Lease types
Four ways to hand over a container
NOBLE describes four lease types. They differ in term, redelivery and ownership at the end.
| Type | Term | What happens at the end | Used for |
|---|---|---|---|
| Master lease agreement (MLA) | short | redelivery at pre-defined locations | peak season, unforeseen project needs |
| Long-term lease (LTL) | regularly 5–10 years | redelivery at locations agreed in advance | growing a fleet without a bank facility |
| Lease purchase (LP) | typically 1–8 years | the lessee buys the container | ownership by instalments |
| Sale & leaseback (SLB) | – | the container stays in the seller's fleet | releasing capital, operations unchanged |
According to NOBLE, all lease types require a standard credit check.
Why carriers lease
NOBLE calls leasing an alternative source of capital in a high-growth, capital-intensive business. Add operational flexibility, lower operating costs and flexibility in the fleet mix.
What that means: the lessor carries the capital, the lessee the business. For investors the lessee's creditworthiness is therefore as important as the container itself.