Owning and Leasing.
there are two ways of procuring any property either buying it or hiring the property,same way this principle is applicable for containers. Containerization in itself is very huge investment for shipping companies, this investment includes building new ships ,setting up terminals , handling equipment etc.
Advantages of using leased containers.
1) To avoid tying up the funds.:
Purchasing of containers by company requires huge amount of funds at one time while leasing becomes much easier as the container are hired for a fixed period and for a fixed rate which makes it easy for the company and containers can be returned back whenever they are not needed.
2)To avoid Depreciation.
leased containers are used by the companies and are not part of companies assets so they are not subjected for depreciation.
3)To avoid risk of having idle facilities
owing container can be idle if there is no business so hiring container eliminates the risk of having idle facilities.
4)To save storage charges while idling.
while owned units would incur storage charges if kept in depots, leased units can be returned back whenever they are not needed.
5)To avoid maintenance
containers are prone to damages while moving from one part to another so the maintenance part of the units are taken care by the leasing companies making it easy for the companies who are hiring it.
there are two ways of procuring any property either buying it or hiring the property,same way this principle is applicable for containers. Containerization in itself is very huge investment for shipping companies, this investment includes building new ships ,setting up terminals , handling equipment etc.
Advantages of using leased containers.
1) To avoid tying up the funds.:
Purchasing of containers by company requires huge amount of funds at one time while leasing becomes much easier as the container are hired for a fixed period and for a fixed rate which makes it easy for the company and containers can be returned back whenever they are not needed.
2)To avoid Depreciation.
leased containers are used by the companies and are not part of companies assets so they are not subjected for depreciation.
3)To avoid risk of having idle facilities
owing container can be idle if there is no business so hiring container eliminates the risk of having idle facilities.
4)To save storage charges while idling.
while owned units would incur storage charges if kept in depots, leased units can be returned back whenever they are not needed.
5)To avoid maintenance
containers are prone to damages while moving from one part to another so the maintenance part of the units are taken care by the leasing companies making it easy for the companies who are hiring it.
