The question raised only for FCL (Full Container Load) transportations, when it is needed to transport even one, but full container. Depending of conditions rent or buying of container can differ drastically. What is less expensive and more profitably and how arrange correctly this operation in this article.
What is COC and SOC containers
|SOC (Shipper Owned Container)||COC (Carrier Owned Container)|
|SOC container as a rule bought by the shipper before carriage and then (with cargo in it) sold to the byuer.||COC container is the property of transportation company (shipping line). Such container gives to the rent to shipper and must be given back to transporter in stipulated time.|
When it is less costly to use COC container
— COC container is the best way when goods can be unload or reload not far from container terminal (for example from container into the truck right in the port).
— Another moment — the rent of ordinary truck much chipper than container truck.
— If it isn’t need of longer storrage goods in container (for example in bad weather conditions or for the protection).»
When it is less costly to buy SOC container
It is more reasonable to buy SOC container when:
- Сargo is expensive, fragile and can be damaged when repacking. When risk more expensive than container.
- In case of long distance of delivery, esp. in regions with bad climate.
- In case of long time of storage of goods in bad climate or risky places (for example construction projects).
- If buyer have ability to sell used container in place of delivery, or to use it in his business.
- Often carriers deny to rent COC container, when understand that nearest stock is too far from the place of delivery.
Detention, Demurrage and free time of container usage
Using of COC container means, that shipper can use it only for a limited period of time. This period of time named: free-time.
It devides for terminal handlngs in the port (+ customs formalities if in the prot) + time for post carriage and returning of container to the nearect container stock.
If container holds over free-time shipper has to pay Dmurrage and Detention. Cost is about 20 — 100 $per day.
Demmurage — if container holds in the port.
Detention — if container holds out of port. It is very important to check detention with carrier (from offer or contract) and know where is container stock of this carrier.»
Customs formalities of COC container (temporary import)
If COC container used as reusable containers (or means of transport for international dlivery) can be imported under the temporary admission procedure.
Containers that are imported for the purpose of selling them are cleared through Customs like all other imported goods.
Container can be declared as:
1. Transport for international dlivery that way of declaration put some restrictions in some countries (for example in Russia).
2. Reusable container can be declared under temporary admission procedure, as a rule this means that declarant do not need to impose declaration, pay any customs payments or taxes. It is enough to provide to the customs:
— letter with reexport obligations (example),
— commersial and transport documents,
— list of containers numbers.
Byuing and customs formalities of SOC container
In case, when to byu SOC container is required, seller of the cargo oiften buy container and then sell it to the buyer with the goods.
Such container has to pass though standard procedure of customs clearance as any other goods. It is then can be used as its owner whants.
Container import clearance
Containers are means of transport that can be imported duty-free under the temporary admission procedure when they are used for the commercial transport of goods.
Containers that are imported with the purpose of selling them are cleared through Customs like all other imported goods.