Florens' Mission Statement: Committed to leading the container leasing industry through continuous investment in our business and by surpassing the expectations of our customers, investors, and employees.
Since 1987, when Florens delivered its first container under long-term lease, we have steadily increased our commitment to the global shipping industry. Early on, we focused on the supply of dry and refrigerated containers on long-term leases for Asian-based accounts, particularly Cosco. In 1992, we invested in containers as part of third party management programs. By 1995, our customer base for long-term units expanded to carriers outside of Asia.
In 1996, our organization expanded globally by opening offices and depots worldwide. At the same time, master and short-term leases were added to the portfolio. Open-tops and flat-racks were added to the expanding dry-cargo and refrigerated container fleets. Not only are we positioned to deal with the leasing sector of our industry, but we also offer a full array of used containers for sale around the world.
Florens' on-going commitment to our global customer base is best demonstrated by our investment strategy:
Containers: We are one of the world’s largest container lessors that captures about one-fifth of the global market. We operate a fleet of over 3.7 million TEU committed and available to international shipping and logistics communities, providing a wide range of products that include dry, refrigerated and other specialized types such as open-top, flatrack and tank.
Organization: Most of the international shipping lines are within our customer profile, which means we service customers both big and small from all over the Americas, Europe and Asia. To better serve the international shipping community, Florens Hong Kong maintains its headquarters and performed corporate functions. Florens also enjoys a marketing presence in ten countries with dedicated offices in thirteen strategic locations. We plan on expanding our marketing presence throughout Asia, Africa and the Middle East. Each of our marketing directors has more than 10 years of industry experience. This, coupled with our senior management's depth of knowledge, gives us the expertise to proactively adapt our business to meet industry demands.
From its inception, Florens' objective was to provide quality customer
With this in mind,
several million dollars were invested in the development of state of the art
systems. At the end of 1999, the first phase of the operational system was
launched. As a
result, our equipment tracking and billing systems were greatly enhanced. We
continue to invest in systems development as a means to provide expanded and
solutions to our customer's requirements. Our software platform is pure
This translates to:
Florens' applications are delivered over a standard Internet browser for comprehensive business management - making Florens the only container leasing company to provide real-time business solutions in a pure-internet environment to customers, suppliers and employees.
Florens offers outside investors an opportunity to invest in container portfolios as part of its Managed Container Program (“MCP”). In such an arrangement, Florens works with the potential investor to select a group of containers matching the age and return criteria set by the investor. Once the pool of containers is established, Florens and the investor will determine a price for the equipment and, ultimately, a purchase agreement will be finalized. Concurrently, both parties will set mutually agreeable management fees to be paid to Florens for its services in leasing, monitoring, maintaining and, eventually, selling the equipment. The terms and conditions are spelled out in a management agreement signed by both parties. Florens continues to manage the equipment, as Lessor, from the time of acquisition until such time as the equipment is disposed. Cash is distributed to the investors from the ongoing collection of lease receivables. The management fees earned by Florens are deducted from the collections prior to investor distribution. The benefit of MCP to the investor is the steady cash flow generated by leased containers enjoying high utilization in the international shipping market. In working with Florens the investor has a trusted, experienced partner well equipped to address the vagaries of the market and properly manage the risk inherent in the global shipping environment.
One of the many tools available to Florens to grow its fleet and expand market share is the Sale and Leaseback (“SLB”) program. In a typical SLB transaction, Florens will purchase a selection of containers from one of the shipping companies in its global customer base. Generally, the containers will be older units with a remaining life span from two to seven years. While it is feasible that new containers could be offered in an SLB, such a transaction is unusual. At the same time as the purchase, Florens and the shipping company agree on terms and conditions for Florens to “lease back” the containers to the previous owner. Those conditions are defined in a standard Florens lease agreement signed by both parties. The critical elements of the agreement are the tenure, rental rates and the disposition of the equipment at the end of the lease agreement. The lease can end in one of two ways -- the lessee “buys back” the containers at a predetermined price or it returns the containers to Florens. In the latter case, Florens is free to lease the equipment to other customers or to sell them in the secondary market.
The COA was established in November 2004 as an international organisation representing the common interests of all owners of freight containers. The principle aims of the COA are to provide global expertise, to promote common standards and to facilitate international lobbying.
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