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WHAT IS AN SOC CONTAINER? USES AND IMPORTANCE


WHAT IS AN SOC CONTAINER? USES AND IMPORTANCE


Shipping containers are simply standardized metal boxes used for transporting freight. But figuring out which type of shipping container is best to transport your cargo can have you quickly feeling overwhelmed.

When shipping, you can either buy your own containers or lease them from your carrier or another container owner. The price of these shipping containers can vary depending on its size and type as well as the current demand.

Before making a decision about which shipping containers to use or purchase, it’s important to evaluate your shipping needs and options.

WHAT ARE CARRIER-OWNED CONTAINERS (COCS)?

Carrier-owned containers (COCs) are boxes rented out by carriers to importers and exporters. This means you lease the COC containers from the shipping line that also transports your goods. You pay a comprehensive rate for them to move your freight in their containers.

When it comes to logistics as a shipper, using COCs can be simpler and easier if it is a basic shipment and common shipping route. However, there are many cases where this shipping option can become costly.

WHAT ARE SHIPPER-OWNED CONTAINERS?

SOCs are shipper-owned containers, meaning the boxes are owned by an individual or company. Shippers can organize their own SOC containers and book a slot with the carrier to transport their container.

Businesses, such as container trading or leasing companies, can also rent their SOC containers to other shippers who do not want to use carrier-owned containers.

WHY SHOULD I USE SOC CONTAINERS?

SOC containers can help keep your freight costs down and give you more control over the shipping process.

AVOID DEMURRAGE AND DETENTION FEES

Carriers (shipping lines) can charge demurrage and detention fees with COCs if it takes longer than expected for their containers to be emptied and returned to the designated port. These fees are implemented when there is a delay issue outside the carrier’s control, whether or not it is the fault of the shipper.

There is an allotted number of free days the carrier allows for the COC container to remain at the terminal and outside the port. If this number of days is exceeded at the terminal, demurrage fees incur. If the container remains outside the port for longer than the free days, detention fees incur. 

If your cargo container needs to travel through multiple modalities or if its destination is in a remote location, using SOC containers can help avoid expensive container detention fees.

PORT CONGESTION DELAYS LEAD TO DEMURRAGE FEES

Many companies are experiencing shipping delays due to increased shipping demands from the surge in the e-commerce industry. As more products are being purchased online and shipped overseas, this leads to port congestion delays. These delays play a major part in demurrage fees, as shippers are forced to pay these fees while their cargo waits to be unloaded at the ports.

Using SOC containers can help you better manage the cost of your shipping and avoid unexpected fees.

LEASE SOCS ONE-WAY

Leasing SOCs means you can use them to transport your cargo to its destination and, if the proper arrangements are made, you don’t have to worry about the costs associated with returning the empty container to its starting location.  

SOC CONTAINERS FOR PROJECT CARGO

Project cargo (also known as heavy lift, project forwarding, or project logistics) is the transportation of large, heavy-duty, complex, or high-value equipment, such as:

  • Generators
  • Towers
  • Heaters
  • Locomotives
  • Boats
  • Reactors
  • Satellites
  • Transformers

It is best to use SOC containers for project cargo because it involves meticulous shipping plans. In the logistics industry, project cargo is the most complex to transport because it often has a strict timeline, budget restrictions, and additional safety requirements.

SAGE MAKES IT EASY TO LEARN MORE ABOUT LOGISTICS 

SAGE provides the best shipping courses in Kerala. The expert team in SAGE has in-depth knowledge of the industry and they provide various logistics and supply chain management courses.

Visit our website today to know more about the best logistics institute in Kerala.