Three-quarters of freight forwarders in Asia believe that shipper-owned containers (SOC) are adding resilience to their supply chains, with companies reporting they plan to use more in the future.
Analysis by logistics platform, Container xChange, reveals that market uncertainties caused by supply chain crises over the past two years have created a thriving environment for SOCs, with Asia developing as a key market.
Pudong Prime, an international freight forwarding company observed that freight forwarders and shippers are increasingly aware of the advantage of SOCs over carrier-owned containers with their low charges for pick-up and demurrage and detention.
Wilson Le, marketing development strategy, Pudong Prime said, “We have gained a competitive advantage with SOCs as compared to the high detention charges and equipment shortage associated with COCs. We’ve achieved a cost advantage due to the lower pick-up charges with SOCs compared to COCs.”
Christian Roeloffs, co-founder and chief executive of Container xChange, said that the industry was responding to supply chain pressures by diversifying its sourcing strategy.
“Lack of transparency and standardised digital processes has fuelled inefficiency for a very long time in the logistics industry,” he said. “These struggles are further worse for shipper-owned containers where no carrier takes care of processes. This hinders the adoption of SOCs in the market.”
Container xChange believes it has a strategy to help freight forwarders with its real-time Connect tool with helps coordinate leasing pick-ups and drop-offs.
“Our aim was to limit unforeseen situations with SOC operation at both the origin and destination to avoid bad trips,” said Wilson Le. “And with Container xChange’s real-time Connect tool we achieved just that and gained more operational control.”
