Industry and products
depot
A depot is a facility where empty shipping containers are stored and returned. Depots may be run by a shipping line, a container lessor or an independent company. An inland depot works like a container yard away from the port, where containers can be dropped, picked up and moved again.
Why it matters
Depots matter to operators who buy or lease containers. A lessor or seller may tell you to pick up a unit at a certain depot or to return it to one. Depot location changes trucking cost, since a closer depot means a shorter haul. A common mistake is to assume every depot will take any container at any time. Depots can set return dates, appointments and approved equipment lists, and a late or wrong return can bring charges. Always confirm the exact depot, the hours and the paperwork before you send a truck. Lessors such as Triton publish depot lists for their customers.
Read: Buying containers wholesale: A buyer's guide for operators
Definition source: terminal49.com
Related terms
container yard
A container yard is an area where shipping containers are stored, staged and moved between trucks, rail and ships. In shipping, a container yard sits at or near a port, rail terminal or inland depot and holds both loaded and empty containers.
on-hire
On-hire is the point when a lessee takes possession of a leased container. One Way Lease says the condition is documented on the equipment interchange receipt, and the on-hire record starts the clock. The term comes from container leasing and applies to similar equipment deals.
off-hire
Off-hire is the end of a container lease when the lessee returns the unit. One Way Lease describes it as the return process: the depot does a condition survey, the lease closes and the unit comes off the lessee's books. The term is common in container leasing.
per diem
Per diem is Latin for "per day." In container leasing, it is the daily rate a lessee pays for each day a leased container is on-hire after any included free days. Lessors use it to price short and flexible leases, and it adds up quickly on idle units.
drop-off charge
A drop-off charge is a one-time fee for returning a leased container to a depot. One Way Lease describes it as the fee at the destination depot for accepting the unit off-hire. It is lower where demand for re-use is high and higher where the lessor has too many empty units.
pick-up charge
A pick-up charge is a fee for collecting a container. In container leasing, One Way Lease describes it as a one-time fee at the origin depot for releasing a container into the lessee's possession. In portable storage rentals, companies often charge a separate fee to pick up a unit from the customer.
For the industry
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