While the inflexibility of termination and the length of the commitment are common disadvantages for all equipment leasing, in shipping they impose more constraints on the lessee because some shipowners wish to retain the flexibility of selling ships for asset play in suitable situations.Leases are, therefore, more appropriate for owners who, for purposes of securing cash flow, wish to operate their ships for a relatively lengthy duration. They are usually those who operate ships on regular, established services. There are also those who have secured long-term charters, such as operators of containerships, cruiseships, ferries and gas carriers. On the contrary,
dry bulk carriers and tankers are subject to a more volatile capital price and freight rate.Thus, in all likelihood, owners would wish to retain the option to sell at a suitable time and would not be keen on entering into lease arrangements.