to customers. Improve the operational efficiency and market competitiveness of container leasing companies.

2. System business architecture

The business architecture design of the lease box management system is to model and plan the core business of the enterprise. It combines the operation mode of the existing system of the enterprise and the organizational structure of the enterprise management, and uses the latest results of computer technology in the system modeling to make The computer system is integrated with the organizational structure of the enterprise, which fully improves the efficiency and flexibility of business operations.

The system business architecture implementation can generally be divided into the following three stages: the first stage is the establishment of the operation layer system; the second stage is the establishment of bills, financial interfaces, and e-commerce platform systems; the third stage: customer relationship management (CRM) to assist decision-making Support (BI) system establishment;

System business architecture implementation Several business applications implemented at the same stage can still be arranged in a certain order according to the implementation strategy requirements; at the same time, different application modules in an application portfolio will also be designed and developed with different emphasis at different stages.

3. System function module

Financial System

The lease box management system and financial system are two indispensable parts of the lease box company's information system. The lease box management information system serves as a business operation and comprehensive data collection platform to achieve data collection, processing and analysis of the front-end backbone business. The financial system provides timely and accurate business and expense data. On this basis, the financial system will integrate the information of the main business system and other business systems to achieve comprehensive accounting of the company for effective financial accounting and cost analysis, reflecting the true and reliable financial status, and thus providing a basis for management decision-making.

The container rental industry is an industry with a lot of capital operations. Whether the financial management of the rent-box company is standardized and transparent, for the investor, this is an important factor to ensure the safety of his investment, and it also becomes a basic requirement for whether he finances the rent-box company. After many well-known international leasing companies build their own business systems, they basically use well-known financial management software (such as SAP financial software and PeopleSoft financial software).

System application architecture

The application architecture adopts modularization to improve the maintainability of the system and facilitate the upgrade and transformation of the system.

With the continuous development of the international container shipping market, domestic leasing companies have begun to realize the importance of informatization construction. Many leasing companies have begun to plan or have implemented informatization projects. The management mode and service service mode of different leased box enterprises are different. Therefore, the successful experience of each advanced leased box enterprise in the construction of the information system can hardly be copied. In the construction of the IT system, the rent-box company must combine the enterprise's development strategy, carry out sufficient long-term planning and reasonable architecture design, and maintain a certain degree of flexibility in order to adjust and update in time, reduce the risk of rent-box information system construction, and ensure the system Successful implementation.