“What you need to know to use the SOS box
In international trade, COC boxes are usually used for shipment of goods, that is, shipping company boxes. But also encountered SOC box, that is, own box, also known as the owner’s own box.
What is a Shipper Owned Container?
A Shipper Owned Container (SOC) is a freight container owned by an independent individual or business. A Carrier Owned Container (COC) is the property of the carrier and is leased to the carrier’s consignee, while the SOC is the property of the shipper who then pays the carrier to carry the cargo for them by purchasing a slot in their truck Container charges or ships.
Where to Find Shipper-Owned Containers
Typically, a SOC can be found anywhere a COC is located. Although SOCs are often found on routes with less cargo, they are transported in the same way that carriers use to transport COCs. Below are the four most common freight SOC shipping methods.
cargo ship
The most common place to find a shipper-owned container is on a long sailing ship. Also known as cargo ships or container ships, they are designed to carry hundreds of metal SOCs of standard size 20 to 40 feet stacked on top of each other. Cargo ships play a key role in global shipping and trade operations.
Large ground transportation
Shipper-owned containers are also used for land transportation. Trucking is by far the most common form of ground transportation (the sheer size and weight of the SOC and COC require large trucks and engine power). However, rail freight continues to serve active freight on international shipping.
airplane
Air freight is used for expedited shipping and is also the most expensive method of shipping packages. Air freight requires specialized aircraft to accommodate SOC, COC, and other containers that can be loaded with cargo, and is more expensive.
multimodal transport
Multimodal transport refers to a transport mode in which a cargo container is transported to its unloading point in combination with the above transport modes. The farther the freight destination, the more likely the carrier will have to utilize multiple shipping strategies to complete the delivery.
SOC box operation process
1. Booking
The use of SOC boxes will reduce the shipping company’s box fee income. Therefore, SOC box booking is more difficult.
Compared with the shipping box, in addition to the different appointment number when booking, the shipping company has to check the box certificate, and the owner will accept the booking only after the box certificate is approved. If the booking party has its own SOC box, the box certificate can also be provided to the freight forwarder. After the freight forwarder has passed the review, the owner’s SOC box can be used for booking. Generally speaking, this cost is lower and the shipping cost will be lower. However, the box certificate review often results in the pre-allocated one day later than the owner’s box.
2. Take orders
After receiving the customer’s bill of lading, check the bill to see if there are any special terms and requirements for the bill of lading, and check with the shipping company whether it can be displayed.
When reviewing the order, pay attention to the Chinese name of the goods, HS.CODE. If it is a general chemical product, you need to provide MSDS, transportation condition appraisal certificate, the contact information of the consignor and the consignee, and check whether the consignor is a freight forwarder or a logistics company. If it is a freight forwarder, a copy of the NVOCC qualification certificate is required; if not, the booking will not be accepted unless the shipper information is changed.
3. Cabinets
When picking up the container, you need to rely on the forwarder’s release notice to pick it up, and the freight forwarder’s container management will indicate the pickup address and box number section in the container release notice. Put the box notice to knock on the team seal, and put the order to the shipping company to put it on site. There is only one entry page for the SOC box on-site, which is used for entering the terminal. Be sure to keep the team well. If it is lost, it will not be able to enter the port.
4. Return the box
When returning SOC containers, in most cases, foreign container owners designate return container yards. These depots are sometimes the same as the shipowners, sometimes in different places. Generally, the foreign agent of the freight forwarder will ask the consignee to sign a letter of guarantee for the return of the box to ensure that the box is returned to the accurate yard. If the SOC box is accidentally returned to the shipowner’s yard, and then shipped to another country by the shipowner, it will inevitably cause greater losses and cause disputes.
What is the difference between SOC and COC?
SOCs and COCs are often physically the same, sharing a designation such as a CSC license and an Approved Continuing Examination Program (or ACEP) certification. The only difference between a SOC and a COC is which party owns and is responsible for. Containers owned by the shipper belong to the shipper and are continually reused to ship the same product.
Containers owned by the carrier belong to the carrier or logistics company and are leased to consignees who do not have their own containers. After delivery, the COC is returned to the carrier, who then leases it to other customers. On the other hand, the SOC is returned to the shipper, who must store and maintain it independently of the carrier.
Benefits of using SOC containers
1. Avoid demurrage and demurrage
Demurrage and demurrage are two such charges that significantly impact the overall shipping budget. Demurrage is a charge issued when your cargo stays at a freight station for longer than a specified time, whereas demurrage is a charge imposed by a carrier for prolonged use. That means keeping the equipment longer than the contracted time frame, or it could mean keeping the trucks longer. It can happen for various reasons:
Customs Clearance – Typically, the customs clearance process takes 12 to 48 hours. But sometimes, if the inspector suspects there is any doubt, your transport unit may need to rest for a few days. Various circumstances can affect the delay or rejection of your shipment.
Permanent Rejection – There are several reasons for permanently rejecting a shipment. This could be a misdeclaration of the goods, undervaluation of the goods, or even in the case of import restricted products.
2. You get rid of freight LCL
Freight consolidation is a method in which various shippers within a specific geographic area combine their cargo into a single shipping unit, which is then transported to the port of destination, where the consolidated cargo is disassembled and delivered to an authorized holder. In this case, the shipper usually has to wait for the shipping unit to fill up.
The more days your box stays at the terminal, the more the box operator will charge. At this point, SOC Containers can be a boon for you.
3. Can be shipped to remote areas
In remote areas, the flow of transported goods and CTUs is erratic. Since they are not high surplus areas, shipping may be inflexible. You may have to wait a few days for the cargo box to be completely filled. These locations are known to have high process uncertainty, slow customization procedures and unreliable port operators. Using a SOC in a remote area can keep you away from this type of uncertainty
4. Acts as a backup when the port is congested
Overcapacity comes with the peak season. During peak/peak seasons, with some units being loaded and unloaded on and off the ship, respectively, import and export rates rose significantly. Port congestion is likely to occur because of delays in customs clearance as cargo increases. These units can stay at the dock for a few days, charging you demurrage and detention fees. Therefore, SOC boxes can also help you keep your money in your pocket during times of port congestion, especially during peak seasons.
5. Sets you free during peak season
High prices in peak season can be avoided. The demand for sea containers is increasing due to the large amount of cargo waiting to be delivered around the world. Freight containers are often in short supply due to increased demand.
In this case, having the container owned by the shipper proves to be beneficial to the exporter. You don’t have to worry about the shipping carrier’s container availability as you can easily deliver your cargo on time.
How expensive is the container owned by the shipper?
A SOC can cost anywhere from $1,300 to $3,000 or more, so you should check how and where you ship your goods before you invest. If you are transporting goods over long distances or to remote areas with frequent delays, or if you experience frequent delays, purchasing a SOC may be a worthwhile investment as it completely eliminates the hassle of demurrage and demurrage, While providing greater control over your supply chain.”
