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Commitments and Contingencies
9 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 7. Commitments and Contingencies

During the fourth quarter of 2013, we exercised our purchase option on approximately 2,000 containers that are currently leased. The purchases totaling approximately $7.8 million will occur as the leases expire throughout 2014. As of September 30, 2014, we have purchased approximately 1,925 containers with the remaining 75 containers to be purchased in the fourth quarter for approximately $0.3 million.

In March 2014, we entered into an equipment purchase contract for the acquisition of 300 Freightliner tractors. The total purchase price of these tractors is approximately $39.3 million. As of October 16, 2014, we have received approximately 216 tractors. We expect to take delivery of the remaining units by the end of the year.

 

In April 2014, we entered into equipment purchase contracts for the acquisition of up to 4,000 containers. We have decided to acquire 3,500 new 53’ containers at a total cost of $38.3 million. As of October 16, 2014, we have received approximately 2,694 containers. We expect to take delivery of the remaining units by the end of the year.

We intend to finance the purchase of the remaining new containers and tractors with secured fixed rate debt.