x You are working in the field of Logistics, import-export and need to learn about container SOC - What does it stand for?
x You want to know what the benefits of SOC are, when can you use this cont?
x Are you wondering if there are any advantages or disadvantages to using SOC in import and export?
For some people who are new to the field of import and export, they probably still don't understand what SOC is? Therefore, at Proship.vn , we will update specialized knowledge about Shipper owned containers, including the concept, benefits, advantages and disadvantages of SOC and point out the differences of SOC compared to COC for relevant parties to clearly understand. to choose the right type of container.
What is the term SOC in import and export?
SOC is a term commonly used in the import-export industry. So, what is SOC? SOC is the abbreviation for "Shipper Owned Container" - a term that refers to who owns the container importing and exporting goods.
By definition, SOC refers to the types of containers that are privately owned by the Shipper. For the SOC form, the Consignee, after pulling the container to its own warehouse to pick up the goods, will be free to use it, without having to pay any DEM/DET fees to the shipping company. After the container is used, it can be re-exported and returned to the shipper or used for other purposes depending on the agreement of the parties when signing.
In fact, containers can belong to many parties such as: Shipping lines, Container sales companies, Transport companies (Carriers), Shippers.
SOC can be used in the following cases:
- When shippers need to transport goods to areas with difficult traffic conditions;
- When the shipper needs to transport goods according to the customer's specific request;
- When the shipper needs to transport goods to areas with special security regulations.
Distinguish between SOC containers and COC containers
Besides SOC, we can also encounter the concept of COC. If SOC refers to Shipper's container, COC "Carrier Owned Container", refers to the shipping line's container.
To distinguish between Cont SOC and Cont COC, you can look at the information on the container such as:
LATEST UPDATE PICTURES OF CONTAINER PROSHIP LOGISTICS TRACTOR
About the number on the container
If the first four letters of the cont number match the abbreviation name of the shipping company (for example: HLXU, MSCU, CGMU,...) then it is a COC Cont. If the first four letters of the container number are NONE or are different from the shipping company's abbreviation, it is Cont SOC.
About the logo on the container
If the container has the shipping company's logo (for example: Maersk, MSC, CMA-CGM,...) then it is a COC Cont. If the container does not have a logo or has the logo of the shipper, forwarder or non-ship carrier, it is a Cont SOC.
Benefits of SOC Shipper owned containers
Using SOC containers will help shippers ensure control, flexibility, and initiative in the process of transporting goods. Here are some benefits of Shipper owned containers:
Supply chain control
Shippers can control containers and be proactive in the process of providing packed containers.
In some places, because of the imbalance between import and export volumes, the number of available containers will be scarce, so using SOC will be more optimal.
Control costs
In fact, your use of SOC will make your shipping process more secure. Not only that, you can save on the cost of storing containers at the yard, especially in places with complicated import and export procedures.
Or are there many factors that make customs clearance or potential risks difficult for seaport managers and operators?
Risk reduction
Using SOC containers helps minimize the risk of choosing the wrong container, damaging goods and ensuring safety during transportation. This helps protect goods from adverse weather factors such as heavy rain, storms and floods, keeping goods undamaged.
Flexible and proactive
Using SOC Container helps shippers have more control and initiative during the transportation process. Especially effective for places with complicated import and export procedures or potential risks at seaports.
>>See more: What is CDCS certificate?
Advantages and disadvantages of SOC in import and export
What are the advantages and disadvantages of SOC in import and export will be shared by Proship as follows:
Advantages of using SOC
SOC containers have the following advantages:
- Shippers can control shipping costs;
- The shipper can ensure the safety of the goods;
- Shippers can save time and effort.
Disadvantages of using SOC
However, SOC containers also have disadvantages:
- Initial costs: Shippers must invest in purchasing or renting SOC containers. This cost can be quite large, especially for new containers;
- Difficulty in management: Shippers need an effective management system to track the location and status of SOC containers;
- Responsibility for preservation and operation: The shipper is responsible for the preservation and operation of the SOC container. This may require time and effort.
Some examples of disadvantages of SOC in import and export:
- If shippers buy SOC containers, they will have to pay a large amount of money from the beginning, which can cause difficulties for shippers with limited capital;
- If shippers rent SOC containers, they will have to pay monthly or yearly rental fees, which can increase overall shipping costs;
- Shippers need to have knowledge and experience in container transportation to preserve and operate SOC containers safely and effectively. Otherwise, they may encounter problems such as damaged containers, lost or damaged goods;
- Shippers need an effective management system to track the location and status of SOC containers. This can entail costs and time.
Proship Logistics has clarified the definition of what Soc is , what benefits and advantages Shipper owned containers have. Accordingly, those who are new to the field of import-export and logistics and do not understand clearly about SOC containers can update their knowledge from this sharing article to effectively serve their work... and when they need to use it. service at Proship, contact immediately 0909 344 247 .
