MCC Transport - Your Intra-Asia Partner

20 April 2010

Introduction of Out of Service (OOS) Charge

Damage to containers is a problem that affects all of us. When a container is returned to us damaged, it has to be repaired – which entails both direct and indirect repair costs. But it can also mean delays and other inconveniences for customers like you.The good news is that most container damage can be prevented through extra care and common-sense precautionary measures. To promote damage prevention and ensure that the cost of container damages is covered by the responsible party, we are changing the way we deal with damage coverage.

Out of Service (OOS) charge

As of 1 May 2010, MCC Transport will introduce a new Out of Service (OOS) charge. This fixed charge is intended to cover all costs incurred when a container is damaged – including transport, lifting, replacement and administration costs, which MCC Transport has previously had to cover ourselves.

Details of the OOS charge are as follows:

In practice, this means that for damage cases where the repair itself costs up to USD 50, the party liable for the damage will pay USD 200 per dry container and USD 400 per reefer container (USD 50 + USD 150 or USD 350). For repairs exceeding USD 50, the total charge will be adjusted accordingly.

The fairest way

We believe the OOS charge is the fairest way to cover the costs of damaged containers, as it ensures that only the parties responsible for damage have to pay for it. And since most damage to containers is preventable, customers who take extra precautions and make sure to return their containers in good condition should not be affected by the charge.

If we did not introduce the OOS charge, we would have to charge for the extra costs up front, through a rate increase or general insurance coverage that all our customers would have to shoulder.

We think it’s fairer that damages are paid for by those who cause them.

We hope this new policy results in lower costs and improved service for all our customers. If you have any questions concerning the charge or container damage in general, please feel free to contact your local MCC Transport representative.

We thank you for your ongoing and valuable support. MCC Transport will continue to deliver service excellence, connecting you with your customers across the region.