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Shipping Container Fleet Sales - Sale and Leaseback

28.08.2023 - Posted by Updated On 28.08.2023    

Running a steam ship line is an expensive business, and a very capital intensive one at that. Millions of dollars can be tied up in one single vessel, and using capital efficiently is tantamount to success. This specific issue is the reason that leasing companies that specialize in shipping containers exist. These leasing companies provide shipping lines with access to containers without having to invest large sums of money into the equipment. That being said, most shipping lines still own a portion of their container fleet to keep monthly recurring costs in check, especially if they have access to inexpensive capital and adequate leverage. If capital requirements change, or the economic climate shifts, shipping lines may need to sell portions of their container portfolios to investors to release the capital tied up in them, and ContainerAuction.com works with several investors that are capable of providing such a service.

Sale and Lease Back Services

In the recent past, many shipping lines have sought to use a "sale and lease back" option for their shipping containers. In this event, the investor purchases a portfolio of shipping containers at a given price, and leases them back to the shipping line for a set period of time. If the agreed structure is an operating lease, at the end of the period it the investor owns the containers and they can be returned to an agreed list of depots. If the agreed terms are a financed lease, at the end of the agreed term the shipping line can repurchase the containers at the agreed upon price, or residual value. In both cases the shipping line makes a monthly or quarterly payment to the investor, providing the investor with a return on their capital.

Investor Services - Portfolio Valuation and Container Sales

ContainerAuction.com provides a several useful tools for investors; the two most common services are sales and valuation.

Given our experience and expertise, our staff is capable of managing consignment sales for any number of shipping containers, in any location. Investors can work directly with the office to provide realistic, attainable target pricing and liquidate the containers to gain the maximum return on investment.

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Prior to acquiring a portfolio of shipping containers, ContainerAuction.com can provide valuation services to determine the fair market value, both wholesale and retail prices, of the shipping containers. This type of third party valuation is important to consider before entering into any agreement.

Summary

The management and advisory group at ContainerAuction.com has many years of experience in container sales and finance, and has worked with several of the best known shipping lines, leasing companies, and investors around the world. If you are considering a portfolio sale, or investment in shipping containers we invite you to contact us and discuss the options that might be available to you.



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