Container interchange explanation: When shipping lines have a surplus of containers in a given location, they arrange a container interchange agreement with another carrier that moves their empty containers to a location that has a deficit of containers or active requirements. Container imbalances are the result of trade imbalances, and carrier-specific inefficiencies and costs account for $20 billion globally. Since slots and containers are complementary service components in shipping – assets can be shared between partners. Most carriers use services like xChange to interchange containers and reduce repositioning costs.
However, sourcing partners for a container interchange can be difficult because of the lack of transparency in the market. The process usually starts with searching for new partners in your own network or on social media networks such as LinkedIn and Google. Finding the right contact person can take weeks, vetting the new partner and setting up legal agreements ads up on top of that. Although container interchanges are made to reduce container repositioning costs, the long process of finding new partners quickly kills profit margins. Thats why most shipping lines or container owners only have a few container interchange agreements in place.
But there is a solution which makes container interchanges more attractive for companies: Container xChange! With our online platform we connect container users and owners to help them find SOC containers and identify partners for repositioning (basically an interchange from two different perspectives). Through our efficient online workflow it is now easy to find new partners and get deals done while the platforms takes the time consuming, operational handling included in an container interchange for you.
Alternatives to interchanging containers with your partners is selling the equipment at the end of its lifecycle. But if you’re interested in interchanging your equipment instead of selling it to someone else, feel free to click on the banner below to see how xChange can help your business gain more efficiency.