Shipper Owned Container (SOC): What It Is, Types, and Benefits

Shipper owned containers (SOCs) offer businesses more control over their shipping needs and flexibility compared to carrier owned containers (COCs). These shipping containers are purchased or leased by businesses, allowing them to manage container ownership without relying solely on shipping lines.

In recent years, the use of SOCs has grown significantly, with businesses increasingly looking for ways to optimize global trade. Recently the shipping industry saw a rise in SOC containers, with over 35% of companies reporting improvements in freight costs and cargo flow efficiency after switching to SOCs.

In this blog, you will discover everything you need to know about shipper owned containers, their types, and their significance in logistics.

What Is a Shipper Owned Container (SOC)?

A shipper owned container (SOC) is a type of cargo container that belongs to a business or freight forwarder, not the shipping line. Owning an own container gives businesses more control over their logistics, helping them avoid additional costs tied to carrier owned containers (COCs).

This flexibility is particularly beneficial when companies need to ship cargo over long distances or frequently experience delays. SOC containers are typically found at ports, warehouses, and remote locations, making them an ideal solution for both domestic and international shipping needs.

Types of Shipper Owned Containers

Different types of SOC container options suit various business needs. Knowing which one to choose depends on factors like the type of goods, destination, and shipping environment.

Standard Shipper Owned Containers

Standard shipper owned containers are the most common type, typically used for transporting general cargo. These containers are widely utilized across industries like manufacturing, retail, and agriculture. They offer a reliable solution for storing and moving goods in container ships and cargo ships.

Special Shipper Owned Containers

Special SOCs, like refrigerated and open-top containers, are designed for transporting temperature-sensitive goods or oversized cargo. These containers are often used in industries like food logistics and construction, where specialized storage is crucial.

High-Cube Shipper Owned Containers

High-cube containers are taller than standard containers, offering extra capacity. They are commonly used by businesses shipping large equipment or bulky goods. Air freight and retail sectors frequently rely on high-cube containers for their capacity and efficiency.

Flat Rack Shipper Owned Containers

Flat rack containers feature collapsible sides, making them ideal for transporting heavy machinery, vehicles, and large industrial equipment. Industries like construction and mining benefit from these containers for their versatility in transporting oversized items.

Shipper Owned Containers vs. Carrier Owned Containers (COC)

Shipper owned containers (SOCs) belong to businesses, giving them more control over container ownership and reducing dependency on carrier companies. These containers help avoid extra charges like demurrage fees.

On the other hand, carrier owned containers (COCs) are provided by shipping lines and often come with added costs if the empty container is not returned promptly. SOCs allow freight forwarders to manage shipping costs and logistics more effectively, while COCs limit control due to carrier schedules and potential delays.

Benefits of Shipper Owned Containers

Shipper owned containers provide businesses with several key advantages, especially when dealing with international shipping and long-term logistics planning.

• Cost Management: Owning SOC containers helps businesses avoid unnecessary costs like detention fees and demurrage fees altogether, which are common with COC containers. This results in more cost-effective shipping solutions.
• Flexibility: SOC containers offer flexibility for freight forwarders, allowing them to choose their shipping lines, manage shipping containers without worrying about tight deadlines, and better control their cargo flow.
• Control Over Logistics: Using their own containers gives businesses more control over the entire shipping process. This control minimizes the risk of delays caused by port congestion or vessels operating common carrier schedules.
• Additional Storage: In distant or remote locations, SOCs provide extra storage space, serving as mobile units that can be used for both shipping and temporary warehousing.
• The versatility of the Space: Shipper owned containers are highly versatile, and used for various purposes, from transporting goods across long distances to acting as on-site storage in industries like construction and retail.

In short, shipper owned containers are a worthwhile investment, offering businesses the flexibility and control they need to streamline international transport.

Cost Considerations

Acquiring a shipper owned container involves several cost considerations, starting with the initial investment. Businesses must purchase or lease the container, which can be a substantial amount depending on the container’s condition and size. Maintenance costs also play a role, as owners need to regularly inspect and repair their own containers.

Fines such as detention costs or detention charges may arise if there are delays in the shipping process. However, compared to a carrier owned container (COC), SOCs help save money by avoiding fees like demurrage fees.

How to Acquire Shipper Owned Containers

Businesses can acquire a shipper owned container through either purchasing or leasing. 

To purchase, businesses can work with leasing companies or directly buy from shipping lines or second-hand suppliers.

It’s important to verify the container number and condition before making a decision. Checking for a valid CSC plate ensures the shipping container meets safety standards for international transport. 

Leasing SOCs offers flexibility for businesses with short-term shipping needs. Leasing companies often provide freight containers with lower upfront costs but may include additional fees. 

Regardless of whether you purchase or lease, always verify the container belongs to the seller, and ensure it is fit for long-distance use, especially in distant or remote locations.

Steps to Acquire Shipper Owned Containers

Here are the key steps to follow to quire shipper owned containers:

1. Research suppliers: Look for reputable shipping lines, leasing companies, or second-hand dealers.
2. Inspect the container: Check the original container for wear, container number, and a valid CSC plate.
3. Decide between purchasing or leasing: Evaluate your business needs, whether long-term or short-term, and choose the best option.
4. Verify container ownership: Ensure the container belongs to the seller and meets shipping regulations.
5. Confirm specifications: Verify that the container fits your specific shipping needs for cargo transport.

Managing Shipper Owned Containers

Effectively managing a shipper owned container ensures smooth operations and reduces logistics challenges. Businesses need to track, maintain, and comply with regulations to keep their shipping containers in optimal condition.

Inventory Management

Tracking container inventory is crucial for smooth logistics. Tools and software help businesses monitor each SOC container, ensuring efficient movement within the supply chain and avoiding potential loss or misplacement in a distant or remote location.

Maintenance and Inspection

Regular maintenance of containers owned by businesses is essential for safety. Scheduled inspections ensure that each freight container remains fit for use and meets safety standards, especially in remote locations.

Legal and Regulatory Compliance

Compliance with international maritime organization regulations is mandatory for all shipping containers. Maintaining proper documentation and container certification, such as a valid CSC plate, ensures that the container owned by the business meets legal standards.

Common SOC Challenges and Solutions

Managing a shipper owned container can come with challenges. Below are some common issues and solutions to overcome them.

Here are the common considerations and solutions:

• Dealing With Customs: Customs procedures can delay shipments. Businesses should ensure proper documentation and work with experienced freight forwarders to avoid detention charges.
• Managing Container Numbers: Tracking each container number can be overwhelming. Using automated software systems simplifies inventory management and minimizes errors.
• Responsibilities with SOCs: Owning an SOC means taking full responsibility for maintenance and shipping needs. Outsourcing maintenance to specialists or using digital tools can ease this burden.

Conclusion

Understanding the value of a shipper owned container helps businesses improve their logistics, manage shipping costs, and gain more control over the supply chain. SOCs offer flexibility compared to carrier owned containers, allowing businesses to reduce fees and optimize their operations.

Whether purchasing or leasing, own SOC containers provide a cost-effective solution for independent businesses looking to streamline shipping.

By now, you should feel confident about utilizing shipper owned containers to enhance your business operations, ensuring smoother, more efficient shipping and logistics management across SOC and COC container options.