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Everyone is looking for the cheapest prices on new and used shipping containers, and they hope to get the best deal by trying to go directly to the source. However, what they don't realize is that shipping lines and container leasing companies really aren't set up to deal individual consumers, and many times don't want to deal directly with the end consumer. It's nothing personal about the end consumer, it's more about efficient transactions and keeping their equipment moving through the depot quickly. This is typically done through volume buys and gate deals with local retail locations. The final obstacle to dealing directly with the consumer is the transportation issue.
Shipping lines and container leasing companies usually have a regular flow of containers into a few specific locations. For example, if a lease agreement is ending, or the containers are reaching the end of their sea going life, a large number of them may be returned to one location, Long Beach for example. Rather than leave the containers sit at the port or depot and run up costs they will offer a price for a single container, and a better price to take all of the containers. This frees up the remarketing staff to move on to the next deal without worrying about incurring storage charges. The catch is, if any of the containers are damaged they'll still have to take them. Overall, given the discounted price everyone still does well in the transaction. |
Another way that shipping lines and leasing companies sell a large volume of containers is through "gate deals". A local storage retailer will agree to buy a set number of shipping containers arriving over a period of time. For example, "Joe Storage" in Miami will agree to buy 20 containers per month, instead of three months. This allows the shipping line to reduce their costs and deliver the containers directly to Joe Storage, and Joe Storage saves on the price but again isn't guaranteed the condition of the container, but is able to make repairs if needed.
The last remaining obstacle to the end consumer dealing directly with the original owner of the container is the issue of delivery. Many end users of the shipping container don't have the capacity to unload a shipping container from a trailer or chassis, and need the container delivered on a tilt bed truck. This is a specialty type trailer takes a little more time to manage, and requires the container be off loaded, usually at a depot or retail seller, and moved onto the tilt bed. The additional handling required to do this can be very time consuming and slows down the remarketing operations for other container sales.
While there are other issues, such as neutralization, import duties, and local taxes, these are three of the largest reasons why shipping lines and container lessors prefer to deal with retail locations and provide them wholesale / volume pricing. Less questions, stronger relationships, and smoother transactions. Plus, retail locations can provide the end buyer with the ability to inspect the container and request modifications like doors, windows, and custom paint.
ContainerAuction.com is an online marketplace that provides both wholesale and retail shipping container deals throughout North America and the rest of the world. Registered and approved retails can qualify for wholesale offers, and all others can view active listings and retail pricing. For more information please contact our office at 307-222-9085 or email us through our contact page.