The eXcesS Capacity online marketplace facilitates the rental, sale, purchase, and transportation of shipping containers. In a prior blog post titled “eXcesS Capacity in Shipping Containers”, I discussed how owners monetize underutilized shipping containers by selling and renting them via the marketplace. Examples of posting Seller listings to sell shipping containers were given with one simple example of posting a Seller listing to rent a shipping container. In this post we’ll further explore ways in which owners leverage the marketplace to optimize selling, renting and transporting containers with more attention given to renting shipping containers.
To demonstrate the eXcesS Capacity marketplace application, we’ll define 6 business locations and their distance in miles as shown in Diagram 1. Table 1 lists the business entities at each location. To make it easier to identify, we will reference these entities by their respective single letter location. With this information, we’ll construct shipping container pick up, delivery and return transportation scenarios.
Diagram 1 Business Entities Locations
Table 1 Business Entities [8]
|
Location |
Business Entity |
Username |
Member ID |
|
A Vidalia, GA Universal Storage 803 Donovan St, Vidalia, GA 30474 |
ABC Company is renting a 40ft standard Institute of International Containers Lessors (IICL) rated shipping container from XYZ Company. |
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|
B Walterboro, SC Warehouses of Walterboro 832 S Jefferies Blvd, Walterboro, SC 29488 |
DEF Inc. is XYZ Company’s next customer to rent the 40ft standard IICL rated shipping container after ABC Company’s monthly lease ends. |
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|
C Savannah, GA JIT Warehousing & Logistics 216 E Lathrop Ave, Savannah, GA 31415 |
XYZ Company’s primary location from which the 40ft standard IICL rated shipping container originated. |
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|
D Charleston, SC COWs of Charleston 3955 Christopher St, Charleston, SC 29405 |
A satellite location of XYZ Company. |
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|
E Albany, GA Southeastern Freight Lines 1115 Centennial Ave, Albany, GA 31707 |
Nationwide Truckers Inc, a 3rd party trucking company, which transports shipping containers. |
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F Cottageville, SC Cottageville Express 10661 Cottageville Hwy, Cottageville, SC 29435 |
GHI Retail, Inc. is a business located near (15 mi) DEF Inc. |
An objective of this demonstration is to efficiently move a shipping container owned by C to A then to B after A’s lease ends, provided locations C and D do not have the same type of shipping container available.
Sellers Specify Buyer Shipping Options
In the eXcesS Capacity marketplace, Sellers have 3 options when specifying what shipping delivery method their Buyers may choose when renting or buying a container. [See Note #1].
Option 1 Pick Up Only. There is no fee charged to the Buyer. A Buyer must arrange their own transportation to pick up the container and deliver it to the Buyer’s location.
Option 2 Shipping Included [See Note #2]. This option includes a fixed fee specified by the Seller to deliver the first container and a separate fee for each additional container delivery. These fees are added to the total purchase price amount charged to the Buyer.
Option 3 Pick Up and Shipping. This gives Buyers a choice of selecting either Pick Up Only or Shipping Included as their shipping delivery method.
The number of trips and delivery terms vary depending upon whether the container is rented or sold. If a container is sold, then there is a one-time container delivery from the Seller to the Buyer. My prior blog post titled, “eXcesS Capacity in Shipping Containers”, gives examples of Seller listings and pricing options in selling shipping containers.
Container Rental
However, if a container is rented, then the logistics are more complex in terms of delivering the container to the renter, picking up the container after the renter’s lease term expires, delivering the container to the next renter, returning the container to the owner if no “next” renter exists, etc. These are all factors to consider in setting shipping fees [See Note #3]. The following are examples of container rental options.
Container Rental with Buyer Pick Up Only Delivery Option
In posting a new Seller listing in the Transportation/Containers category/subcategory, where the Seller has specified a container is for rent and the Buyer’s only delivery option is “Pick Up Only” [See Note #8], these are the logistics transactions eXcesS Capacity must process. This scenario is based upon a container rental price completely separate from the container transport price [See Note #10].
The container transport cost is obtained from a nationwide hauling transport service via a quote [1]. A markup is optionally applied by the quote requester (eg the owner “Seller” who is renting the shipping container to the “Buyer”) to the quoted price and posted as a Load in the Transportation/Loads category/subcategory.
Given container rental with pick up only option, Table 2 below itemizes the conditions and Seller listings, and Buyer listings where resources are wanted for transporting loads, associated with each logistics transaction.
Table 2 Container Rental with Buyer Pick Up Only Option Logistics Transactions
|
Listing ID |
Listing Link |
Move |
Freight Hauled |
Trips |
Description |
|
1 |
A |
Container |
0 |
Initial rental of container at location C from owner C to renter A by C.
[Seller C posts Listing ID 1 in Transportation/Containers category/subcategory at location C.] A pays C for n number of months rental, where n is at least the minimum rental months specified by Seller C. n = 6 months for testing purposes. 12/15/19 is the beginning of the test lease term. [Buyer A pays Seller C via Listing ID 1.] If there are no more of these types of containers at location C, then C will close Listing ID 1 and reopen it when a container becomes available. |
|
|
2 |
C → A |
Container |
2 by C |
Initial rental delivery of container at location C from owner C to renter A by C.
Seller C obtains a quote from a nationwide hauling transport service to create a transport load listing from location C to location A. Seller C marks up 10% ($85) the load delivery charge ($850) quoted by E = $935 total. [Seller C posts Listing ID 2 in Transportation/Loads category/subcategory from location C to location A.] 12/15/19 is the Load Pick Up Date. Seller C notifies, via eXcesS Capacity messaging, Buyer A of the transport load Listing ID 2. A pays C only for the initial delivery charge transported by C. [Buyer A pays Seller C via Listing ID 2.] Trips C (w/Container) → A (dropped) → C |
|
|
3 |
B |
Container |
0 |
Subsequent rental of container at location A from owner C to renter B by C.
[Seller C posts Listing ID 3 in Transportation/Containers category/subcategory specifying pick up location A. This is done prior to the end of the container lease term leased by A.] [Seller C will have posted Listing ID 1 in Transportation/Containers category/subcategory at pick up location C, provided there is a supply of similar containers at location C.] [Seller D may have posted Listing ID 4 in Transportation/Containers category/subcategory specifying pick up location D.] Given the 3 options of a container available at locations A, C, and D, Buyer B will choose D due to its proximity. See [Note #4] regarding how C can optimize repositioning of empty containers to support D → B. [Buyer B pays Seller D via Listing ID 4.] The following alternatives 1 to 5 apply if neither Seller C nor Seller D has a similar container to rent and the container must be picked up from location A. |
|
|
4 |
A |
Container |
0 |
Initial rental of container at location D from owner C to renter B by D.
[Seller D posts Listing ID 4 in Transportation/Containers category/subcategory at pick up location D.] B pays D for n number of months rental, where n is at least the minimum rental months specified by Seller D. 06/15/20 is the beginning of the lease term. [Buyer B pays Seller D via Listing ID 4.] If there are no more of these types of containers at location D, then D will close Listing ID 4 and reopen it when a container becomes available. |
|
|
5 |
D → B |
Container |
2 by D |
Initial rental of container at location D from owner C to renter B by D.
Seller D obtains a quote from a nationwide hauling transport service to create a transport load listing from location D to location B. [Seller D posts Listing ID 5 in Transportation/Loads category/subcategory from location D to location B.] 06/15/20 is the Load Pick Up Date. Seller D notifies, via eXcesS Capacity messaging, Buyer B of the transport load Listing ID 5. B pays D only for the initial delivery charge transported by D. [Buyer B pays Seller D via Listing ID 5.] Trips D (w/Container) → B (dropped) → D |
|
|
6 |
A → B |
Container |
2 by A |
Alternative 1.
Delivery of empty container at location A from owner C to renter B by A (initial renter). Seller A obtains a quote from a nationwide hauling transport service to create a transport load listing from location A to location B. [Seller A posts Listing ID 6 in Transportation/Loads category/subcategory at origin pick up location A transporting to destination location B.] 06/15/20 is the Load Pick Up Date. [Buyer B pays Seller A via Listing ID 6.] Trips A (w/Container) → B (dropped) → A |
|
|
7 |
A → B |
Container |
2 by B |
Alternative 2.
Delivery of empty container at location A from owner C to renter B by B (next renter). [This is an off-platform transaction. B is absorbing the container delivery cost.] Trips B (trailer only) → A (w/Container) → B (dropped) |
|
|
8 |
A → B |
Container |
3 by C |
Alternative 3.
Delivery of empty container at location A from owner C to renter B by C (container owner). Seller C obtains a quote from a nationwide hauling transport service to create a transport load listing from location A to location B. [Seller C posts Listing ID 8 in Transportation/Loads category/subcategory at origin pick up location A transporting to destination location B. Seller C may apply a markup to the price.] [Buyer B pays Seller C via Listing ID 8.] Trips C (trailer only) → A (w/Container) → B (dropped) → C |
|
|
9 |
A → B |
Container |
3 by D |
Alternative 4.
Delivery of empty container at location A from owner C to renter B by D (a satellite office of container owner C). Seller D obtains a quote from a nationwide hauling transport service to create a transport load listing from location A to location B. [Seller D posts Listing ID 9 in Transportation/Loads category/subcategory at origin pick up location A transporting to destination location B.] 06/15/20 is the Load Pick Up Date. [Buyer B pays Seller D via Listing ID 9.] Trips D (trailer only) → A (w/Container) → B (dropped) → D |
|
|
10 |
A → B (Want) |
Container |
0 |
Alternative 5.a.
Delivery of empty container at location A from owner C to renter B by E (trucking company). Renter B is buying the hauler service from E. * Note it is appropriate that a request for a Load to pick up by another hauler (not the company making the request) is placed in the Transportation/Loads category/subcategory as a “Wanted” order type, since this is where all loads are reviewed. Instructions on how trucking companies must respond in producing a hauler quote in the Transportation/Hauler Quotes category/subcategory are detailed in HowItWorks.xscapacity.net. Seller B obtains a quote from a nationwide hauling transport service to create a transportation loads “wanted” listing from location A to location B. (eg in the description state “We will consider Seller prices up to $1000 for this hauling service.”) Seller B enters information regarding the transportation loads “wanted” from location A to location B in the eXcesS Capacity Hauler Request Form. Description details of the transportation loads “wanted” include Shipping Container Size: 40 Foot Shipping Container Type: Standard Shipping Container Rating: IICL (Premium) Load Price: $1,000 Load Pick Up Date (yymmdd): 200615 Load Pick Up Address (Google Maps URL): Load Destination Zip Code: 29488 Load Destination Address (Google Maps URL): https://www.google.com/maps/place/832+S+Jefferies+Blvd,+Walterboro,+SC+29488/@32.896201,-80.6763693,17z/data=!3m1!4b1!4m5!3m4!1s0x88feafcdaabafe6d:0x66155aa400abfd7f!8m2!3d32.896201!4d-80.6741752 Load Trailer Length: 40 foot Load Weight (Lbs): 8160 ** Note yellow highlighted fields above are not custom data entry fields defined in the Transportation/Hauler Quotes category/subcategory. [The eXcesS Capacity Wanted Administrator reviews the above “Want Request” and posts with Wanted Tag “1912131352020001” Listing ID 10 in Transportation/Loads (Wanted) category/subcategory at pick up location A.] |
|
|
11 |
A → B |
Container |
3 by E |
Alternative 5.b.
Delivery of empty container at location A from owner C to renter B by E (trucking company). [Seller E posts Listing ID 11 matching Listing ID 10 in Transportation/Hauling Quotes category/subcategory at pick up location A.] Seller E sets the Hauler price to $999. Seller E specifies Wanted Tag “1912131352020001”. [Buyer B pays Seller E via Listing ID 11.] Trips E (trailer only) → A (w/Container) → B (dropped) → E |
|
|
12 |
A → F (Want) |
Load |
0 |
Request for quote of a Less-than-truckload (LTL) load of pallets at location A from owner F to retailer F.
Buyer F (a retailer near Location B) has a load of 8 pallets [6] x 2,000 lbs/pallet = 16,000 lbs [5] of retail items (Less than truck load) to pick up from Location A and wants delivered to Location F. See [Note #11]. Buyer F has paid for the merchandise on the pallets and is only interested in transportation to have the merchandise picked up from Location A and delivered to Location F. Buyer F obtains a quote from a nationwide hauling transport service to create a transportation loads “wanted” listing from location A to location F of just the 8 pallets. Seller F enters information regarding the transportation loads “wanted” from location A to location F in the eXcesS Capacity Hauler Request Form. Description details of the transportation loads “wanted” include 8 pallets 40in width x 48in length x [6in pallet + 72in clothing = 76in heighth] Clothes. Freight Class 175 [7] 2,000lbs per pallet Load Price: $200 Load Pick Up Date (yymmdd): 200615 Load Pick Up Address (Google Maps URL): Load Destination Zip Code: 29435 Load Destination Address (Google Maps URL): Load Trailer Length: 40 foot Load Weight (Lbs): 16000 Link to Photo of Clothes on Pallets https://www.liquidatorsguide.com/wp-content/uploads/20140510_1154561.jpg ** Note yellow highlighted fields above are not custom data entry fields defined in the Transportation/Hauler Quotes category/subcategory. [The eXcesS Capacity Wanted Administrator reviews the above “Want Request” and posts with Wanted Tag “2001091747000001” Listing ID 12 in Transportation/Loads (Wanted) category/subcategory at pick up location A.] |
|
|
13 |
A → F |
Container+ Load |
5 by E |
Delivery of (full/partially) loaded container containing 8 pallets of clothes as specified in Listing ID 12 at location A from container owner C and load owner F to F retailer (to unload contents) by E (trucking company). See [Note #5].
This Listing ID 13 works in combination with Listing IDs 10 and 11 and 12. Buyer F obtains a quote from a nationwide hauling transport service to create a transport load wanted listing from location A to location F (reference Listing ID 12). [F posts Listing ID 12 to pick up 8 pallets x 2,000 lbs/pallet = 16,000 lbs [5] of retail items (Less than truck load) in Transportation/Loads (Wanted) category/subcategory from (near) pick up location A to location F.] [Seller E posts Listing ID 13 matching Listing ID 12 in Transportation/Hauling Quotes category/subcategory at pick up from (near) location A to location F.] Seller E sets the Hauler price to $200 for the 8 pallets of apparel. Seller E specifies Wanted Tag “2001091747000001”. [Buyer F pays Seller E for delivery of load contents inside container via Listing ID 13.] Trips E (trailer only) → A (w/Container) → A (pick up load in Container) → F (Load dropped) Note E continues on from Location F with the empty container to Location B (reference Listing ID 11). F → B (Container dropped) → E |
|
|
14 |
Varies |
Container or Load |
1 |
This is a link to an “eXcesS Capacity Hauler Request Form” which requests a quote from a nationwide hauling transport service. The requester provides details of a load pick up and delivery including
. eXcesS Capacity Member ID . business contact information . quote request type [empty container only, cargo load only, container and cargo load, other] . container tare weight (empty) [list standard tare weights for each size and type, + other] . container size . container type . desired delivery date . container handling equipment available (eg crane, forklift) at origin and destination . cargo load weight (lbs) . cargo load dimensions (inches) [height x width x depth] . container doors positioned to [Front or Back] . origin location . destination location . other relevant details The requester receives an emailed quotation from a nationwide hauling transport service. A quote of container and/or load transport utilizing this hauling service is useful in creating a load wanted listing or in engaging the hauling service directly separate from the eXcesS Capacity platform. |
In separating the variable transportation costs of pick up and delivery from the rental price, the value of this approach is shipping container rental prices are comparable and competitive within the geographic markets they serve. Sellers have the option of posting comparable shipping containers priced to rent by location (eg Seller listing prices may vary in locations such as Chicago, New York, Los Angeles, etc.) or as location-independent (eg one Seller listing per container type priced on a national scale at one location) [See Note #9]. The variable transportation cost posted as a Load in the marketplace is a more accurate reflection of the true transportation costs.
Container Rental with Shipping Fee Included Option 2
In posting a new Seller listing in the Transportation/Containers category/subcategory, where the Seller has specified a container is for rent and the Buyer’s only delivery option is “Shipping”, these are the logistics transactions eXcesS Capacity must process. This scenario is based upon a container rental price with a shipping fee included in the total container transport price. The container transport cost is a fixed fee specified by the Seller.
Given container rental with shipping fee included option, Table 3 below itemizes the conditions and Seller listings, and Buyer listings where resources are wanted for transporting loads, associated with each logistics transaction.
Table 3 Container Rental with Shipping Fee Included Option 2 Logistics Transactions
|
Listing ID |
Listing Link |
Move |
Freight Hauled |
Trips |
Description |
|
100 |
C → A |
Container |
2 by C |
Initial rental of container at location C from owner C to renter A.
[Seller C posts Listing ID 100 in Transportation/Containers category/subcategory at location C.] A pays C for n number of months rental, where n is at least the minimum rental months specified by Seller C, and a fixed shipping fee to transport the container from C to A. Note the shipping fee may include 1) initial delivery only or 2) initial delivery and pick up when the lease term ends. Clearly state shipping fees in the Terms and Conditions section of the Description area. Since the Buyer’s location is unknown, Seller C specifies $750 as the fixed shipping fee with the condition “Shipping fee includes delivery within 150 miles of pick up location. A separate delivery fee is required beyond 150 miles from the pick up location. Buyer please contact Seller with details of your destination location.” specified under Terms and Conditions. [Buyer A pays Seller C via Listing ID 100.] If there are no more of these types of containers at location C, then C will close Listing ID 1 and reopen it when a container becomes available. Trips C (w/Container) → A (dropped) → C |
|
|
101 |
B |
Container |
0 |
Subsequent rental of container at location A from owner C to renter B.
[Seller C posts Listing ID 101 in Transportation/Containers category/subcategory specifying pick up location A. This is done prior to the end of the container lease term leased by A.] Since the Buyer’s location is unknown, Seller C specifies $750 as the fixed shipping fee with the condition “Shipping fee includes delivery within 150 miles of pick up location. A separate delivery fee is required beyond 150 miles from the pick up location. Buyer please contact Seller with details of your destination location.” specified under Terms and Conditions. [Seller C will have posted Listing ID 100 in Transportation/Containers category/subcategory at pick up location C, provided there is a supply of similar containers at location C.] [Seller D may have posted Listing ID 102 in Transportation/Containers category/subcategory specifying pick up location D.] Given the 3 options of a container available at locations A, C, and D, Buyer B will choose D due to its proximity. See [Note #4] regarding how C can optimize repositioning of empty containers to support D → B. [Buyer B pays Seller D via Listing ID 102.] The following alternatives 201 to 205 apply if neither Seller C nor Seller D has a similar container to rent and the container must be picked up from location A. Since Buyer B is renting the container from Seller C at location A with a delivery fee included, Seller C is the Buyer of the transportation service from location A to location B. |
|
|
102 |
D → B |
Container |
2 by D |
Initial rental of container at location D from owner C to renter B.
[Seller D posts Listing ID 102 in Transportation/Containers category/subcategory at pick up location D.] B pays D for n number of months rental, where n is at least the minimum rental months specified by Seller D, and a fixed shipping fee to transport the container from D to B. Note the shipping fee may include 1) initial delivery only or 2) initial delivery and pick up when the lease term ends. Since the Buyer’s location is unknown, Seller D specifies $750 as the fixed shipping fee with the condition “Shipping fee includes delivery within 150 miles of pick up location. A separate delivery fee is required beyond 150 miles from the pick up location. Buyer please contact Seller with details of your destination location.” specified under Terms and Conditions. [Buyer B pays Seller D via Listing ID 102.] If there are no more of these types of containers at location D, then D will close Listing ID 102 and reopen it when a container becomes available. |
|
|
103 |
D → B (Want) |
Container |
0 |
If D does not have the capability to transport the container, then an option is delivery of empty container from location D to renter B by E (trucking company). D covers the cost of the delivery by E since renter B has already paid D via Listing ID 102.
Delivery of empty container at location D from owner C to renter B by E (trucking company). Seller D is buying the hauler service from E. * Note it is appropriate that a request for a Load to pick up by another hauler (not the company making the request) is placed in the Transportation/Loads category/subcategory as a “Wanted” order type, since this is where all loads are reviewed. Instructions on how trucking companies must respond in producing a hauler quote in the Transportation/Hauler Quotes category/subcategory are detailed in HowItWorks.xscapacity.net. Seller D obtains a quote from a nationwide hauling transport service to create a transportation loads “wanted” listing from location D to location B. (eg in the description state “We will consider Seller prices up to $750 for this hauling service.”) Seller D enters information regarding the transportation loads “wanted” from location D to location B in the eXcesS Capacity Hauler Request data entry form. Description details of the transportation loads “wanted” include Shipping Container Size: 40 Foot Shipping Container Type: Standard Shipping Container Rating: IICL (Premium) Load Price: $750 Load Pick Up Date (yymmdd): 200615 Load Pick Up Address (Google Maps URL): Load Destination Zip Code: 29488 Load Destination Address (Google Maps URL): https://www.google.com/maps/place/832+S+Jefferies+Blvd,+Walterboro,+SC+29488/@32.896201,-80.6763693,17z/data=!3m1!4b1!4m5!3m4!1s0x88feafcdaabafe6d:0x66155aa400abfd7f!8m2!3d32.896201!4d-80.6741752 Load Trailer Length: 40 foot Load Weight (Lbs): 8160 ** Note yellow highlighted fields above are not custom data entry fields defined in the Transportation/Hauler Quotes category/subcategory. *** Note add a “Maximum Load Price” field to the Hauler Request Form. [The eXcesS Capacity Wanted Administrator reviews the above “Want Request” and posts with Wanted Tag “2001231822060001” Listing ID 103 in Transportation/Loads (Wanted) category/subcategory at pick up location D.] |
|
|
104 |
D → B |
Container |
3 by E |
Delivery of empty container at location D from owner C to renter B by E (trucking company).
[Seller E posts Listing ID 104 matching Listing ID 103 in Transportation/Loads category/subcategory at pick up location D.] [Buyer D pays Seller E via Listing ID 104.] Trips E (trailer only) → D (w/Container) → B (dropped) → E |
|
|
6 |
A → B |
Container |
2 by A |
Alternative 201.
Delivery of empty container at location A from owner C to renter B by A (initial renter). Alternative 201 is the same as Listing ID 6. If A has paid C for pick up charges and B has paid C for initial delivery charges, then C must reimburse A for pick up charges. Alternative 201 applies if A, in addition to reimbursement from C, wants to earn money transporting the container A rented from C to the next renter B. This scenario fairly reimburses A for 2 trips to and from B and C avoids having to make 3 trips C to A to B to C. Seller A obtains a quote from a nationwide hauling transport service to create a transport load listing from location A to location B. Note this utilizes Listing ID 6 with the exception that Seller C, instead of Seller B, pays Seller A. [Seller A posts Listing ID 106 in Transportation/Loads category/subcategory at origin pick up location A transporting to destination location B. Seller A notifies Seller C via XSC messaging that the load listing was created.] 06/15/20 is the Load Pick Up Date. [Seller C pays Seller A via Listing ID 6.] Trips A (w/Container) → B (dropped) → A |
|
|
105 |
A → B |
Container |
2 by B |
Alternative 202.
Delivery of empty container at location A from owner C to renter B by B (new renter). [If B paid for delivery, then B submits its transportation costs to C who reimburses B.] Alternative 202 applies if B, in addition to reimbursement from C, wants to earn money transporting the container A rented from C to the next renter B. This scenario fairly reimburses B for 2 trips to and from B and C avoids having to make 3 trips C to A to B to C. Seller B obtains a quote from a nationwide hauling transport service to create a transport load listing from location A to location B. The hauler quotes, not posted on XSC, $1000 for transporting an empty container from location A to location B. [Seller B posts Listing ID 105 in Transportation/Loads category/subcategory at origin pick up location A transporting to destination location B. Seller B notifies Seller C via XSC messaging that the load listing was created.] 06/15/20 is the Load Pick Up Date. Note payment to Seller B is required via Stripe since Buy002 only has Stripe set up as their payment gateway. [Seller C pays Seller B via Listing ID 105.] Trips B (trailer only) → A (w/Container) → B (dropped) |
|
|
106 |
A → B |
Container |
3 by C |
Alternative 203.
Delivery of empty container at location A from owner C to renter B by C (container owner). Since C owns the container and renter B has paid for delivery, C absorbs the cost of delivery less the fixed shipping fee delivery charge to B. Trips C (trailer only) → A (w/Container) → B (dropped) → C |
|
|
107 |
A → B |
Container |
3 by D |
Alternative 204.
Delivery of empty container at location A from owner C to renter B by D (a satellite office of container owner C). Since renter B has paid D to deliver the container, D absorbs the cost of delivery less the fixed shipping fee delivery charge to B. Trips D (trailer only) → A (w/Container) → B (dropped) → D |
|
|
108 |
A → B (Want) |
Container |
0 |
Alternative 205.a.
Delivery of empty container at location A from owner C to renter B by E (trucking company). This is similar to Listing ID 10 except D, not B, is buying the hauler service from E. However, B may not have created Listing ID 10, therefore D must create a similar Listing ID 108.
Buyer D obtains a quote from a nationwide hauling transport service to create a transportation loads “wanted” listing from location A to location B. (eg in the description state “We will consider Seller prices up to $1000 for this hauling service.”) Buyer D enters information regarding the transportation loads “wanted” from location A to location B in the eXcesS Capacity Hauler Request Form. Description details of the transportation loads “wanted” include Shipping Container Size: 40 Foot Shipping Container Type: Standard Shipping Container Rating: IICL (Premium) Load Price: $1,000 Load Pick Up Date (yymmdd): 200615 Load Pick Up Address (Google Maps URL): Load Destination Zip Code: 29488 Load Destination Address (Google Maps URL): https://www.google.com/maps/place/832+S+Jefferies+Blvd,+Walterboro,+SC+29488/@32.896201,-80.6763693,17z/data=!3m1!4b1!4m5!3m4!1s0x88feafcdaabafe6d:0x66155aa400abfd7f!8m2!3d32.896201!4d-80.6741752 Load Trailer Length: 40 foot Load Weight (Lbs): 8160 ** Note yellow highlighted fields above are not custom data entry fields defined in the Transportation/Hauler Quotes category/subcategory. [The eXcesS Capacity Wanted Administrator reviews the above “Want Request” and posts with Wanted Tag “2001291614340001” Listing ID 108 in Transportation/Loads (Wanted) category/subcategory at pick up location A. After posting Listing ID 108, the Wanted Administrator sends a message with a link to the listing to the requester (D) via the XSC internal messaging system.] |
|
|
109 |
A → B |
Container |
3 by E |
Alternative 205.b.
Delivery of empty container at location A from owner C to renter B by E (trucking company). [Seller E posts Listing ID 109 matching Listing ID 108 in Transportation/Hauling Quotes category/subcategory at pick up location A.] Seller E sets the Hauler price to $998. Seller E specifies Wanted Tag “2001291614340001”. [Buyer D pays Seller E via Listing ID 109.] Trips E (trailer only) → A (w/Container) → B (dropped) → E |
|
|
12 |
A → F (Want) |
Load |
0 |
Delivery of load at a location near A from owner F to retailer F by E (trucking company).
Buyer F (a retailer near Location B) has a load of 8 pallets [6] x 2,000 lbs/pallet = 16,000 lbs [5] of retail items (Less than truck load) to pick up from Location A and wants delivered to Location F. See [Note #11]. This is the same as Listing ID 12. |
|
|
13 |
A → F |
Container+ Load |
5 by E |
Delivery of (full/partially) loaded container containing 8 pallets of clothes as specified in Listing ID 12 at a location near A from container owner C + load owner F to F retailer (to unload contents) by E (trucking company). See [Note #5].
This is the same as Listing ID 13. This Listing ID 13 works in combination with Listing ID 12. Trips E (trailer only) → A (w/Container) → A (pick up load in Container) → F (Load dropped) → B (Container dropped) → E |
Conclusion
Owners can monetize underutilized shipping containers by selling and renting them via the eXcesS Capacity marketplace. The logistics of renting shipping containers is more complex than selling them. Logistics scenarios, with pick up only and shipping included options, are given of how an owner of a shipping container can efficiently facilitate rental, delivery and return of the shipping container to subsequent renters.
Notes
[Note #1] When posting a new listing in the Transportation Category / Containers Subcategory, Sellers must select the Listing Type “Renting out with fixed shipping fee option” and under “Delivery Method” in the listing select either
. Option 1 “Pickup” or
. Option 2 “Shipping” or
. Option 3 “Pickup and Shipping”
If “Shipping” is selected then a fixed price shipping fee is specified. If Price per “item” is specified, then a fee for each additional item is specified.
[Note #1] If a Buyer is given a shipping option and elects to have an item shipped, then given the conditions of shipping (eg location, distance, priority, time to deliver, etc.) [2] the Seller may have to absorb the amount over the actual total shipping cost.
[Note #3] Container owners (Sellers) providing containers to rent may have an option to set a fixed shipping fee price high enough to cover the relevant transportation costs for rental container delivery and pick up. Given this is a fixed fee, depending upon the shipping conditions (eg delivery date, distance transported, container size, etc.) it may not cover the actual shipping costs [See Note #2].
[Note #4] If Seller C has 3 Seller listings at A, C, and D for the same container, then Buyer B is motivated to rent from location D or C since they are closer to B. C can reduce the rental price of the container at location A to reduce its transportation costs of C → A → B. This is not an issue if a prospective Buyer is closer to A than C or D.
The opportunity for C is to optimize the (re)positioning of its containers. In this instance, B will want to rent from D given its close proximity, provided D has a similar container listed. If location D does have a container listed and does not have the container in inventory, then it may retrieve or outsource the transport of the container from A to B and charge B for transporting the container from D to B.
In the XYZ company network, there may not be a Buyer for the container at location A within the required time frame. Hence, C would have to absorb the cost of picking up the container from location A and transporting it to location C. Possibly, C could negotiate a later pick up from location A at no charge until C has acquired another renter of the container.
[Note #5] There are opportunities to increase revenues and reduce expenses when transporting an empty container by arranging to transport full or partial loads from the origin location to a destination location. This is accomplished by posting loads, similar to how loads are posted in trucking load boards such as DAT TruckersEdge [3], in the eXcesS Capacity marketplace.
[Note #6] There is an opportunity for a 3rd party freight forwarder on the eXcesS Capacity marketplace to provide a service locating loads to haul in empty container lanes and connecting those opportunities to trucking companies that can haul those loads. Possibly 3rd party freight forwarders can price their services 1. as a percentage of the load value or 2. at a fixed fee per load or 3. at an hourly rate.
[Note #7] To more easily identify what logistics services are included in the price of a product listing, a custom field titled “Price Includes” with the following checkbox options
“Delivery”
“No Delivery”
“Return”
“No Return”
“Not Applicable”
has been added.
[Note #8] “Pick up” only is available to Buyers with Option 1 and Option 3 where the Buyer selects “Pick up”.
[Note #9] The eXcesS Capacity search bar allows visitors to specify keyword(s) search terms and a specific or generic location. For example, entering the search term “Container” and location “Kansas City, MO, USA” yields search results ranked in order of proximity in miles. Click on List View to view in rank order from closest to farthest. Entering the search term “Container” and location “USA” yields search results for the entire USA. Click on Map View to view all applicable list item locations.
[Note #10] Regarding container delivery the Seller has 3 alternatives
_1. If the Seller has appropriate transportation, the Seller can provide the Buyer with a separate quotation for container transport based upon their own transportation rates.
_2. The Seller can outsource the container transport to a third party hauling transport service and optionally apply a markup to the third party quoted price to the Buyer. Alternative 2 is the scenario defined in the section titled, “Container Rental with Buyer Pick up Only Delivery Option”.
_3. The Seller can completely outsource container delivery to the Buyer, who may arrange to either a) pick up the container themselves or b) request a third party hauling transport service to provide a quote.
[Note #11] The owner of the product(s) transported “the Load” within a shipping container is responsible for obtaining the requisite cargo insurance from an insurance provider. The eXcesS Capacity marketplace is a platform where insurance providers may list cargo and other types of insurance coverage.
References
[1] https://xscapacity.sharetribe.com/en/listings/845848-hauling-transportation-service
[2] https://news.ewmfg.com/blog/how-less-than-truckload-ltl-freight-rates-calculated
[3] https://www.dat.com/load-boards
[4] https://www.vantagefreight.com.au/wp-content/uploads/2013/01/Container-Dimensions.pdf
[5] https://en.wikipedia.org/wiki/Less_than_truckload_shipping
[7] https://www.fmlfreight.com/freight-101/freight-classes/
[8] XSC_Test_Users_Cases_v03.xls
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