BIMCO | What is the redelivery process, and cost? (Drop-Off)

Before you keep reading, make sure...

Please make sure to double-check if the leasing deal you are working on is under BIMCO or our updated Standard Container Leasing Agreement. From the 21st of September, 2023, 00:00 CEST - All leasing transactions that are accepted from that point onwards will be governed by the new terms. Leasing transactions accepted previously will still be governed by the BIMCO Boxchange agreement.

• Where can I check if the deal is under BIMCO?

• For the full details refer to the article:  

  • Standard Container Leasing Agreement FAQ

All you need to know about the Redelivery or Drop-off 

Redelivery of equipment by the user to the supplier (and related costs) is regulated in the xChange Multiparty Agreement sections 6, 7 and 8.

For a full description of the legally binding process, please see here. 

In short 

• Once the User and the Supplier have both confirmed the drop-off location and date, the User is to request redelivery info (Drop-off Reference) from the Supplier one week prior to the actual Drop-off date (or at least 2 business days in advance).
  
  
• The Supplier is to provide redelivery information (Drop-off Reference number, Drop-off depot address, and contact info such as Depot's phone number & email) to the User as soon as possible (or at least 2 business days prior to the Drop-off date).
  
  
• The User is to confirm the return date of the units and the Drop-off Reference with the Supplier and most importantly with the DO Depot (and get written confirmation from the depot via email) to avoid any redelivery issues such as the depot rejecting the units or not recognizing the Drop-off Reference and resulting in truck runs.
  
  
• If the User does not provide advance notice to the DO Depot and the Supplier ➡ all costs about the unsuccessful redelivery (e.g., truck waiting time) are on the User's account.
  
  
• All costs related to the transport of the equipment to the DO depot are on the User's account.
  
  
• All depot and handling charges (e.g., gate-in fees, handling fees, storage fees, etc.) are on the Supplier's account.
  • • Note: Some depots (particularly in China) charge depot fees directly to the User's trucker. These costs can be claimed back from the supplier, see this article.
      
• The obligation to pay rental fees ceases on the date of the gate-in/drop-off. 
  
  
• After the redelivery/return of the equipment, the Supplier is to provide repair estimates (if any) and pictures within 5 working days. This kicks off the repair claim process as per repair claims. This process ensures maximum efficiency and fast turnaround of the units.
  
  
• In case the User requests a survey of the equipment, the Supplier is to make the equipment available for survey at his own cost.
  • • In case the Supplier does not make the equipment available for survey or releases the equipment before the survey has taken place, the Supplier automatically forfeits the right to claim damages and will bear all repair-related costs.

*The wording of the xChange Multiparty Agreement is legally binding.