The Grey Box Concept proposes that multiple container carriers transfer equipment assets to a jointly owned offshore holding corporation. This equipment would then be managed by a separate subsidiary to optimize utilization and reduce costs for shareholders. By maximizing equipment usage through shared pooled facilities, the Grey Box aims to lower carriers' overall fleet levels, repositioning movements, storage charges, and maintenance and repair costs. The main beneficiaries would be consortia, alliances, and large independent operators seeking to reorganize asset management.

1. The Grey Box Concept

2. BackgroundAlthough the economic recession which has gripped the world is showing signs of easing, its disastrous financial impact on the global liner shipping industry will continue to be felt for years to come. Not all companies will survive and even those carriers which remain must still take drastic action to reduce their operating costs.The ‘Grey Box’ concept has been developed towards achieving this cost saving objective.

3. ConceptMultiple container carriers transfer equipment assets to a jointly owned off-shore holding corporation. The units are thereafter, managed by a separate ‘leasing’ subsidiary of the corporation for the mutual benefit of the shareholders.The overall objective of the ‘Grey Box is to optimise equipment utilisation and to reduce shareholder expenses.

4. Cost SavingsBy maximising equipment optimisation through the use of shared pooled facilities, cost savings can be effected in: overall fleet levels reduced repositioning movements lower storage charges savings in M & R costs lower insurance premiums staffing levels

5. Additional AdvantagesFurther indirect advantages of a ‘Grey Box’ pool include: potential for optimising ‘carrier haulage’ logistics improved input for pricing policies and revenue management systems healthier ‘balance sheet’ profiles

6. Main BeneficiariesThe ‘Grey Box’ concept will be of most benefit to: Consortia and Alliance Groups Short and Near Sea Partnerships and for Large Independent Operators seeking to reorganise their Asset Management into ‘Profit Centres’

7. Present Consortia Alliance WorkingsShared facilities Schedules

8. Ships

9. Ports & TerminalsSeparate facilities Equipment

10. CY & MR

11. Hinterland logistics

12. IT SystemsRegion XRegion YRegion ZLine A ---------Line B ---------Line C ---------

13. Future Consortia/Alliance WorkingsSeparate facilities Marketing

14. Sales

15. Commercial

16. AccountingShared facilities Schedules

17. Ships

18. Ports & Terminals