What is a SOC container?

A shipper-owned container (SOC) is a container that is not owned by a carrier, but by an independent person or entity. In contrast, a carrier-owned container (COC) is the property of the carrier that is leased to shippers for a small fee.

The main advantage of a SOC container is the absence of the need to pay demurrage and/or deduction to carriers. Demurrage is charged for the delay in clearing a container at the port, and demurrage is charged for the delay in returning empty containers after the cargo has been removed. These fees can be quite significant.

If a shipper intends to transport cargo long distances or to remote areas where delays are common, or if it experiences frequent delays, purchasing a SOC container can be a worthwhile investment as it completely relieves the shipper of deduction and demurrage fees while ensuring greater control over the supply chain.

When the container is owned by the shipper, he has the ability to control the clearance of the cargo. In addition, there is no question of returning the empty container since it is the property of that person. The shipper can decide and set the exact date for customs clearance, thereby avoiding demurrage fees.

SOC also means that the shipper does not have to worry about the carrier's availability of containers to ship their cargo, especially during peak seasons or periods when empty containers are not available on the market. A shipper with an SOC will simply need to reserve space with the shipper.