Shipping container brokers: What you need to know [+ a commission-free alternative]

Shipping container brokers can save you time when sourcing containers. However, they’re known to take huge cuts, making the process expensive. Read this blog to find a commission-free alternative that is safe and easy to use.  

Traditionally, freight forwarders, NNVOCCs, and shippers have sourced containers through shipping container brokers. However, it’s a tedious process involving manual sourcing, vetting partners, and negotiating deals. 

Essentially, without digitalization, this process can take weeks, and sometimes even months. Read on to learn about the pros and cons of using a container broker and tips to save time and money.

What’s a shipping container broker?

Shipping container brokers act on behalf of freight forwarding companies, NVOCCs, and shippers to source containers. Often, they act as the lessor or lessee of containers, connecting shippers with carriers. 

Wondering how they differ from freight brokers? Freight brokers differ from container brokers, as they act as intermediaries between shippers and carriers. They negotiate rates, handle paperwork, coordinate, and ensure a smooth delivery of goods. 

Role of a shipping container broker

Let’s understand the role of container brokers by looking at how they work. Initially, you’ll reach out to your network of container suppliers. If you don’t find the containers you’re looking for, you’d traditionally reach out to a container broker to help you lease or buy equipment. 

When dealing with a broker, you’d need to explain to the broker the type of cargo you want to ship and your equipment requirements. Along with that, you’d also need to specify your budget and shipment locations.

Once that’s done, your broker would begin the hunt for your container by reaching out to their existing network and shortlisting potential partners. Typically, container brokers also negotiate leasing rates on your behalf. 

Although it seems easy to assign the task of finding containers to brokers, there are also downsides to hiring them. We’ll find out more in the next section.

Shipping container brokers: Traditional vs. online platforms

Let’s compare traditional container brokers to using an online digital container marketplace to source containers.

Traditional brokers

Container brokers usually have a regional focus, giving them a limited but solid network at a regional level. They’re also not transparent regarding pricing, extra charges, and finding partners, so you could be in for a surprise when you’re landed with your bill.

With a broker, you have to figure out the payment handling, container tracking, and insurance. All of these aspects are time-consuming and involve back-and-forth email correspondence. 

Online platforms

An online container marketplace like Container xChange, enables you to buy, lease, and sell containers globally. It also helps you deal with container suppliers directly, and see container prices upfront. 

You’ll also get full support when it comes to payment handling, tracking your units, container inspections, and insurance all under one dashboard.

Not to forget, digital platforms allow you to simplify your container logistics process while giving you the transparency you’re looking for. From helping you source containers at the best possible prices to financial services like payment handling, plus container insurance, an online marketplace supports you through the entire process.

How to buy and lease containers commission-free on xChange

Now that you know about the pros and cons of using a broker, it’s time to understand exactly how you can lease or buy containers on our online platform.

Lease shipper-owned containers (SOCs) on your desired route

Most traditional brokers are only able to source carrier-owned containers (COCs) from their regional network. COCs are popular for standard shipments on stretches with high cargo flow. 

However, on stretches where the final destination isn’t a lucrative position for the carrier, the prices of COCs go up drastically.

Apart from surcharges on freight rates, it won’t take much for COC containers to become an expensive ordeal for you. And if they’re stuck at the ports or in customs, you’ll be shelling out even more in demurrage & detention charges. 

That’s why SOC containers are becoming increasingly popular among market players. They’re a great substitute if you’re looking to cut expenses and regain control over your logistical operations.

On Container xChange, you can easily source SOC containers at the best rates. By simply stating your requirements, like container pickup and drop-off location, you’ll be presented with multiple offers to choose from.

Buy and sell containers at the best price

If you’re planning on using containers frequently and for a long time, it’s better to buy them instead. This way, you don’t have to worry about sourcing containers whenever your clients have a shipment. 

Container xChange allows you to connect with 1,700+ vetted members in over 2,500 locations globally. After filling in your requirements, such as container type and location, you can choose the best deals from a wide range of options. Plus, you can connect directly with the seller to negotiate a price that fits your budget. 

We understand it can be risky to deal with new partners; that’s why you can make all payments through the xChange wallet. This way, you can ensure that your money is safe and keep track of all payments in one place. 

All of this at zero commission! So why rely on brokers who charge you hefty fees when you can get better prices right here? Get the shipping containers you need at prices that fit your budget—hassle-free. Simply click on the banner below to get in touch with our experts today.

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