The shipping container is known to be a major driver of international trade. Because of the important use of this essential asset, differences were made to identify containers based on their use and the holder of the container. Based on regulatory rules, these differences led to the categorization of the container into two broad types which are SOC and COC. While SOC stands for Shippers Owned Containers and can be purchased by anyone who needs them, COC stands for Carriers Owned Containers and just like its name, it is owned by the carrier, mostly shipping lines who are also referred to as carriers.
BOXXPORT offers SOC containers of different types and is available in a location near you.
The question on why SOC containers should be used when COC containers are also available still remains.
Taking a look at how the international market is coping presently, an article published on March 18, 2020, from Bloomberg titled: ‘’There Aren’t Enough Containers to Keep World Trade Flowing’’ showed the concerns from food manufacturers regarding the shortage of containers to aid supply globally. Highlighted some food manufacturers concerns based on the unavailability of containers, for imports and exports.
These concerns confirm the imbalance of containers largely caused by the COVID-19 virus. Analyst confirm that the shipping container industry is an important aspect of global trade needed to move goods as the demand for goods spur. While carriers are key stakeholders in global trade, they mainly make use of COC containers. All these amongst others, are the reasons why we give four points below, and highlight some of the differences between SOC and COC containers.
|Points||SOC (Shipper Own Container)||COC (Carrier Own Container)|
|Ownership||Owned by a consignee or supplier||Owned by a Carrier/ Shipping line|
|Payment Charge per Use||Once owned, no charge is incurred except when goods are to be imported and the owner pays the carrier to move the container.||Payments in the form of charges exist. Detention and Demurrage charge are the two main charges usually incurred.|
|Provision for Use||·Can be used for normal storage of goods on land. |
·Can only be used for imports and exports upon certification to attest that the container is sea/cargo worthy.
|·Used mainly for the import and export of goods. |
·Can also be used for the storage of goods on land.
|Flexibility||You can decide on your own, where and when to get your container.||Carrier decides on container availability. You only need to pay the carrier a fee to move your cargo.|
With the gradual reopening of business processes in China, the movement of goods from China to other regions have begun. These movements will in the long run help balance the container supply from China to other regions again.
However, analyst pointed out on Friday March 20, 2020 that worldwide, there are about 40 to 45 million containers in service. To operate 1 vessel slot, about 2.5 to 3 containers are required. With the quarantine of 14 days on vessels arriving China from specific locations, the ratio on vessel slots will increase but will still not be sufficient enough for at least six months, to balance container availability across regions.
Most Liner companies are seen to be holding on to containers and moving them around empty, in order to cater for both the demand and supply side.
Considering the differences between SOC and COC containers shared above, there is a need to stress on the use of SOC containers now to drive supply and meet demand. While the availability of COC containers seems to be unavailable in some regions at the moment. SOC containers are a good source to help hasten the supply of goods across regions, without the need to experience the delay in waiting for containers to be returned before goods are offloaded and unloaded.
BOXXPORT offers a platform with a global presence that has about 10,000 containers available for purchase. The platform offers a marketplace that addresses the efficiency and speed required to sell containers as well as buy containers globally.
This way, you can buy SOC containers on BOXXPORT from one location, use this container to move goods to another location and sell the container on BOXXPORT at arrival in the new location to someone else who needs it.
You can find all types of SOC containers on BOXXPORT. Trust us and the world is yours!