The woes of the container leasing industry Online publication date: Sat, 24-May-2014
by Dong-Hua Wang
International Journal of Shipping and Transport Logistics (IJSTL), Vol. 6, No. 1, 2014
Abstract: Keeping leased and owned containers in proper balance is vital to the success of ocean carriers. Despite the long-running debate about the advantages of renting versus ownership, the leasing industry had retained control of a relatively stable share of global container fleet before 2004. However, lessors' initial cash investment return (ICIR) generated from new-build dry freight leases has been falling inexorably over the period of study (1992-2008). By assuming perfect substitution between owned and leased containers in container shipment, this paper finds that the Leontief cost functions is a good model in explaining leasing industry's long-run decline in ICIR.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Shipping and Transport Logistics (IJSTL):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com