The Simplest Way to Container Sharing

One-for-One Swap

Containers on NCS are shared via one-for-one swap. It has no impact on carrier’s total fleet size.

Confidentiality

No confidential information would leak.

Lease Conditions Remain

Container swaps on NCS affect lease subjects only. All other conditions remain unchanged.

No Follow-ups Required

Containers swapped out on NCS are now leased by peers, so no follow-ups are required.

Container Sharing Done Right

NCS allows participants to enjoy the benefits of container sharing without the negative impacts on operation, since the total fleet size and lease terms remain unchanged and confidential, while void of all follow-up works.

Why We Build NCS?

Because we realize the current solution, one way free use, cannot effectively reduce the empty container repositioning cost, due to various limitations.

Limitations of One Way Free Use

Cargo Flows, and Off-hire Locations

Today’s one way free use practice is restricted by carriers’ shipping routes, cargo flows, and off-hire locations.

The pickup parties can only accept containers at deficit ports where they have cargos to the off-hire locations. This restriction largely limits the applicability of the method.

Free-Use Days and Waiting for Redelivery

In one way free use, the release party must wait for the containers’ redelivery, which can take from days to weeks. Also, the pickup party is typically given 30 to 90 free-use days, which decreases the release party’s return on asset. The situation is made worse if misuse happens.

High Tracking Cost and Follow-up Works

One way free use requires a lot of follow-up works for both the release and the pick-up parties. Additional time and resources are spent by both parties, from negotiating the sublease agreements to keeping track of container statuses to settling disputes.

Neptune Container Swap

Not Restricted by Cargo Flows and Off-hire Locations

On NCS, no containers need to be returned since it works on a direct swap basis. As a result, swaps can be made between any two ports, regardless of cargo flow and shipping routes. This method allows for a much bigger scale of practice.

No Free-Use Days, No Wait for Redelivery

Unlike one way free use, container swaps on NCS are instant. They require no free-use days and there’s no need to wait for redelivery. Your containers’ return-on-assets are therefore not compromised.

No Follow-Up Works

NCS requires absolutely no follow-up works. Once both containers in a swap are released, the process is completed.

Not Limited Between Surplus and Deficit

Swaps on NCS are not limited between surplus and deficit. Surplus-to-surplus or deficit-to-deficit swaps can also be made as long as cost can be lowered. For example, release from a surplus feeder port and accept at a surplus mother port still help carriers save a lot of cost.

The Benefits of Joining NCS

CARRIERS

Improve Financial Structure

With leased containers having higher efficiency and lower empty repositioning cost, carriers will find replacing owned containers with leased containers favorable. Having less owned containers means less capital expenditure and less fixed cost, resulting in a more flexible financial structure.

Increase Container Efficiency

NCS provides a way to obtain containers on demand instantly, which help carriers decrease container turnaround time thus achieve higher efficiency. It further leads to lower container pending cost and higher return.

Reduce Empty Repositioning

Carriers save significantly from reduced empty container repositioning cost through swaps on NCS.

LEASING COMPANIES

Additional Revenue

By joining NCS, leasing companies enjoy an additional source of revenue, as NCS pays service fees on carriers’ behalf. This amount of income will be substantial because of the sheer volume of container swap.

Enlarge Market Size

In order to maximizing savings from container swaps, carriers will use more leased containers in favor of owned containers. Therefore, participating leasing companies will enjoy an enlarged market share.

Value-Added Service

Over the years, the homogeneity of container service resulted in rental price becoming the priority consideration for lessee. Now with container swap as a value-added service, participating leasing companies will be able to differentiate themselves from their competitors.

Reduce Empty Repositioning

Not limited to carriers, leasing companies can perform container swaps with their lessees as well. By doing so, leasing companies can release their idle containers and accept containers in areas of demand. Leasing companies therefore can also reduce empty container repositioning, decrease idle cost, and improve utilization.

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Revolutionary Solution to Minimize Empty Container Repositioning Cost