The concept of virtual container yard (VCY) is based on the container exchange between carriers on a global platform. Each carrier has the full control of their containers with respect to release or hold for their own use. The fundamental prerequisite in a container exchange is that there should be a carrier who is in shortage and another carrier in excess. In chapter eight, as per the case study in Sri Lanka, it is evidenced that the prerequisite is met. Therefore, it is worthwhile investigating this concept further.

Lines may exchange containers provided it enhances the value of the supply chain to all participants. The basic requirement that demands this action is that one carrier should be experiencing a deficit of containers (either the particular size or the type in demand) while another carrier has a surplus on the identical size and the type of containers at the same time horizon and in the same location. The offeror however primarily needs to make sure that they have ongoing services (and agents to undertake handling) at the intended destination. Secondly, there should be a demand for empty containers by the offeror at the time that the respective containers are scheduled to reach. This demand should be either greater or equal to the number of containers they offer to the other carrier (offeree). Accordingly, the prime need for VCY is derived from the imbalance of container stocks in various ports across the globe.

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