What are the xChange terms and definitions?

Storage Fees per BIMCO

The storage fees are paid by the user, in cases whereby the user did not fulfill the accepted agreement and is meant to compensate the container supplier accordingly. In case all containers are picked up as per the agreement, there will not be any storage fees.

• My leasing deal is under the Standard Container Leasing Agreement, is this the right article?  No, please refer to SCLA | When are Storage fees applicable in a Leasing Deal?

When are storage fees applicable? 

1. If a Leasing Deal is cancelled by the user after it has been accepted, and the containers have been released. For example:

• The Storage Fee Agreed Upon in the Leasing Deal is 2 USD.
• The deal included a total of 10 containers.
• The release was provided by the supplier 20 days ago.

The user then decides that he does not need the containers anymore. That means the transaction is closed and the user is charged the below amount, which is then directly credited to the supplier.

10 Containers x 20 Days x 2 USD storage fee = 400 USD 

2. If only a portion of the total agreed amount of containers is being picked up and the user informs the supplier that the remaining quantity will not be picked up.
For Example: 

• The Storage Fee Agreed Upon in the deal is 2 USD.
• The deal included a total of 10 containers.
• The release was given 20 days ago.
• Only 5 of the 10 agreed containers are picked up.

Now the container user decides that he does not need the remaining 5 containers anymore. That means the transaction is moved to the "Dropoff" stage with only 5 units being picked up and the user is charged with the below amount, which is then directly credited to the Supplier.

5 Containers x 20 Days x 2 USD storage fee = 200 USD

3. If the release expires, the user only picked up one (or none) of the agreed containers, and the supplier does not want to extend the release or wait anymore, the supplier can then cancel the units and charge the user the agreed storage fees. For Example:

• The Storage Fee Agreed Upon in the Deal is 2 USD.
• The Deal included a total of 10 containers.
• The release was given with a validity of 14 days and now expired 20 days ago.
• Only 5 of the 10 agreed containers were picked up.

Now the container supplier decides that he does not want to extend the release and wait any longer for the user to pick up the remaining 5 containers.

That means the transaction is moved to the "Dropoff" stage with only 5 units being picked up and the user is charged with the below calculation, and it's directly credited to the container supplier.

5 Containers x (20+14) 34 Days x 2 USD storage fee = 340 USD

In this case, please tag @Support in the deal chat and let us know that you want to close the deal. We will then process it and the storage fees will be adjusted accordingly.

Freedays

The Freedays determine how many days the containers can be used for free after they are picked up. The count starts when the container is picked up and is calculated individually per container. The number of free days varies depending on the stretch and is negotiable for each deal. Note that during this time the supplier expects the user to use containers on the stretch agreed upon in the deal, not for transshipment. 

Per Diem

Per diem is the daily rental price of the container after the free days have passed. The per diem varies depending on container type and is negotiable for each deal.

Pick-up charge

The Pick-up Charge is a one-time charge for each container that is picked up that is negotiated for each deal. This charge can be paid by both the supplier and the user, depending on the market situation. For example; in locations where the supplier has a shortage of containers, the cost will typically be by the user while if the user picks up boxes from a location with a large surplus and moves it to a deficit location, then the supplier often pays the charge.

Note that this charge is not designed to cover a specific cost, but rather a general charge that would apply to the deal. The standard pick-up charge on xChange is $0.

DPP - Damage Protection Plan

DPP (Damage Protection Plan) is a protection for the user is granted by the supplier. This is the amount of cleaning and repair charges that must exceed after redelivery to be eligible for billing. You can insure your containers to cover the amount that exceeds the DPP. 

Meaning: If a user returns the container damaged but the repair price is less than the DPP, the user doesn’t have to pay for the repairs. If the repair costs are greater than the DPP, the user is invoiced for the amount above the DPP. The standard DPP on xChange is $100.

DRV - Discounted Residual Value

The DRV (Discounted Residual Value) specifies the value per container. This DRV is calculated by multiplying the depreciation rate (% of newbuild price) times the current age of the lost container. This sum is deducted from the new build price. The DRV cannot be lower than the minimum replacement value, which means that if the residual percentage is 50%, then a container with a newbuilt price of $3500 can’t become worth less than $1750 (50% of $3500) even after it is fully depreciated. This newly calculated value is the value used in the case of a total loss claim.