Leasing and finance
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.
Why it matters
Off-hire is where disputes happen. If the survey finds damage beyond normal wear, the lessee may owe repair costs. Lessors often limit which depots accept returns, and some charge a fee. A common mistake is to return a unit without recording its condition at drop-off. Operators should clean units, keep photos and ask for the survey report. They should also confirm when per diem stops. Some leases stop it when the unit is gated in, others when the lessor accepts it. Check the agreement for the exact rule, and keep the dated record of the return in case a bill arrives later.
Read: How to price a container rental fleet
Definition source: onewaylease.com
Related terms
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.
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.
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.
container survey
A container survey is a formal inspection of a container by a qualified surveyor, with a written result. Surveys check that a container meets safety standards, such as the CSC, before shipping. They can also support valuation and damage assessment. Costs vary by provider.
container condition report
A container condition report is a written record of a container's condition at one point in time. It lists findings such as dents, holes, rust, floor and door issues, usually with photos. Operators use it when units leave or return, using criteria such as the IICL inspection guide.
container repair
Container repair is work that fixes damage to a container, such as holes, dents, floors and doors. The IICL repair manual says the purpose of any repair is to restore structural integrity so the container can work safely in intermodal transport. Methods include straightening, welding, patching, inserting and replacing parts.
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