Some useful Shipper Owned Container information to pass along...
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How to Avoid
Costly Shipping Headaches?
You know those shipping horror stories we all hope won't happen to us? Here are 2 real examples that just took place last month: 
Destination Demurrage
Origin Detention
Ouch... Wasted time and resources could have been avoided with 
Shipper Owned Containers.
Shipper Owned Containers (SOCs)
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.
Benefits of using SOCs:
No Demurrage/Detention & Lower Transportation Costs
Lower Freight Rates
Cargo Storage
Resale Value
Best to utilize SOCs when:
  • Shipping to countries with complex customs regulations or PSI schemes
  • Cargo originating from/destined to inland location
  • To avoid multiple re-handling of the cargo
  • Loading delays may occur due to bad weather, strikes and trucking availability
  • High seasonal port traffic resulting in congestion
  • Secure storage at destination is needed to avoid warehousing cost
Favorable Freight Rate Scenarios:
Imbalanced container flow is a regular problem for shipping lines, with the constant battle between equipment surplus and deficit. This chart illustrates the most favorable scenarios in which shipping lines might be inclined to discount rates for SOCs:
The best scenario is shipping from a deficit to a surplus location, as you would be doing shipping lines' a favor by not adding to the already existing imbalance. Make sure to ask a sales representative for a possible discount when seeking freight rates.

While, the other situations are not as favorable in the eyes of a shipping line, but an SOC should always be considered if detention or demurrage costs could potentially be an issue. 
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Philippine Berdoz
Marketing Director - CSI Group LLC
(T) :  +1-617.481.1931
(C):   +1-484.888.5539
Copyright © 2014 CSI Group LLC, All rights reserved.

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