COC & SOC Containers

In Sea trading international, everyone is dealing with containers in and out but have you thought of the owner of containers?

We have two types of container owners in the market.

1. COC – Carrier Own Container

This is a container that is owned and managed by the shipping company (the carrier). The carrier provides and rents out the containers to shippers for the transportation of goods.

Advantages of COC:

• Availability & Reliability: Carriers typically have a large fleet of containers, ensuring availability and no risk of shortage, especially in high-demand situations.

• Maintenance and Repairs: The carrier takes responsibility for maintenance, cleaning, and repairs of the containers, reducing the shipper’s hassle.

• No Initial Investment: Shippers do not need to purchase or maintain containers, which can be expensive, especially for smaller companies.

• Easier Coordination: Since the carrier owns the container, they handle the logistics of container handling, and tracking is often integrated into their systems.

  
  

Disadvantages of COC:

• Higher Rental Fees: Shippers are generally required to pay for the rental of the container, which can add to overall shipping costs (Ocean freight), especially for long-term use.

• Limited Flexibility: Shippers have limited control over the type and size of containers, which may not always be suitable for their specific cargo needs.

• Additional Charges: The shipper might be charged for demurrage (holding the container longer than agreed) or detention (delaying the return of the container)

2)      Shipper-Owned Container (SOC)

This is a container owned by the shipper (usually the consignee or consignor) and is used for transporting goods. The shipper either owns the container outright or leases it from a container leasing company.

Advantages of SOC:

• No Rental Fees: Shippers can avoid the recurring cost of renting containers if they own their own containers.

• Control over the Container: Shippers have full control over the type, size, and condition of the container, which can be customized to suit specific cargo needs. (Need to be seaworthy to be shipped as containerized shipment)

• Flexibility: Shippers can choose to use their containers for various shipments, not limited to any one carrier or shipping line.

• Cost-Effectiveness for Frequent Shippers: For shippers with large and frequent shipments, owning containers can be more cost-effective in the long term.

Disadvantages of SOC:

• High Initial Investment: Purchasing containers requires significant upfront capital, which may be difficult for smaller companies to manage.

• Maintenance Responsibility: Shippers are responsible for maintaining, repairing, and cleaning the containers, which adds operational complexity and cost.

• Logistical Issues: Shippers must manage their own container logistics, including arranging for the return of empty containers or moving them from one port to another, which may be cumbersome.

• Limited Availability: If the shipper does not have enough containers, they may face delays or be forced to rent containers from a carrier at an additional cost.

Key Differences:

Conclusion:

COC is suitable for companies that prefer convenience, minimal capital investment, and don't want to manage container maintenance. However, it may come at a higher cost due to rental and potential additional fees.

SOC is ideal for larger or frequent shippers who have the capital to invest in containers and prefer control over their own equipment. However, it comes with responsibilities for maintenance, logistics, and repairs.

Ultimately, the choice between COC and SOC depends on the shipping needs, budget, and operational preferences of the shipper.