Investor Presentaiton
Container Leasing
Benefits
Leasing customers are
primarily shipping
lines which generally
lease a large portion of
their container fleet
Given recent
consolidation, the top
10 shipping lines
represent ~85%
market share
Benefits
to
lessees
Flexibility to on-hire/off-
hire¹ containers to optimize
to
lessors
capacity to meet fluctuating
demand requirements.
Flexibility to on-hire/off-
hire containers at locations
around the globe to
alleviate trade imbalances.
Conserves capital for
significant cash
requirements such as
vessels, terminals, and fuel
costs.
Provides an alternate source
of financing in a capital
intensive business.
Leases are non-cancellable,
with terms typically ranging
5-13yrs (initial lease) and 1-
8yrs (renewals).
Long-term nature of leases
offers stable and predictable
cash flows with protection
during economic down
cycles.
Leases are "triple-net"
requiring the lessee to pay
for all repairs in excess of
normal wear and tear.
Lessees are incentivized to
renew expiring leases to
avoid repair costs and the
logistical cost of the return.
t
X
1)
2)
Container vessels slots by shipping line²
MSC
18%
Maersk
16%
CMA
13%
Container fleet ownership²
COSCO
11%
Hapag-Lloyd
7%
27M TEU vessel slots
serviced by 54M TEU
containers
Textainer
9%
All others
Top 6-10
20%
17%
Worldwide total slots: 27M TEU
Other lessors
41%
Shipping lines
50%
Worldwide total containers: 54M TEU
Containers can only be off-hired at the termination of the contractual lease term and are subject to provisions that limit the amount and location of returning containers.
Source: Harrison Consulting and Linerlytica.
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