One of the most significant costs to the operator of a containerized freight service is that of container equipment rental--either explicitly via the medium of leasing companies, or implicitly as the cost of invested capital. If the cost of equipment rental can be reduced without an accompanying reduction in revenue, then the realized saving will go almost totally to profit. Such efficient utilization of equipment is the goal of what is generally called "equipment control", and entire departments and sophisticated computer systems have been devoted to it. Unfortunately, one of the most promising methods for increasing equipment utilization is not used. That method is the free exchange of equipment among owners. Such a system has been in use by the railroads for decades and there is no theoretical reason why such a system should not work for ocean carriers. To this date, it has not worked (in general) and the opportunity losses are enormous. This paper explores the reasons why no viable container exchange system has evolved. A design for a workable container exchange system, taking into account the previously stated objections, is presented.

  • Supplemental Notes:
    • Proceedings of Second International Waterborne Transportation Conference, October 5-7, 1977, New York City. Available April, 1978, approximately 750 pages. Cost: to ASCE members $15.00; non-members $30.00. Also available from Engineering Societies Library.
  • Corporate Authors:

    American Society of Civil Engineers

    345 East 47th Street
    New York, NY  United States  10017-2398
  • Authors:
    • Levine, S P
  • Publication Date: 1977

Subject/Index Terms

Filing Info

  • Accession Number: 00170791
  • Record Type: Publication
  • Source Agency: American Society of Civil Engineers
  • Report/Paper Numbers: Proceeding
  • Files: TRIS
  • Created Date: Mar 14 1978 12:00AM