Leasing and finance
fleet utilization
Fleet utilization is the percentage of a fleet's available time that it spends on productive, revenue-generating work. AUTOsist gives the formula as total utilized time divided by total available time, times 100. In a rental business, it shows how much of the fleet is working.
Why it matters
A portable storage operator can apply the idea to containers, trailers and delivery trucks. A container on rent counts as utilized. A container in the yard or in the shop does not. Trucks can be measured the same way by hours or days. A common mistake is to use one number for the whole fleet. A high figure for 20-foot units can hide idle 40-foot units. Operators should set clear rules for what counts as available and utilized, and apply them every month so trends are fair. Targets vary by business and season.
Read: How to price a container rental fleet
Definition source: autosist.com
Related terms
utilization rate
A utilization rate is the share of time that rental assets earn money. InTempo Software defines time utilization as how often assets are rented out. It is calculated as days on rent divided by days available. For example, 25,000 rented days out of 36,500 gives 68.5 percent.
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.
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.
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.
rental rate
A rental rate is the price charged for keeping a container for a billing period, often a month. Complete Container Services says a monthly rental rate generally refers to the cost of keeping the container for the agreed rental period. Delivery and pickup may be billed separately.
For the industry
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