Deciding whether to buy or lease a Refrigerated Container (Reefer) is one of the most significant capital expenditure decisions a logistics manager or shipper will make. Unlike standard dry containers, Reefers are high-tech, high-cost assets. The choice between ownership and leasing hinges on your operational volume, route stability, and financial flexibility.
1. Understanding the High Cost of Reefer Ownership
Buying a Reefer unit means taking on the full financial burden and logistical complexities of the asset for its entire lifespan.
- Initial Purchase Price: The initial investment for a new Refrigerated Container is substantially higher—often four to six times the cost of a standard dry box. This immediately ties up significant working capital.
- Maintenance and Repair (M&R): Reefers are complex machines with active cooling units. M&R costs are constant and high, covering specialized parts, labor, and regular technical checks like Pre-Trip Inspection (PTI) to ensure the unit is operational.
- Depreciation: The value of the asset depreciates over time, requiring accounting for the reduction in value on your balance sheet.
2. The Repositioning Problem: A Hidden Ownership Cost
For companies that own their Special Equipment, the cost of moving an empty unit—known as repositioning—can quickly erode profits.
- Imbalance: If you ship frozen goods from point A to point B, you are left with an expensive, empty Reefer at point B. If there is no demand for Reefer export back to A, you must pay the full logistics cost to ship the empty unit back to a deficit location where it’s needed again.
- Leasing Mitigation: When you lease, the container company (lessor) often assumes or manages the complexity and cost of repositioning the empty unit once the lease term is over, offering a crucial logistical relief.
3. Leasing: The Advantage of Flexibility and Predictability
Leasing a Reefer shifts many costs and risks away from the shipper, offering financial flexibility, especially for uncertain demand.
- Capital Preservation: Leasing requires minimal upfront capital, allowing businesses to save cash for core operations.
- Seasonal Spikes: Leasing is ideal for handling seasonal demand (e.g., peak seafood season or a specific fruit harvest). You only pay for the Reefer Unit when you need it, avoiding the cost of an idle asset during the off-season.
- Simplified M&R: Maintenance and technical repair costs are often included in the lease agreement, providing predictable monthly expenditure and eliminating unexpected M&R invoices.
4. When to Buy vs. When to Lease
The optimal strategy depends entirely on the stability and scale of your cold chain demand:
| Scenario | Recommendation | Rationale |
| Buy | High-Volume, Established Routes | When you have a reliable, high-frequency, two-way route (e.g., shipping from A to B and getting a consistent re-load from B back to A). Ownership maximizes long-term ROI. |
| Lease | Seasonal, Sporadic, or New Markets | When you have unpredictable demand, seasonal peaks, or are entering a new, untested route. Leasing minimizes risk and capital outlay. |
For assistance navigating the complexities of your cold chain logistics and determining the right strategy for your fleet needs, contact the experts at fredemi.org.
