Container Depot

My first post will be the Container Depot. This is where I started during my internship during my Diploma Studies in Logistics and where I see a real shipping container upfront for the first time.

 
 
Above is a typical container office used by container depots.

A Container depot is basically a warehouse to keep all the empty containers. Some of them also provide value added service like container repairs and modification.

This is a very important place for all players in the shipping container industry as this is one of the few places where you can keep a container. And also the very few place where containers can conduct a proper repair, provided the depot has a repair workshop.

Other places not limited to below where you can keep a container will be:
1) Container Port (PSA in Singapore)
2) Warehouse when it is preparing for stuffing/unstuffing of cargoes.
3) The Container Vessels

Different depot might operate differently depending on their customer requirements.

There are basically 2 cycle of operation, releasing of container and returning of container.

Releasing of Containers
1) Hauliers will enter the depot and report to the depot office's releasing counter with a container booking number.
   a) Container booking number are provided by the container owner to the depot and the customer.
2) After the depot counter has verify the booking number, he will provide the haulier with a flash card to flash to the Kalmar Lifter driver for collection.
3) Once the Kalmar driver saw the flash card, he will arrange to load a container onto the chassis for the haulier.
4) Upon receiving the container, the haulier will return to the depot counter with the container number and flashcard.
5) The depot counter will collect back the flashcard and process an Electronic Interchange Receipt (EIR) for the haulier with the container number.
   a) Depending on the purpose of the collection, a Depot Handling Charge (DHC) might be charged to the haulier.
6) After receiving the EIR, the haulier can now leave the depot and deliver the unit to the customer desire location.

Returning of Container
1) Haulier will enter the depot and park the vehicle at the Inspection Point for the inspector to do a general inspection on the container.
2) The Haulier will hand a Lorry Chit to the inspector to write the details of the container onto it.
3) After inspection, the Haulier will bring the Lorry Chit to the depot counter for processing.
4) The depot can only accept the container if there is a valid acceptance instruction from the container owner.
5) Upon confirmation at the depot counter, they will process a EIR for the Haulier.
   a) Depending on the purpose of the return, a Depot Handling Charge (DHC) might be charged to the haulier.
6) After receiving the EIR, the Haulier can now leave the depot.
7) Thereafter, the Depot Inspector will do a detail inspection on the container to locate all the damages on the container.
8) From the inspection, the inspector will draft a Estimate of Repair (EOR) with all the damages and recommended repairs.
9) Lastly, the inspector will send the EOR to the container owner for their approval to proceed the repair of the container.

Depot Utilization
Over the years, the utilization of the depot full capacity flatuates. When the market is good, Depot's turntime will increase and few containers will be stored.

However times are bad now, thus Depots all over the world are packed with containers and is severely congested.

In Singapore, land are scarces, thus Government has been limiting the land available for Container Depots Operators. Depot Operators are required to conduct Value added operations like warehousing in order to lease the land for Container Depot Operations. And even after the Depot Operator managed to bid and leased the land, they are mostly short term lease.

Depot operation requires large capital for the land and the lifting equipments. Having a short term lease might not allow the depot operator to turnover the investment in time. Thus causing many small operator to close down.