Shipping companies understand that leasing a container is often more costly than ownership, however this approach offers the shipping lines more flexibility, reduces their overhead and it has proven to be more cost effective; in the long run.
Container leasing arrangements are very flexible and well structured, to enable the container owners to protect their principle and enjoy safe investments. Currently, the established container leasing arrangements, fall into three major categories:
- Master Lease: Also called full-service leases. In this instance, the leasing company assumes full management of the container fleet and for repositioning, following the off hire and the contract termination.
- Long-term Lease: Also called dry leases, this approach is commonly associated with the extended use of the leased container, by an ocean carrier.
- Short-term Lease: Also called spot market leases, because the lease price is strongly influenced by current market conditions, and is highly influenced by the volatility of supply and demand.