In order to increase the quality of transactions on xChange we have introduced storage fees to Leasing Requests.
The storage fees only need to be paid by the user, in cases whereby the user does not fulfil the accepted agreement and is meant to compensate the container supplier accordingly. In case all containers are picked up as per agreement, there will not be any storage fees. But in two situations the user will be charged with storage fees:
1. If a request is cancelled by the user after it has been accepted, released and the release is already confirmed.
2. If only a part of the agreed containers are being picked up and the container user informs the supplier, that he will not pick up the remaining quantity.
Example: The Storage Fee Agreed Upon the Request is 2 USD. The request included a total of 10 containers. The release was given and confirmed 20 days ago. Only 5 of the 10 agreed containers we re picked up. Now the container user decides that he does not need the remaining 5 containers anymore. That means the transaction is set to "picked up" status with only 5 units being picked up and the user is charged with 5 Containers x 20 Days x 2 USD storage fee = 200 USD which are directly credited to the container supplier.
3. If the release expired, the user only picked up a part or none of the agreed containers, and the supplier does not want to extend the release or wait anymore, the supplier can close the request/release and charge the user the agreed storage fees.
Example: The Storage Fee Agreed Upon the Request is 2 USD. The request included a total of 10 containers. The release was given and confirmed 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 set to "picked up" status with only 5 units being picked up and the user is charged with 5 Containers x (20+14) 34 Days x 2 USD storage fee = 340 USD which are directly credited to the container supplier.
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 freedays 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 transhipment.
Per diem is the daily rental price of the container after the freedays have passed. The per diem varies depending on container type and is negotiable for each deal.
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 or 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 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 newbuild 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 case of a total loss claim.