Container leasing – How technology is powering its day-to-day functions

Container leasing – How technology is powering its day-to-day functions

Container leasing companies own 52% of the world’s containers.

In 2019, the container leasing market size touched US dollars 5.20 billion and it is increasing at a compounded annual growth rate of 17%.

Shipping container leasing companies rent containers to investors who require them for transporting merchandise, storage, housing and a host of innovative concepts where containers are increasingly being put to use. A leasing company’s operations include purchase, leasing of intermodal containers and trading through which they maintain a steady stock of quality containers.

To fulfill low-volume shipping needs, customers choose leased containers, which are cost-effective compared to purchasing new or used containers. Outright purchase of containers for own use is economical when they’re used for an unlimited time stretching up to several years and often until they retire from service due to wear and tear. Renting proves to be the practical solution when a carrier is looking to save high upfront costs.

Container leasing involves entering into an agreement with a container supplier. The supplier concludes an understanding to supply one or more containers to the client, with the commitment that they will be used for a stipulated period at a rate stated in the terms of the lease agreement. Both the supplier and the customer will also agree to other terms and conditions required by laws and state other concessions made between the two entities.

Leasing companies offer customers the flexibility to choose the right type of lease option that suits their needs. The different leasing options are Master Lease, Short-term Lease, Lone-term Lease and One-way Lease. Leasing companies may let the carrier leave behind the container at the destination itself after it is emptied. This saves money for the carrier as they can do away with the need to transport empty containers to the base station. But leasing companies will charge a repositioning fee instead.

Market analysts predict that the demand for leased containers will shoot up in the coming years. Complementing their primary purpose of transporting merchandise, containers can be converted into storage space, offices and homes after some modifications.

The IT revolution has transformed the way businesses function. Voluminous documentation and time spent working with spreadsheets and emails are being replaced by automated processes that bring accuracy, transparency, speed and efficiency. Shipping container leasing companies now recognize the need to automate their functions to stay competitive and ensure that their customers stay loyal and generate value for one another.

In an increasingly data-driven business environment, container leasing companies, whether they are small, medium or large, can reap rich dividends by bringing onboard software solutions to manage their routine workflow. An all-inclusive container lease management module covers all key activities right from procurement to sale or lease.

The ideal software solution for container leasing includes key functionalities like:

  • Documentation for multiple equipment sizes and types
  • Approvals based on workflow and lease term customization
  • Customer-specific terms & conditions or general terms
  • Customizable rates and payment terms
  • M&R workflow, recovery, batch sales, DRV/NBV calculators
  • Global inventory, depot inventory audit
  • Periodic and advance billing
  • Customizable bill format with options for the draft and final versions
  • Late entry inclusion in the subsequent month
  • Billing archives retrieval
  • EDI for gate movements
  • Repair estimate, survey request, post-repair survey, repair version history
  • Reverse EDI
  • ANSI ISO / UN EDIFACT formats support
  • Email alerts
  • Purchase workflow; P.O. generation, bulk procurement
  • Technical specification input

A comprehensive software solution will be adaptable to all fleet sizes with an easily retrievable unit history. Daily functions are assisted by smart alerting mechanisms. It should be scalable to go with the changing needs of the business concern. Capabilities such as bulk upload, auto-generation of reports and billing should be available.

iInterchange Systems / presents a variety of IT solutions on SaaS and “On-Premises” model. Their industry knowledge, technical proficiency and focus on customers’ needs make them the right people to partner with to meet the software needs of container depots and terminals. Their leading application, iCORAL features all functions of shipping container depots to deliver optimal levels of workflow efficiency. iInterchange’s friendly, dedicated team works with customers closely to guarantee a smooth transition and prompt after-sales-service support.

iInterchange offers iCORAL via “On-Premises” model through the purchase of license and also on “Cloud” through subscription.