Leasing and finance
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.
Why it matters
A drop-off charge can change the real cost of a lease. A cheap daily rate with a high return fee may cost more than a higher rate with a low fee. Lessors publish drop-off lists that show where returns are welcome and where they cost more. A common mistake is to plan a return at the closest depot without checking the list. Operators should check the list before they sign and when they plan a return. The term is a lessor-to-operator fee. A customer fee for picking up a rented unit is a different charge.
Read: How to price a container rental fleet
Definition source: onewaylease.com
Related terms
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.
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.
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.
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.
master lease
A master lease is a framework lease between a container owner and a lessee. Triton says its master lease suits companies that scale a fleet up or down with demand and need flexibility to pick up and drop off units. Exact terms differ by lessor, so each contract needs a careful read.
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.
For the industry
Grow your portable storage business with NPSA
Members get event rates, the Community Forum, the directory listing and leads from this website.
Need storage?
Get quotes from NPSA member companies
Tell us what you need and where. A member company that serves your area will contact you.