--- title: "per diem: Definition and Meaning | NPSA" description: "Per diem is Latin for \"per day." url: https://npsa.preview.multisites.ai/glossary/per-diem publisher: National Portable Storage Association (NPSA) phone: "(816) 960-6552" email: info@npsa.org --- Leasing and finance # 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. ## Why it matters An operator who leases containers from a lessor sees per diem on every invoice. One Way Lease explains that free days come first and per diem starts after them. A unit that sits in a yard for weeks still costs money every day. This is why fast turns matter. A common mistake is to compare rates without counting free days, drop-off charges and pickup charges. The cheapest daily rate may not be the cheapest deal. Operators should read the lease for the exact start date, the end date and what stops the clock. Per diem also appears in other trades with a different meaning, such as travel pay. [Read: How to price a container rental fleet](https://npsa.preview.multisites.ai/guides/pricing-a-container-rental-fleet) Definition source: [onewaylease.com](https://onewaylease.com/guides/one-way-lease) ## Related terms [### 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.](https://npsa.preview.multisites.ai/glossary/master-lease)[### 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.](https://npsa.preview.multisites.ai/glossary/on-hire)[### 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.](https://npsa.preview.multisites.ai/glossary/off-hire)[### 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.](https://npsa.preview.multisites.ai/glossary/drop-off-charge)[### 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.](https://npsa.preview.multisites.ai/glossary/pick-up-charge)[### 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.](https://npsa.preview.multisites.ai/glossary/utilization-rate) [All 220 terms](https://npsa.preview.multisites.ai/glossary) 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. [Join NPSA](https://npsa.preview.multisites.ai/join-us)[See member benefits](https://npsa.preview.multisites.ai/member-benefits) 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. [Request a quote](https://npsa.preview.multisites.ai/request-a-quote)[Which unit do I need?](https://npsa.preview.multisites.ai/find-storage)