Why Choose Shipping Containers As Alternative Form Of Investment?

Shipping containers have been in use for many decades and it was in the recent years when people realized its potential as a reliable and risk-free investment option. It falls into an investment portfolio that generates monthly rental income in a marketplace that has an ever-growing “demand” for the commodity. Investors looking to build low-risk, low-cost entry, alternative investment portfolio will find container investment as a lucrative option.

Reliability of Shipping Industry

The shipping industry is one of the most reliable sectors that has remained unaffected by the fluctuations in the global economy. The constant global demand for commodities of all types is the factor driving the industry, which makes it almost impervious to how the share markets work. Waterways are the means to transport almost 90% of goods. Thus, investing in containers is a profitable and safe way to earn steady returns. Even more important is that the investment process is quite simple.

The Business Model

The Asia-Pacific region is the busiest shipping region in the world. Most of the market goods today originated in China and the Far East, making this the ideal place to choose for shipping container investments. The business model involves buying one or more containers, and a leading company manages them. Well-established leading firms will help in the purchase and manage the investment to help reap regular returns in the form of monthly rentals.

This is an investor-owned container business where it is possible to sign two or more years of agreement. It is ideal to choose a leasing company that manages larger number of containers and has a larger client base. Besides, similar to other industries, customer support and communication are also important factors.

Sustainability

There are more than 34.5 million shipping containers in the world. Despite this large number, the supply is nowhere close to demand. It is worth noting that more than 22% of market goods move via other mediums because of the shortage of containers. Chemical, beverage and food companies are the leading users, but almost all other industries need these units for transporting their goods to and from different parts of the world. China, Far-East, Europe and the Americas are the largest users.

Besides, containers are more environment friendly compared to the drums and other alternative mediums. Converting just 1% of that other cargo from drums to containers is likely to create a demand for thousands of new containers. All these reasons clearly show the huge potential that lies in shipping container investments.

The shipping industry and this investment-model are always in a curve going upwards. As the price of containers increase with time, so does the income generated from them. Besides, shipping container investments also yield strong returns at the end of the container life-cycle because of nickel’s presence as one of the metals in the alloy.



Source by Richard Robert Lee



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