Advanced

Where is my Container? The Protection of Container Leasing Companies’ Proprietary Rights

Lumetzberger, Lina LU (2010) JURM01 20102
Department of Law
Abstract
Containers are constantly crossing borders, making it almost impossible for a container leasing company to predict which jurisdictions containers on lease may enter – a question, however, of great importance. The protection of the lessor’s proprietary rights is dependent on that countries respect and uphold the protection. Nonetheless does the protection as of today vary widely and it occurs that lessors in the case of, for example, a lessee’s bankruptcy, are forced to bail out their containers from depots, otherwise refusing to give out the containers.
The problem partly depends on differences in national legislation, and partly on the fact that the protection, although formally existing, is not upheld in all parts of the world.... (More)
Containers are constantly crossing borders, making it almost impossible for a container leasing company to predict which jurisdictions containers on lease may enter – a question, however, of great importance. The protection of the lessor’s proprietary rights is dependent on that countries respect and uphold the protection. Nonetheless does the protection as of today vary widely and it occurs that lessors in the case of, for example, a lessee’s bankruptcy, are forced to bail out their containers from depots, otherwise refusing to give out the containers.
The problem partly depends on differences in national legislation, and partly on the fact that the protection, although formally existing, is not upheld in all parts of the world. Without efficient protection financiers may become reluctant to grant credit for movable equipment, in its turn being an obstacle to world trade. Such thoughts lie behind the Cape Town Convention 2001, providing protection for proprietary rights to certain categories of movable equipment by having them registered in an international register. As of today, containers are not comprised under the Convention, although it was discussed during the drafting work. The possibility remains, however, to add further categories of equipment in the future. Such a solution would undeniably strengthen the protection of the proprietary rights and lead to uniform substantive provisions in the area. On the other hand, the capital tied up in container fleets does not lie in the separate objects but rather in the fleet’s quantity, making it less appropriate to adopt an international register for containers in comparison to other types of movable equipment such as aircrafts and ships. To register each and every single container would be costly in comparison to the rather low value of each single container. The container leasing companies, in addition, have developed a number of preventative methods, which as of today seem to be efficient. (Less)
Abstract (Swedish)
Containrar är i ständig rörelse över landsgränser, vilket gör det näst intill omöjligt för en containerleasegivare att förutse i vilka jurisdiktioner uthyrda containrar kommer att befinna sig under leaseperioden – en fråga som dock är av stor betydelse. Leasegivarens äganderättsliga skydd är avhängigt av att de länder i vilka containrarna befinner sig respekterar och upprätthåller det. Inte desto mindre är skyddet idag varierande och det händer att leasegivare vid händelse av till exempel en leasetagares konkurs tvingas lösa ut sina containrar ur depåer som annars vägrar utge utrustningen.
Problemet är dels relaterat till olikheter i nationell lagstiftning, dels till det faktum att skyddet inte ovillkorligen upprätthålls på alla håll i... (More)
Containrar är i ständig rörelse över landsgränser, vilket gör det näst intill omöjligt för en containerleasegivare att förutse i vilka jurisdiktioner uthyrda containrar kommer att befinna sig under leaseperioden – en fråga som dock är av stor betydelse. Leasegivarens äganderättsliga skydd är avhängigt av att de länder i vilka containrarna befinner sig respekterar och upprätthåller det. Inte desto mindre är skyddet idag varierande och det händer att leasegivare vid händelse av till exempel en leasetagares konkurs tvingas lösa ut sina containrar ur depåer som annars vägrar utge utrustningen.
Problemet är dels relaterat till olikheter i nationell lagstiftning, dels till det faktum att skyddet inte ovillkorligen upprätthålls på alla håll i världen. Utan effektivt skydd blir finansiärer ovilliga att finansiera internationellt använd utrustning, vilket i sin tur är ett hinder för världshandeln i stort. Sådana tankar låg bakom Cape Town konventionen från 2001, som erbjuder sakrättsligt skydd till vissa typer av internationellt använd utrustning genom att låta sak- och äganderätter införas i ett internationellt register. Av dags datum är containrar inte omfattade av konventionen även om det diskuterades vid dess utformande. Möjligheten kvarstår dock att framöver lägga ytterligare kategorier av utrustning under konventionen. En sådan lösning hade onekligen stärkt skyddet av äganderätten och lett till enhetliga substantiella bestämmelser på området. Å andra sidan finns kapitalet i containerflottor inte i värdet av de enskilda containrarna utan i flottans kvantitet, vilket gör det mindre lämpligt att införa ett internationell register för containrar jämfört med andra typer av utrustning som används internationellt, så som flygplan och skepp. Att registrera var och varje enskild container hade varit dyrt i förhållande till det relativt ringa värde som en container betingar. Härtill har containerleasegivarna utarbetat ett flertal förebyggande metoder som av dags datum förefaller effektiva. (Less)
Please use this url to cite or link to this publication:
author
Lumetzberger, Lina LU
supervisor
organization
course
JURM01 20102
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Transport Law, Proprietary Law, Transporträtt, Kredit- och säkerhetsrätt, Sakrätt, Contract Law, Container Leasing, Law and Political Science
language
English
id
1732920
date added to LUP
2010-12-03 11:24:16
date last changed
2010-12-14 14:41:23
@misc{1732920,
  abstract     = {Containers are constantly crossing borders, making it almost impossible for a container leasing company to predict which jurisdictions containers on lease may enter – a question, however, of great importance. The protection of the lessor’s proprietary rights is dependent on that countries respect and uphold the protection. Nonetheless does the protection as of today vary widely and it occurs that lessors in the case of, for example, a lessee’s bankruptcy, are forced to bail out their containers from depots, otherwise refusing to give out the containers. 
	The problem partly depends on differences in national legislation, and partly on the fact that the protection, although formally existing, is not upheld in all parts of the world. Without efficient protection financiers may become reluctant to grant credit for movable equipment, in its turn being an obstacle to world trade. Such thoughts lie behind the Cape Town Convention 2001, providing protection for proprietary rights to certain categories of movable equipment by having them registered in an international register. As of today, containers are not comprised under the Convention, although it was discussed during the drafting work. The possibility remains, however, to add further categories of equipment in the future. Such a solution would undeniably strengthen the protection of the proprietary rights and lead to uniform substantive provisions in the area. On the other hand, the capital tied up in container fleets does not lie in the separate objects but rather in the fleet’s quantity, making it less appropriate to adopt an international register for containers in comparison to other types of movable equipment such as aircrafts and ships. To register each and every single container would be costly in comparison to the rather low value of each single container. The container leasing companies, in addition, have developed a number of preventative methods, which as of today seem to be efficient.},
  author       = {Lumetzberger, Lina},
  keyword      = {Transport Law,Proprietary Law,Transporträtt,Kredit- och säkerhetsrätt,Sakrätt,Contract Law,Container Leasing,Law and Political Science},
  language     = {eng},
  note         = {Student Paper},
  title        = {Where is my Container? The Protection of Container Leasing Companies’ Proprietary Rights},
  year         = {2010},
}