What are Storage Fees?
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.
How are Storage Fees decided?
In order to keep the platform as neutral and fair as possible, storage fees will now be part of the request terms - initially there will be a default value set (similar to per diems) but you and your partner are free to negotiate and set these based on each request. You can also negotiate for there to be no storage fees at all - but like any terms both parties must agree to this.
How can I avoid storage fees?
- Pick up all containers you agreed on.
- Only accept container quantities you can actually utilize. If you are unsure if you can utilize the whole container quantity, split your business in multiple deals.
- Only accept a request if you are sure you can pick up the containers in the next 2-3 weeks (or per release validity)