Leasing and finance
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.
Why it matters
For a portable storage operator, a master lease can add units for a busy season without buying them. The lessor sets daily rates and rules on where and when units can go back. Port Economics describes master leases as arrangements where the leasing company takes on full management. Other sources use the term more loosely, so the meaning varies. A common mistake is to assume the lessee can return units anywhere at any time. Drop-off locations and limits are usually in the contract. Operators should compare it with a fixed-term lease and check the total cost of ownership.
Read: Buying containers wholesale: A buyer's guide for operators
Definition source: tritoncontainer.com
Related terms
term lease
A term lease is a lease that runs for a fixed period. In container leasing it is often called a long-term lease. Triton describes long-term leasing as renting containers at a daily rate for a set term, with fleet costs fixed. At the end, the lease can be extended or the units returned.
spot lease
A spot lease is a short-term lease priced to current market conditions. Port Economics says short-term leases are also called spot market leases because the price is strongly influenced by supply and demand. The lessee gets equipment for a short, defined period without a long commitment.
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.
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.
For the industry
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