Lighthouse Container Leasing offers a range of certified Shipper Owned Containers suitable for export and intermodal transport.
If you are interested in a solution to mitigate the risk of demurrage and detention, we provide an extended free day period and thereafter a fixed daily rate, per container, per day, based on actual usage, which does not escalate or tier.
Your consignee or cargo owner can use the SOC as a short term storage solution at destination if required, or return the empty container at the closest turn-in depot at the destination.
Shipper Owned Containers (SOC’s) & Carrier Owned Containers (COC’s)
What’s the difference between SOC’s and COC’s?
SOC’s and COC’s are physically identical, certified for the safe intermodal carriage of goods, complying with CSC and Approved Continuous Examination Program (or ACEP) certifications.
The main difference between an SOC and a COC is which party owns and takes responsibility for the container. Shipper owned containers belong to the consignee or the cargo owner and not the shipping line, and there is no demurrage risk.
Carrier owned containers belong to the shipping line or the logistics company that has provided a contract of carriage which includes the supply and limited use of the container. Once the container is unpacked, the empty container is returned to the carrier, within the free day period stipulated. If a container is overdue or the “last free day” has passed, demurrage becomes payable.
What is Demurrage?
Demurrage refers to the charge given to containers that are left at a port or rail yard and are overdue on their allotted time. This means that if a container stays longer than the free storage time given, demurrage will then be charged. Demurrage charges are unfortunately, very common and sometimes unavoidable. The costs can quickly become onerous and escalate daily. Detention charges may also apply.
Both demurrage and detention charges are designed to ensure that the carrier owned container is unpacked and returned to the shipping line as a priority.
Unfortunately logistic delays, like bad weather can be both inevitable and uncontrollable, and result in significant demurrage and detention charges accumulating. Understanding your responsibilities and researching your options can mitigate some of the risks. Speak to a member of our team now and we’ll be happy to answer any questions you may have.
