Primary Sizes of Shipping Containers

Firstly, let’s break down the basics. Standard shipping containers come in two primary sizes: 20-foot and 40-foot. A 20-foot container has a capacity of 1,170 cubic feet and can carry up to 61,289 pounds. On the other hand, a 40-foot container, with a capacity of 2,700 cubic feet, can carry as much as 59,040 pounds. Notably, there are also “high cube” containers which offer an additional foot of height for those bulky items.

 The Volume and Weight of your Goods

Now, to make the right choice, you need to consider the volume and weight of your goods. If your goods are light but bulky, such as furniture or cotton, you may need a larger container to fit everything in. However, if your goods are heavy, such as machinery or steel, you may reach the weight limit before you fill up the space.

 Costs

Next, think about your budget. The larger the container, the higher the shipping cost. If you’re shipping smaller quantities, a 20-foot container might be the most cost-effective option. However, if you’re handling large volumes, a 40-foot container could be more economical, as the cost per cubic foot is often lower.

 Logistics

Also, consider the logistics at both your shipping and receiving ends. Do you have the space to accommodate a large container? Can your loading and unloading facilities handle it? If your site can’t accommodate a 40-foot container, but you need to transport a large volume, you can opt for two 20-foot containers.

Don’t forget about the future too. If you’re a growing business, opting for a larger container might be a wise decision even if you’re not at full capacity yet. This way, you can accommodate growth without needing to change your logistics set-up.

Lastly, consider the availability of different sizes in your region. Sometimes, specific sizes are more readily available than others, which could affect your decision.

Shipping Container Condition – New, Used, or Modified

If you opt to buy, another factor to consider is whether you need a new, used, or modified container. New containers come with a higher price tag but offer longevity, durability, and minimal maintenance. Conversely, used containers save on initial costs but may have wear and tear that might lead to additional maintenance expenses. Modified containers, tailored to specific needs like office spaces or pop-up shops, offer custom solutions but at a premium cost. Renting gives you flexibility as you can choose the type and condition of the container as per your immediate requirement without worrying about resale or maintenance.

 Flexibility and Mobility

If your needs are dynamic, renting offers extraordinary flexibility. You can upgrade, downgrade, or return the container based on changing needs without the hassle of reselling a purchased container. This is particularly useful for businesses that are growing, downsizing, or have volatile storage needs.

Financial Factors – Capital Outlay and Cash Flow

Purchasing a shipping container requires a sizable upfront investment, which may strain your financial resources, especially for small businesses or startups. Renting, with its predictable monthly costs, aids in maintaining an even cash flow and allows businesses to allocate capital towards other growth or operational expenses. However, the cumulative cost of long-term rentals could surpass the initial purchase price. Therefore, it’s essential to assess your financial capacity and business model before making a decision.

Duration of Use – The Key Determinant:

The first, and perhaps most crucial, consideration revolves around the duration for which you require the container. If your need is short-term or seasonal, such as for a one-off event, a construction project, or temporary storage, renting is the most sensible and cost-effective option. On the other hand, if you anticipate long-term or continuous use, purchasing a container might be more economical over time.

Resale Value

A purchased shipping container holds a fair resale value, especially if maintained well. However, the process of selling can be time-consuming and sometimes challenging, especially when demand is low. Renting eliminates this concern altogether.

Tax Implications

Businesses should also consider the tax implications of buying versus renting. Leasing costs can often be deducted as a business expense, potentially leading to significant tax savings. However, purchasing might provide depreciation benefits. It is recommended to consult with a tax advisor to help make an informed decision in this area.