Term rental service can provide Customers with their lowest cost per cart shipped.
The service is best suited to Customers who operate their own trucks/trailers and who are therefore able to recover CC equipment from retail stores. The Term Rental service has a number of key components which are summarized below
Long Term Access (LTA)
- Term Rental Customers `buy-in’ to the CC pool by making a capital-payment for a minimum 35% of their expected rack requirements. For example, if a Customer needs 100 racks, at least 35 of them would be paid for via an LTA capital-payment.
- The capital payment means the Customer has access to 35% of their cart requirements without incurring additional rental charges on that quantity of equipment.
- Customers who maintain their credit status with CC can have continuing access to their LTA equipment in subsequent years.
Short Term Rental Charges (STR)
- Term Rental Customers can access additional racks via Short Term Rental (STR). Using the example above wherein a Customer needs a total of 100 racks and has made an LTA capital-payment for 35 racks, the Customer can access an additional 65 racks and pay daily rental for these racks.
- Use of STR normally peaks during the Spring season and then rapidly reduces as Customers return surplus racks to CC in summer months.
- STR is attractive to Customers who want to minimize capital investment in Equipment that may only be used for say 2-3 months per year.
Equipment Recovery Charges/Credits
- Term Rental Customers who are recovering CC equipment from retail stores will usually recover some of their own rented equipment as well as equipment rented by other CC customers. CC’s tracking system identifies when rental responsibility has moved from one Customer to another. When this happens, in addition to a change in each Customer’s rental balance, a recovery credit is awarded to the Customer who picked up the cart, and this is recharged to Customer who’s rented cart was recovered.
- CC’ Equipment Recovery Charges/Credits ensure that each Customer is rewarded for the freight resources they commit to the market, or contributes to the freight costs incurred in recovering their rented racks.