How can the cabotage container save your business tons of dollars? Read on to find out how “cabotaging” your containers can protect you from extra expenditures during shipping.

Defining the cabotage container

Now, to understand cabotage containers you need to explore the issue of empty container repositioning. Which is a common occurrence in container logistics. This movement of empty containers represents a wasted capacity, especially on routes where substantial domestic traffic is available for parallel movement by road or even by rail. It’s also an extremely costly affair.

In order to curb, these issues, organizations like CONCOR (Container Corporation of India) offer the facility of “cabotage” to shipping lines that wish to move empty containers as balancing movements.

A “cabotaged” container is used for a one-way trip. It is effectively loaned by the shipping company to the carrier ( CONCOR) for a very short period (one way trip). During this trip, the carrier is permitted to use the container for the movement of domestic cargo.

By “cabotaging” these containers, CONCOR can, therefore, offer a substantial discount to both shipping lines and the potential domestic client. This is seen as an area of focus and strategy to boost volumes and profitability. This is done by providing the assets temporarily to a different company. This firm then uses the boxes for its own freight. The idea is, that the boxes are then returned to a location where the container owner needs them again.

This use of the one way cabotage container helps in moving empty containers from surplus to deficit locations. If you’re a container user, you get your cargo moved to its desired location by paying the usual freight charges. And if you’re a supplier you lease your box for one journey, without incurring the costs of empty container repositioning and other port surcharges.

cabotage containers

How Container xChange can help you source cabotage containers to curb empty container repositioning

Unfortunately for potential cabotage users and suppliers, the market is not very transparent and efficient. Finding partners, negotiating and administering contracts, tracking your containers, billing and invoicing, etc. are still challenges that all container users and suppliers like you face. Not to forget, this can be a cumbersome and time-consuming process. That’s why we at Container xChange aim to make this market more accessible, transparent, and resourceful.

We provide a neutral online platform where you can find, negotiate and execute one-way transactions. There is still a long road to travel – and too many containers are still moved empty. But Container xChange change can support the transition to a more efficient cabotage market.

So how do we do this? By “cabotaging” your container with one-way leasing! For both parties, we offer only vetted players. As all our members go through a mandatory background check before they become a part of our platform. You can also see the performance reviews and partner ratings of company profiles and decide who you want to work with.

As a container user, you have a certain free period (typically 90 days) to use the container. Thus, you can keep the costs for the move at a minimum or optimal level or even eliminate them completely. And as an owner, you find and work with only certified users to move your boxes one way. You can also automatically update your one-way offers and find new partners. This allows you to save on the cost of repositioning and improves your company’s carbon footprint.

Every member on our platform fills out the industry standard contract – the BIMCO agreement. With BIMCO, you can have the bill of lading and other standard agreements available to you in an electronic format using BIMCO’s online pay-as-you-go charter party editing system. This helps in facilitating smoother negotiations and accelerating the work process.

You can connect with 1000+ vetted members and get access to 10,000+ containers to choose from. Thanks to our market price transparency feature, you can compare various prices shown listed upfront and negotiate deals that best suit your budget. It’s time to find boxes at competitive prices with zero hidden fees.

Ready to get started on a good deal on your cabotage? Then click the banner below.

Cabotage Container: Common FAQS

What is a cabotage container?

A cabotaged container is effectively loaned by the shipping company to the carrier for a very short period, usually a single one way trip.

Why is it called cabotage?

The term originates from the shipping industry and is referred to coastal shipping, the journey from cape to cape along the coast. Cabotage is based on the French “caboter” for “going from port to port”.

What are the advantages of a cabotage container?

The advantages can be perceived in the form of lower insurance costs, lower risk of accidents, and lower chances of cargo being robbed or stolen. Therefore, the merchandise has a greater guarantee.

What is the Jones Act law?

The Jones Act, also known as the Merchant Marine Act of 1920, is a federal statute establishing support for the development and maintenance of a merchant marine in order to support commercial activity and serve as a naval auxiliary in times of war or national emergency.

Ultimate guide: Cabotage container and its advantages [2022]
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Ultimate guide: Cabotage container and its advantages [2022]
Get the low down on cabotage container and help save money on empty repositioning costs. Read our blog to find out how.
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Container xChange
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