Top Leasing Companies by xumiaomaio

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									Container
 Leasing
What are Cargo Containers?


• Internationally-approved standard dimensions

• Can be moved by various modes of transportation

• Size - "twenty-foot equivalent units", or TEUs
        Container Types 

• Dry
• Open Top
• Flat rack
• Reefer
• Tanks
What drives the Leasing 
      Industry? 

• World Trade
• Container Conversion
• Container Replacement
• Globalization of Manufacturing
Leased Fleet Size Forecast
                                       Lessor Portion of Fleet
                               Lessor portion of fleet has stayed extremely stable at approximately 40% to
                               50% of the total boxes available
Lessor Fleet Size Percentage




                                                       Shipping Company



                                                               Lessor
                                      Major Players
                                                                         Mid-2000
                                                                   (Rounded TEU ’000)
                                                   GE-SeaCo          1170     18%
                     Tier 1
                                                   Transamerica      1150     17%
                                                   Interpool-CAI      920     14%
                                                   Textainer          900     14%
                     Tier 2                        Triton             770     12%
                                                   Florens            510      8%
                                                   Cronos             350      5%
                                                   Gateway            250      4%
                                                      Capital         170      3%
                     Tier 3
                                                   GoldLease          140      2%
                                                   Others             170      3%
                                                    Total           6,500    100%
Source: Containerisation International Market Analysis 2000
 World Container Fleet on 
Operating Lease (‘000 Teu)

             2000    2005
 Dry        5,009   5,365
 Special      322     342
 Reefer       235     252
 Tank          74      76
 Regional     175     190
 Total      5,815   6,225
Why Lease Containers? 


• Cargo Volume Imbalances
• Experimental Trade Routes
• Contract Cargo
• Lack of Adequate Capital
 How does Leasing Company 
         Operate?
Car Rental Company         Container Leasing
• Higher daily rate          Company
• Convenient pick-up and   • Higher daily rate
  return locations         • Pick-up and return
• Customer responsible       locations along
  for damage/liability       various trade routes
  insurance or damage
  waiver
                           • Customer
                             responsible for
                             damage/liability
                             insurance or
                             damage waiver
                 Leasing Process Model
   Equipment Production                                           Marketing
                                                                  Technical
    Forecast        Order          Accept      Allocate           Operation
   Equipment      Equip from     Equip from    Equip to           Resale
     Needs         Factories      Factories     Market            Finance



Equipment Disposal        Repair &             Position               Report
                          Maintain             Equip to             Available
    Purchase
                         Equipment              Market              Inventory
   Used Equip
   for Resale
                                       Contract Administration
      Report       Off-hire                     Market                       Book
   Used Equip     Equip from   Off-hire       Services to   On-hire         Equip to
    Inventory     Customers    Activities     Customers     Activities     Customers


    Negotiate                                  Negotiate
    Sales of                                  and Record
   Used Equip                                  Contracts                  On-hire
                           Preclear
                          Equip from                                      Equip to
                          Customers                                      Customers
   Supply Used                                   Bill
     Equip to                                 Customers
     Buyers                                     Rental
What is Container Lease 
      Agreement? 

• Responsibilities of Lessee
• M&R costs responsibilities & LOSS
• Billing and payment conditions
• Daily rental rate
• Container on-hire locations & costs
• Term of the contract
• Off-hire locations , costs & CAPs
Types of Lease Agreements 


 • Lease Purchase
 • Long-Term Lease
 • Master Lease
    Lease Purchase

         Purchase option
• Negotiate a deal with Lessee
• Manufacture containers
• Position to lease-out port
• Lease out to Lessee
• Bill & Collect per diem
• Sell container at the end of
   lease for $1.00
    Long-Term Lease
       3-8 years lease period
• Pre-Clear units for redelivery
• Estimated for repair
• Request Survey
• Authorizes repair amount
• Repair the units
• Repair - Local bill
• Repair - Central Rebill
• Depot invoices is Paid
• Ready for next Lease-out
      Master Lease

   no commitment on lease period


• Contract Re-negotiation
• Booking & Credit Control
• Redelivery Control
• Enter into Repair Process
Major Challenges of the 
       Industry

•Shipping line consolidation
• Pressure from competitors
• Periodic new start-ups
• IT improvements
• Slow cargo growth rate
• Management Risk
Top Leasing Companies
             For the trainer
• Keywords
  – Why we need to lease containers from
    others?
  – Ways to do the leasing
  – Impacts on the leasing industry under current
    trade level

								
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