Containers are built in accordance with standard dimensions and weight specifications established by the International Standards Organization. The industry-standard measurement unit is the 20’ equivalent unit, or TEU, which compares the size of a container to a standard container 20’ in length.

A dry van container is constructed of steel sides, roof and end panel with a set of doors on the other end, a wooden floor and a steel undercarriage. Dry van containers are the least expensive and most commonly used type of container. According to Containerisation International, World Container Census 2006, dry van containers comprised approximately 89.2% of the worldwide container fleet, as measured in TEUs, as of mid-2005. They are used to carry general cargo, such as manufactured component parts, consumer staples, electronics and apparel.

Container shipping lines own and lease containers for their use. Containerisation International, Market Analysis: Container Leasing Market 2006, estimates that as of mid-2006 transportation companies, including container shipping lines and freight forwarders, owned approximately 57.3% of the total worldwide container fleet and container leasing companies owned approximately 42.7% of the total worldwide container fleet.

Over the last 25 years, containerized trade has grown at a rate greater than that of worldwide economic growth. According to The Drewry Annual Container Market Review and Forecast 2006/2007, worldwide containerized cargo volume grew each year from 1980 through 2005, attaining a compounded annual growth rate of 9.8% during that period. Drewry estimates that 2006 container cargo volume grew 10.3% over the prior year.

The vast majority of the Company’s container leases are structured as long-term and short-term leases, although it also provides lessees with finance leases.

The Company’s long-term leases specify the number of containers to be leased, the pick-up and drop-off locations, the applicable per diem rate and the contractual term. The Company typically enters into long-term leases for a fixed term ranging from three to eight years, with five-year term leases being most common.

Short-term leases include both master interchange leases and customized short-term leases. Master interchange leases provide a master framework pursuant to which lessees can lease containers on an as-needed basis, and thus command a higher per diem rate than long-term leases and more flexible terms.

Finance leases provide the Company’s lessees with an alternative method to finance their container acquisitions. Finance leases are long-term in nature, typically ranging from three to five years, and require relatively little customer service attention.

Equipment rental expense decreased $4.9 million, or 80.5%, to $1.2 million for the nine months ended September 30, 2006 from $6.1 million for the nine months ended September 30, 2005.

Storage, handling and other expenses decreased $935,000, or 29.5%, to $2.2 million for the nine months ended September 30, 2006 from $3.2 million for the nine months ended September 30, 2005.

Marketing, general and administrative expenses increased $765,000, or 8.8%, to $9.5 million for the nine months ended September 30, 2006 compared to $8.7 million for the nine months ended September 30, 2005.

Net interest expense decreased $1.6 million, or 27.8%, to $4.1 million for the nine months ended September 30, 2006 from $5.7 million for the nine months ended September 30, 2005.