From an operational viewpoint, container leasing is said to be 50% to 70% more expensive than ownership. Are you wondering how container leasing companies in Dubai make leasing very smart despite the high cost? To sum up the answer in a single word- it is because of ‘flexibility’.

Leasing is more flexible than owning. Besides flexibility, there are also several benefits of partnering with a leasing company. Let us discuss the advantages of container leasing in Dubai in this blog.

Know about the pros and cons of owning container first 

Companies that require only one to two storage containers on their premise will find ownership as the best option. When it comes to the mobility aspect- they are beneficial as cargo transportation and storage apparatuses. If you are a container owner, you completely remain responsible for entire storage expenses. If in case, when you want to modify or convert the container into a different one, you have to bear the entire expenses. The owner has to take up all the responsibilities and maintenance involved.

Owning is best when you require containers for a long time, utilize frequently, require to customize them, and also do not require more than one or two of them. With everyday usage, the demand will be regular and predicted to be at a constant high. 

Container leasing companies in Dubai know well that size matters 

Container leasing companies own the largest portion of storage containers in the domain and they are mainly a fiscal logistics instrument in business to rent out the privileges to utilize them. Roughly, 52% of storage containers are possessed by top leasing companies in the world.

During the previous recession, several container owners sold containers to leasing companies to manage their finances. Leasing companies provided lease back options and the company kept utilizing the container under a fresh leasing agreement. Several top shipping liners use container leasing businesses for this reason too.

Kinds of container leasing agreements 

Master lease: It is one of the most flexible leasing agreements and it comes with an expensive price tag. Certain benefits include a long list of drop off and pick up locations where you can assort and match. If you are storing containers at the depot of the lessor, you can save on storage expenses. It is necessary to decide beforehand about the rental rates and quantity. However, in the master lease, it mostly remains flexible. Companies that have unpredictable demand and require super large fleets usually sign up master leasing agreements. The best part is the leasing companies remain responsible for maintenance, repositioning, and repair of storage containers.

Lease buy-out: It is almost similar to the concept- rent to own. It comes with a standard rental price but with limited options. If you are utilizing any features, the company would charge and add to the final bill. When you do not have the cash to pay immediately or on hand, you can use this option.

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