To Hire Or Buy Shipping Containers? Which To Choose?

After you have evaluated your needs and determined that you do, indeed, need one or several shipping containers, the next important decision you will need to make is whether to buy or hire the container(s). This can be a tough choice, so to help you out, we’ve put together this guide about the pros and cons of each option and which one you should choose.

Shipping containers are very versatile and have proven to be handy for a myriad of uses outside their normal realm of cargo transportation. In addition to storing goods, cargo containers can be modified and converted into different kinds of spaces including offices, houses, cafes, restaurants, bars, sheds, workshops, granny flats, and even swimming pools. The variety of buildings and structures you can build with the not-so-humble shipping container is virtually unlimited.

While the built-in utility of cargo containers and their usefulness for various purposes is undisputable, whether your situation requires you to buy the container outright or simply rent a shipping container is, on the other hand, debatable.

The pros and cons of hiring a shipping container

Let’s begin by weighing the pros and cons of hiring a shipping container.

PROS

1. Small initial capital outlay. Hiring a shipping container does not require as much initial capital as buying one. Additionally, the cost of hiring a container unit is staggered over the period of use which could be extremely helpful if you’re having cash flow issues.

2. No maintenance/repairs required. Since the cargo container is not your property, any repairs needed due to wear and tear that happens during normal use of the container will fall within the purview of the owner of the container. Thus, you won’t have to cater for these costs during your hire period.

3. Easy disposal. Not that the shipping container will be thrown away once you’re done using it, but having it removed from your care/responsibility is as easy as ending the hire agreement. The owner of the container will, hence, collect it and figure out what to do with it instead of you having to make arrangements for the same.

4. More options. Do you need different types of container models from time to time? Well, if you do, hiring gives you access to all the container models you require without having to spend a fortune to buy all the container variants you need. Simply hire the model you need at that particular moment and later have it switched to a different model when you need to. Also, if you’re not exactly sure which kind of container you need, hiring will help you test the waters before committing fully to buying one. If you have taken what you think is the best dropshipping course you may want to take into consideration how your products are shipped to your customers and what container is best suited.
   

5. Hire As-needed. If your need for a shipping container is sporadic or semi-regular, such as sporadic shipping or seasonal storage – whereby you could go for months without requiring one – then hiring would be the most cost-efficient choice for you. You can hire container units when you require them and give them back when they’re no longer required, ensuring you don’t lose money when they’re not in use.

CONS

1. Use limitations. There’s only so much that you can do with a rented shipping container. After all, it’s “borrowed” property. You, therefore, cannot make any permanent modifications on the unit as this could be a source of dispute with the owner once your lease is over. Also, if the container gets damaged during the hire period, the cost of repairs will fall on you.

2. It’s expensive in the long-term. If you plan on using the cargo container for multiple years, the cost of renting could surpass the cost of acquiring the unit outright. Furthermore, the unit will not be yours to keep at the end of the hire period even though you will have paid more than it would cost to buy it.

3. Delivery wait time. The logistics of hiring a shipping container and having it delivered to your location could take time, time you might not have if you need to use the container unit immediately – such as when perishable goods are involved. Not having the container on standby could cost you when you need to use the unit urgently.
   

The pros and cons of buying a shipping container

Now let’s examine the pros and cons of buying a shipping container.

PROS

1. No limitations on usage. After completing the buying process, you’ll outright own the container. And when the unit is yours, you’re completely free to do whatever you want with it. You can, therefore, make modifications to it to suit your specific requirements or use it however else you wish.

2. It’s an asset. Once you buy a shipping container, it becomes a useful asset that can generate income for you. You can hire out the shipping container when you’re not using it or sell it to recover part or the full amount you initially paid for it. You could even make a profit if you have made modifications to the container.

3. Convenience. When you purchase a shipping container, the unit will always be on standby and ready for your use. You can access the cargo container at any time you need to use it without having to order for a unit and wait until it gets delivered. This can be crucial if you’re dealing with perishables.

4. Cost savings. If you’re planning on using the cargo container for extended periods of time or indefinitely, the cost of buying the container could be cheaper than renting. Furthermore, you can sell the shipping container after you’re done using it to recover the money you had invested, saving you more money.

5. Durability and versatility. Because they’re durable and versatile, the usefulness of sea containers can be extended long after their originally intended purpose. You can transform your idle unit into a myriad of useful structures or simply use it to store stuff that you no longer have immediate use for.

CONS

1. It’s a bigger capital investment. While there’re quality shipping containers available for different kinds of budgets, acquiring a shipping container can still be a significant investment, especially when you’re strapped for cash. Container units that are too cheap could also be compromised on quality which could put your property at risk of damage.

2. Disposal could take time. Selling a cargo container that you no longer need, similar to selling any other type of property, could take time. It could take weeks or months to find a buyer and complete the transaction – all the while the container sits as idle capital.

3. You cover maintenance and repairs. Cargo containers are pretty hardy and durable, meaning that they don’t require very much in the way of repairs and maintenance. It will, however, be upon you to foot any repair and maintenance bills that may come about during your period of ownership. This is especially important if you would like to extend the lifespan of your container or sell it later after you are done using it.

 

Which option should I choose – buy or hire?

While there isn’t a one-size-fits-all answer to this question, we can conclude that ultimately the choice on whether to buy or rent a shipping container will depend on these key factors:

1. Intended use. If you need to make custom modifications on your container to suit your needs, then buying is the only option. You should also buy if your intended use will result in the container sustaining damage or unnatural degradation.

2. Duration of use. For extended usage, it would make more economic sense to buy the shipping container than to rent.

3. Nature of your need. For intermittent, sporadic or one-of use of shipping containers, hiring is the logical and economical way to go.

4. Urgency. If you need the cargo container to be immediately available whenever you need it without delay (e.g. a refrigerated container for storing perishable goods), then buying a unit and keeping it on standby is the way to go.

5. Budget. If you’re financially limited but still need a cargo container, hiring one is the ideal option for you as it allows you to spread the cost over the duration of use.

Put these factors into consideration when you’re making your buy-or-hire decision and you will, for sure, pick the best option for your particular needs.

 

 

 

Infographic by Tiger Containers