Glossary > #EOR

EOR – Estimate of Repair

What is Estimate of Repair (EOR) for a Shipping Container?

Estimate of Repair (EOR) is a key, formal and detailed document in container logistics. It serves to precisely identify, assess and describe damage to a shipping container and determine the costs required to bring it to a safe, Cargo Worthy condition. EOR is created by specialized repair depots based on thorough physical inspection of the container and clearly specifies:

type and extent of damage,
precise location on the container (according to international CEDEX/IICL standards),
standardized repair method,
estimate of labor hours and material costs.

EOR is not merely a price quote, but a fundamental basis for decision-making regarding repair, financial responsibility and operational capability of the container. Without an approved EOR, no repairs can be performed. The document is essential for fleet management and maintenance, cost allocation and maintaining the smooth flow of global supply chains.

Significance and Role of EOR in Container Logistics

Financial Control and Cost Management

EOR enables the container owner (shipping line, leasing company) to precisely control and approve all repair costs before they are incurred. Each item is transparently itemized, which:

protects against unauthorized or overpriced repairs,
allows selection of the most efficient and cost-effective approved repair method,
ensures that the repair is economically justified (for example, if repair would exceed 60-70% of the container’s value, it is usually not performed and the container is decommissioned – so-called “Constructive Total Loss”).

Operational Efficiency and Asset Availability

Delayed repair means lost revenue and disrupted supply chains. EOR significantly accelerates repair decision-making and approval. This enables faster return of the container to service and minimizes its downtime at the depot.

Responsibility and Dispute Resolution

Containers travel through many hands during their journey (terminals, carriers, depots, freight forwarders). EOR serves as objective, standardized evidence of the container’s condition when received at the depot and is indispensable in resolving claims and determining liability for damage.

Quality and Safety

EOR defines precise repair procedures in accordance with strict standards (IICL, ISO, and often shipping line’s own standards). Each repair must therefore guarantee structural integrity, tightness and safety of the container for further operation and handling.

Strategic Decision-Making and Data Analysis

Aggregated data from thousands of EORs enables:

tracking recurring types of damage,
identifying risk areas (ports, routes, handling locations),
measuring reliability of manufacturing batches or suppliers,
optimizing spare parts inventory and maintenance planning.

Estimate of Repair (EOR) Process Step by Step

Phase	Description	Technical Specifications and Tools
Gate-in	Container arrives at depot, initial visual inspection, segregation of damaged units.	Depot system record, photographs
Detailed Survey	Detailed inspection of all container parts (walls, floor, roof, doors, chassis).	Digital photos, measurements, app/tablet entry
Damage Coding	Each damage is coded according to global CEDEX standards.	E.g. L2/P/D/WR – left panel, dent, welding
EOR Creation	All items are entered into electronic form, labor and material are calculated.	EDI (DESTIM), cloud synchronization
Submission and Approval	EOR with photo documentation is submitted to owner for review.	Automatic transfer, notification
Repair	After approval, repair is performed exactly according to EOR items.	Performance tracking in system
Output Inspection (gate-out)	Final inspection, issuance of cargo-worthiness certificate.	Certification, system update

Key Components of EOR Document

Header

Container number (e.g. HZKU1234567)
Estimate number
Dates (survey date, creation, approval)
Depot identification

Participants

Owner (shipping line/leasing company)
User (if different)
Inspector (surveyor ID)

Container Parameters

Type and size (20GP, 40HC, 45G1…)
Manufacturer, year of manufacture
Condition before repair

Repair Items (damage & repair line items)

Each item contains:

Field	Description	Example
Location	Damage location code (e.g. RR – right rear corner)	RR
Component	Specific part (e.g. CMB – partition)	CMB
Damage Type	E.g. BT – dent, HL – hole	BT
Repair Method	ST – straightening, WR – welding, RP – replacement	WR
Dimensions	Length in cm/m, if applicable area	30 cm
Labor	Estimated hours, standardized times	1.5 h
Material	Cost of parts and consumables	15 €
Total Price	Sum of labor and material	105 €

Summary

Subtotals for labor, material
Tax
Total budget
Currency

Overview of Repaired Parts and Charged Items

Based on actual tariffs, a typical EOR includes:

Washing, cleaning, painting: machine washing, steam cleaning, coatings including food-grade standard.
Replacement/repair of markings: safety labels, ISO codes, serial numbers, national markings.
Panel parts: straightening, welding, replacement of wall, roof, door panels.
Corners and corner posts: straightening, section replacement, complete corner casting replacement.
Floor: replacement or repair of plywood (often 28–30 mm, water-resistant), mold treatment.
Partitions, reinforcements, forklift pockets: straightening, replacement, welding.
Door components: seals, locks, hinges, door frames.

Each item has a precisely defined price based on location, type and extent of damage (see depot tariff lists).

Damage Coding: CEDEX and IICL

CEDEX (Container Equipment Damage Exchange)

Globally recognized system for coding container damage.
Code structure: [position]/[component]/[damage type]/[repair] (e.g. L2/P/D/WR).
Enables automated processing and comparison of EORs across depots, shipping lines and software.

IICL (Institute of International Container Lessors)

Sets limits for when a container is still cargo-worthy and when repair is necessary.
Defines when, for example, a dent, crack or corrosion is already beyond the permitted limit.

Types of EOR Item Classification According to IICL

Items are typically classified as follows:

Mandatory Repair: Repair is necessary to maintain safety/usability.
Owner’s Account: Repair paid by owner (wear and tear, age).
Lessee’s Account: User is responsible (damage during lease).
Upgrade/Modification: Special requirements (food-grade, design changes).

EOR Digitalization: Modern Technology in Practice

Mobile Applications and Cloud (e.g. ARL Container Repair Estimator)

Inspectors take photographs, record damage and generate EOR directly on tablets/mobile devices.
Photo documentation is automatically saved and synchronized to the cloud, where it is available to all stakeholders (owner, user, depot manager).
Ability to immediately mark damage, add verbal comments or automatic text recognition (OCR).
Exports to Excel, PDF, XML, automatic integration into shipping line systems, connection to EDI (DESTIM).

Artificial Intelligence and Computer Vision

AI systems (e.g. using neural networks) can automatically recognize damage type, location and extent from a photo, suggest EOR item code and estimate costs.
Significantly accelerates the process, reduces subjective errors and increases consistency of assessments.

Business Intelligence and Fleet Analysis

Automated dashboards visualize:
- frequency and types of damage,
- identify weak points in handling or on routes,
- optimize supply of repair materials.

Economic Decision: Repair, Decommission, or Relocate?

Repair: If repair costs are lower than, for example, 60–70% of residual value, repair is approved.
Decommissioning (Constructive Total Loss): If repair is uneconomical, container is sold for parts or scrap.
Relocation: If container is damaged in a location with expensive repairs, it may be sold “as is”, or relocated to an area with cheaper service.

Trends and Recommendations in EOR Management

Standardization: Always use CEDEX/IICL coding for comparability and transparency.
Digitalization: Invest in mobile applications and cloud solutions, accelerate and improve inspections.
Photo Documentation: Always document each item with quality photos – essential for dispute resolution.
Data Analysis: Regularly analyze aggregated EOR and identify weak points in processes or container handling.
Staff Training: Regularly train inspectors in new standards and technologies.

Beroun, Czech Republic