One of the most important decisions we often have to make is to either rent or buy a product. No matter if it’s about clothing, housing, or cars, the question remains intact. The same is the case with business owners when they need to decide whether to rent or buy a shipping container for freight shipping. If you are in the same boat and perplexed about the choice you should make, we have got you covered in this ultimate guide! In it, we will dive deeper into the nitty gritty details of SOC and COC, along with the key points that make SOC stand out. So, without any further ado, let’s begin exploring!
Part 1. What is a Shipper Owned Container (SOC)?
Shipper Owned Containers SOCs are owned independently by individuals or businesses. Once owned, the owner will just need to pay the carrier to move shipments for imports. There won’t be any charges, like per diem or demurrage, that normally incur due to prolonged use of rented containers. They will only need to obtain certifications for the container to be cargo or seaworthy. If not certified, they can be used to store goods. Moreover, if a shipper purchases a container from a carrier, it is expected that the original decals, including the container number, will be replaced, as it is no longer the same container.
Part 2. What is a Carrier Owned Container (COC)?
Carrier Owned Container COC is the one owned by a carrier or shipping line. So, if a business plans to ship goods, it will pay additional charges, like demurrage and detention, other than the shipping charges. These containers are mostly used for importing or exporting shipments, yet they can also store goods for businesses. COCs are the responsibility of the carriers, and it’s up to them to decide on the container’s availability once they receive payment from the business. Once the shipment is made or the agreed-upon rental period has ended, the businesses are bound to return the containers to the carriers.
Part 3. SOC vs. COC – What Are the Differences?
Container ownership is the key difference between SOC and COC. Shipper owned containers are owned and operated by the one shipping goods, mostly individuals or businesses. On the other hand, Carrier Owned containers are owned and operated by the carrier, which takes shipments from businesses and ships them to the required places. Carriers can also rent their containers to businesses for storing goods with incurred charges. This is another significant difference. With SOC, businesses don’t need to pay D&D charges, which they call demurrage and detention, as these only apply to COCs.
Here’s the breakdown of other differences that both the containers have based on their usage, charges they incur, and more:
| SOC | COC |
| Owned and operated by individuals or businesses | Owned and operated by carriers |
| Can ship goods over farther distances | Rented out to the consignees for an agreed span |
| Duration of use is determined by the shipper | Duration of use is determined by the carrier |
| No demurrage and detention charges | Demurrage and detention fees apply |
| Per diem charges, pickup charges, and free days incur | Potential charges are included in the final shipping cost |
Part 4. Benefits of Shipper Owned Container
By now, you have explored the basics of SOC and COC, along with the key differences between them. Let’s now analyze why shipper owned containers take the lead!
Help Avoid D&D Charges
Demurrage and detention charges are incurred on rented containers if businesses fail to return them beyond the allotted free days. These costs pile up depending on the location where the cargo was shipped and the current port congestion. So, businesses often need to estimate the right period for the container to return so they don’t end up paying for the added costs. But what if political conditions act up or any other issue arises, leading to delayed return? So, a better approach will always be to purchase your own SOC, skipping the need to deal with such liabilities.
Allow You to Choose Premium Container
In the case of COCs, the carrier selects the container to rent. Businesses don’t have the right to object. However, when leasing SOCs, they can decide which one to choose, ensuring they score one with premium quality. This will ensure the safety of the goods throughout the shipping journey.
Convenient for Distant or Remote Locations’ Shipments
If you plan on shipping goods to distant or remote locations, leasing SOC will be a better approach. It will give you flexibility in the time span without D&D charges. Moreover, you can choose your routes unlike COCs, which only ship via specific popular routes. So, SOC is not only cost-effective but also more feasible.
To Avoid Hefty COC Charges
COC freight rates have been increasing over time, mainly due to port congestion in Asia, weather complications, peak shipping season in the US, and other such causes. However, opting for SOC will help you avoid worrying about the freight charges going up.
Help Prevent Empty Container Repositioning
When a COC is returned to the carrier after unloading, it often needs to be sent back to the port of origin or another location where there is demand. This can incur additional costs and logistical challenges. With a SOC, you can avoid these issues, as the container stays with your company for reuse, eliminating the need for empty repositioning and the associated expenses.
Part 5. Is It Worth Buying a Shipper-Owned Container?
As mentioned earlier, SOCs offer a great deal of flexibility and save you from loads of hassle. However, there are certain things that must be considered before purchasing a SOC, like your business’s unique shipping needs and cost. A Shipper owned container is a hefty one-time investment. For example, a 20-foot SOC can cost you somewhere between $1300 and $2000, whereas a 40-foot one costs between $1700 and $3000. But not one thing: most of the time, COC, along with the incurred D&D charges, costs you almost the same as the price of SOC.
However, if your business involves frequent shipment of substantial goods to a distant or remote location, a wise decision would be to get your own SOC. You can also consider purchasing a secondhand SOC to reduce the overall price.
Easily Ship SOC Container with NextSmartShip
Have you decided to purchase a SOC container? We recommend partnering with NextSmartShip for a smooth and seamless shipping experience. NSS is a dedicated platform that excels in offering the best shipping, packaging, and order fulfillment services. Their team features skilled personnel to ensure the goods remain safe and are delivered on time to the customer. But that’s not all! Their quoted prices are also affordable, opening the doors of success for small businesses. So, why not expand your reach and access overseas markets with the collaboration of NSS? Visit their website for more information.
Conclusion
It’s often difficult for companies to decide whether to rent a COC or purchase a SOC, especially those that ship goods often. However, by weighing the pros and cons of both options, they can make an informed decision. For instance, while SOC helps save on D&D charges and offers flexibility of routes, COC is an affordable option when shipping to closer locations or those that aren’t remote.
However, SOCs usually win the game because they offer many benefits, and the overall COC charges exclude the cost of a SOC, if not a brand new one, then a secondhand one. If you have planned to get your hands on your container, we recommend partnering with NSS. Their excellent services will surely make things easier for you.
