Transcript Container leasin..
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
9000 8000 7000 6000 5000 4000 3000 6210 1999 6630 7030 2000 2001 TEUs (000) 7560 2002 8060 2003
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Lessor Portion of Fleet
Lessor portion of fleet has stayed extremely stable at approximately 40% to 50% of the total boxes available Shipping Company Lessor
Major Players
Tier 1 Tier 2 GE-SeaCo Transamerica Interpool-CAI Textainer Triton Florens Cronos Gateway Capital Tier 3 Others Total
Source: Containerisation International Market Analysis 2000
Mid-2000 (Rounded TEU ’000) 1170 18% 1150 17% 920 14% 900 14% 770 12% 510 8% 350 5% 250 4% 170 3% 140 2% 170 3% 6,500 100%
World Container Fleet on Operating Lease (‘000 Teu)
Dry Special Reefer Tank Regional Total 2000 2005 5,009 5,365 322 342 235 252 74 76 175 190 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 Higher daily rate Convenient pick-up and return locations Customer responsible for damage/liability insurance or damage waiver
• •
Container Leasing Company Higher daily rate Pick-up and return locations along various trade routes
•
Customer responsible for damage/liability insurance or damage waiver
Equipment Production Forecast Equipment Needs Leasing Process Model Order Equip from Factories Accept Equip from Factories Allocate Equip to Market Marketing Technical Operation Resale Finance Equipment Disposal Purchase Used Equip for Resale Report Used Equip Inventory Repair & Maintain Equipment Off-hire Equip from Customers Position Equip to Market Report Available Inventory Off-hire Contract Administration Activities Market Services to Customers On-hire Activities Book Equip to Customers Negotiate Sales of Used Equip Supply Used Equip to Buyers Preclear Equip from Customers Negotiate and Record Contracts Bill Customers Rental On-hire Equip to Customers
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 Transamerica Leasing GESeaCo Textainer Group Trition Container International 2000 Fleet size 1,160 1,155 860 705 Interpool Florens Container Gorp CAI 530 455 345 Cronos Group Gateway Container Corp Capital Lease Gold Container Carlisle Leasing Other Grand total Total – operating Leasing 340 225 155 120 38 512 6,600 6,225 2005 Purchase 25 60 105 140 10 95 820 775 80 55 75 35 60 40 40
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