Harmonized container leasing inspection criteria

In a significant breakthrough for the container shipping business, the two criteria currently used when inspecting containers during the interchange process between operators and leasing companies are now to be harmonised in a move which has been welcomed by the US-based Institute of International Container Lessors (IICL).

Until now, there have been two different interchange inspection standards: one managed by IICL and known as the “IICL-5” criteria; and the “Common Interchange Criteria” (CIC), administered by the CIC Group of leasing companies, comprising five of the world’s leading container lessors (Triton Container, Seaco, Florens Container Services, CAI and Blue Sky Intermodal) who represent over 50% of the world’s leased dry freight container fleet.

Launched in August 2007 as an alternative to the IICL-5 criteria – and endorsed the following year by the Container Owners Association – CIC has enabled shipping lines to benefit from a significant reduction in repair costs by eliminating unnecessary repair to containers. An additional advantage has been a more environmentally friendly approach to container maintenance, with reduced container handling.

Single standard

The harmonisation process has been undertaken by the leasing industry, which has recognised that the container business – shipping lines, leasing companies and container depots – will benefit from a single standard. Discussions have taken place in recent months between CIC members and the IICL as to how the two different criteria might be harmonised.

CIC and IICL have stated that both expect that the harmonised interchange standards will create a better path to more accurate estimates, less disputes and more trained professional inspectors.

Although there are some small adjustments to the most recent version of CIC, the new standard preserves all the main benefits offered by CIC. It also offers more consistent and accurate equipment inspections and repair estimates, bringing efficiencies to all parties.

The harmonisation is taking place simultaneously with the introduction of the IICL 6th edition into the industry (IICL-6).

The IICL says the benefits of the IICL-6 standard include the simplification and efficiency improvement of procedures for container inspections performed at container depots around the world. All current IICL container leasing member companies, Beacon Intermodal, CAI International, Florens Container Services, SeaCube Containers, TAL International Container have endorsed and will follow the IICL-6 criteria beginning 1 August 2016.

The updated version of the CIC standard is also scheduled to be introduced for off-hire activity taking place from that date.