Container brokers can save you time in sourcing containers. However, traditional shipping container brokers are known to take huge cuts in deals, making the process quite expensive. Read this blog to find out how you can source containers through a digital platform safely without paying any commission.
For a long time, freight forwarders, NVOCCs, and shippers would source containers through shipping container brokers. However, it’s a highly manual and tedious process. The process involves manual sourcing of affordable containers in desired locations, searching for partners, vetting them, and negotiating deals. An important task, but also a very time-consuming one. Essentially, without digitalization, this process can take weeks, and sometimes even months. And we all know that time is money in the shipping industry.
Thankfully, with the advancement of technology and some great minds at work, we developed an online container marketplace that allows you to connect with 1700+ vetted members across 2500+ locations globally. This omits the need for any middlemen or container freight brokers, saving you money on container deals, brokerage, and time!
You want to see how? Try our public search below to find containers across the world with just a few clicks. Enter your pick-up and drop-off locations, and hit the search button. You can then take your pick from a list of containers, suppliers, and current leasing rates!
Who are container brokers?
Wondering who exactly container brokers are? Are they the same as a freight broker? In this rather complex industry, container brokers and freight brokers each have their roles to fulfill. So no, they’re not the same.
Shipping container brokers act on behalf of freight forwarders, NVOCCs, and shippers to source and lease containers. Often, they act as the lessor or lessee of containers. They connect shippers with carriers.
Whereas, freight brokers act as intermediaries between shippers and carriers. They negotiate rates, handle paperwork, coordinate, and ensure a smooth delivery of goods.
Role of shipping container brokers
Let’s understand the role of container brokers by looking at how they work. Let’s say you require specialized containers. Initially, you’ll reach out to your network of container suppliers. If you don’t find the containers or favorable deals, you’ll reach out to a container broker to help you lease or buy equipment. You’ll need to explain to the broker the type of cargo you want to ship and your equipment requirements. Along with that, you’ll also need to specify your budget and shipment locations.
Once that’s done, your broker will begin the hunt for your ideal container. They do this 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. Find out in our next section.
Downside of hiring a container broker
Shippers, freight forwarders, and NVOCCs have been using container brokers to source one-way containers for years. But when using a broker, the prices are often higher, and there’s no way to know if extra charges have been added to the final price due to a lack of transparency.
Additionally, you won’t receive comparisons on container prices and conditions. Obtaining process support is another issue not covered in the broker’s services. You’ll be dealing with payments, tracking containers, insurance, and other logistics management, all on your own.
Did you know: Container brokerage fees will cost you anywhere between $100 and $500? And this range is set to increase if you require more containers. Also, container availability on a busy route will hike the brokerage fees.
Hiring a container broker doesn’t sound as appealing as it did before, right? That’s why we’re here to introduce to you a transparent online container marketplace that takes care of all your container needs. Read on to see how our platform can provide a safe, transparent, and secure space for your business.
Container xChange vs traditional container brokers
Container xChange is an online container marketplace that enables you to buy, lease, and sell containers in 2500+ locations. On our platform, you can directly deal with container users and owners (without any broker), with average container price transparency and no hidden costs. Plus, you can do all of this without paying us any commission!
Take a look at the table below to find out why our platform is better than traditional brokers.
| Container xChange | Container brokers | |
| Focus | Container xChange has an international focus. Resulting in a worldwide network, with containers at 2500+ locations just a click away. | Container brokers usually have a regional focus. Giving them a limited but solid network at a regional level. |
| Scalability | There’s a high level of scalability on the platform. You can, at any time, increase or decrease the number of containers available. As well as expanding to other markets because of the international network. | There’s a low level of scalability when using container brokers. Due to the regional focus, it’s difficult to expand to other markets. The limited personal network reduces the ability to make changes in the container fleet. |
| Transparency | High level of transparency throughout the platform. You know who you work with and you know the prices. | Non-transparent concerning pricing, extra charges and finding partners. |
| Process support | As an xChange member, you’ll get full support when it comes to the vetting process, payment handling, tracking service, container surveying, and container insurance. | With a broker, you have to figure out the payment handling, container tracking, and insurance. All these are time-consuming and involve too many back-and-forth email correspondences. |
As you can see, our platform not only gives you transparency but also a solution to simplifying container logistics. From helping you source containers at the best possible prices to handling your payments and insuring your boxes. We’re here to support you through the entire process.
Want to know more about our marketplace? Become a member by clicking the banner below and let our experts give you a demo of the platform and get you your first container!
How to buy or lease containers at zero commission
Now that you know about the hefty fees that container brokers charge, it’s time to understand exactly how our platform works so you can avoid them.
On our platform, you can easily lease, buy or sell containers at no commission. If you’re not sure if you should lease or buy containers, check out this blog post.
Now let’s take a look at our leasing platform first.
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. For example, Shanghai to Los Angeles or Hamburg to Singapore.
However, on stretches where the final destination isn’t a lucrative position for the carrier, the prices of COCs go up.
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 with customs, you’ll have to pay a lot of money. More precisely, the carrier will charge you demurrage & detention charges.
That’s why, SOCs are becoming more and more popular among market players. They are a great substitute if you’re looking to cut expenses and regain control over your logistical operations.
Know more about the difference between SOCs and COCs: Check out this blog post
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. All from vetted suppliers and with negotiable terms. By omitting the broker in the process, you’ll end up saving money in leasing deals!
Want to explore leasing offers along your desired route? Click here and select the best deals now.
Buy & sell containers at the best price
If you’re planning on using containers frequently and for a long time, it’s better to buy the container instead. This way, you don’t have to worry about sourcing containers whenever your clients have a shipment.
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Pro tip: You can even lease your containers when not in use or sell them later at a profitable location. Check out how one of our members, Grunsky Trading Company, maximized their profits by doing exactly this. |
Container xChange allows you to connect with 1700+ vetted members in 2500+ 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 and negotiate better prices.
We understand it can be risky to deal with new partners, that’s why you can make payments through the xChange wallet. This way, you can ensure that your money is safe and keep track of all your payments in one place.
All this at zero commission! So why rely on brokers who charge you hefty fees when you can get better prices right here? Get the boxes you need at a price that matches your budget. Simply click on the banner below to get in touch with our experts today.
Container brokers: Common FAQs
Who are container brokers?
Container brokers act on behalf of freight forwarders, NVOCCs, and shippers to source and lease containers. Often, they act as the lessor or lessee of containers.
How do container brokers get paid?
Container brokers get a commission on every shipping deal they arrange. It’s anywhere between $100 to $500. This fee range is set to increase if you require more containers. The container availability on a particular route can also impact brokerage fees.
What are the pros and cons of hiring container brokers?
Container brokers can save you time in container deals. But they take huge cuts, and this commission is set to increase if you require more containers. Moreover, you can’t know if extra broker charges have been added to the final price, due to a lack of transparency.
