When shipping, you can either buy your own containers or lease them from your carrier or another container owner. The cost of these shipping containers can range from $1,500 for smaller, used boxes to $8,000 for larger, newer boxes. However, some may cost even more, and the price of containers can vary drastically depending on the type and current demand.
Before making a decision about which shipping containers to use or purchase, it’s important to evaluate your shipping needs and options.
What’s Covered in This Article:
Carrier-Owned Containers Vs. Shipper-Owned Containers
What Are Carrier-Owned Containers (COCs)?
What Are Shipper-Owned Containers (SOCs)?
Why Should I Use SOC Containers?
Avoid Additional Demurrage and Detention Fees
SOC Containers for Project Cargo
7ConNetwork Makes It Easy to Ship With SOC Containers
Carrier-Owned Containers Vs. Shipper-Owned Containers
What Are Carrier-Owned Containers (COCs)?
Carrier-owned containers (COCs) are boxes rented out by carriers to importers and exporters. This means you lease the COC containers from the shipping line that also transports your goods. You pay a comprehensive rate for them to move your freight in their containers.
When it comes to logistics as a shipper, using COCs can be simpler and easier if it is a basic shipment and common shipping route. However, there are many cases where this shipping option can become costly.
What Are Shipper-Owned Containers?
SOCs are shipper-owned containers, meaning the boxes are owned by an individual or company. Shippers can organize their own SOC containers and book a slot with the carrier to transport their container.
Businesses, such as container trading or leasing companies, can also rent their SOC containers to other shippers who do not want to use carrier-owned containers.
Why Should I Use SOC Containers?
SOC containers can help keep your freight costs down and give you more control over the shipping process.
Avoid Demurrage and Detention Fees
Carriers (shipping lines) can charge hefty demurrage and detention fees with COCs if it takes longer than expected for their containers to be emptied and returned to the designated port. These fees are implemented when there is a delay issue outside the carrier’s control, whether or not it is the fault of the shipper.
There is an allotted number of free days the carrier allows for the COC container to remain at the terminal and outside the port. If this number of days is exceeded at the terminal, demurrage fees incur. If the container remains outside the port for longer than the free days, detention fees incur. In some cases, these fees can be up to 20 times the value of the container. While these fees used to be rare, they are becoming more common and can reach $100 USD per day.
If your cargo container needs to travel through multiple modalities or if its destination is in a remote location, using SOC containers can help avoid expensive container detention fees.
Port Congestion Delays Lead to Demurrage Fees
Many companies are experiencing shipping delays due to increased shipping demands from the surge of the e-commerce industry. As more products are being purchased online and shipped overseas, this leads to port congestion delays. These delays play a major part in demurrage fees, as shippers are forced to pay these fees while their cargo waits to be unloaded at the ports.
Using SOC containers can help you better manage the cost of your shipping and avoid unexpected fees.
Lease SOCs One-Way
Leasing SOCs means you can use them to transport your cargo to its destination and, if the proper arrangements are made, you don’t have to worry about the costs associated with returning the empty container to its starting location. 7Connetwork partners, Container xChange, operate an online platform to make the process of finding partners to lease shipping containers from quick and easy.
SOC Containers for Project Cargo
Project cargo (also known as heavy lift, project forwarding, or project logistics) is the transportation of large, heavy-duty, complex, or high-value equipment, such as:
- Generators
- Towers
- Heaters
- Locomotives
- Boats
- Reactors
- Satellites
- Transformers
It is best to use SOC containers for project cargo because it involves meticulous shipping plans. In the logistics industry, project cargo is the most complex to transport because it often has a strict timeline, budget restrictions, and additional safety requirements.
7ConNetwork Makes It Easy to Ship With SOC Containers
The expert freight forwarders in our network have in-depth knowledge of the different types of containers and which ones are best for various cargo types, sizes, and weights.
Our experienced forwarders find and arrange your SOC containers through Container xChange, the platform that connects us with trustworthy, background-checked SOC partners.
7ConNetwork’s online booking platform lets you get freight quotes and know the cost of your shipments before you book. Visit our platform today to book your shipment with the best network of freight forwarders in the industry.
