Can Investments in Global Trade Reduce Investing Risks? Yes.

Before making an investment in global trade, it is important that you understand what it is. Quite simply, global trade is the total amount of consumer goods being sold across the planet. So, how does an investor invest in this ever-expanding business? Well, the great news is that it is no longer an investment secret and it is actually very simple.

As international trading increases year after year (estimated to be 4.7 percent growth in 2014), the exchange of goods and services continues to flow through established entities like ports, shipping vessels, trains, trucks and various other cargo supplies. In order to participate in this international exchange, you must either own a shipping line, purchase shares in the railway industry, or find a way to purchase small assets that are used throughout the entire trade process; like shipping containers for example.

Many investors are unaware of the fact that they can buy and lease shipping containers for international businesses to employ (and pay for the service), allowing them to earn a steady profit while other people exchange goods. This is how investors can participate and contribute to global trade itself and earn steady returns while the world economy prospers.

According to the U.S. Chamber Of Commerce, over 97 percent of the 302,000 companies that export goods from the United States are small to medium sized businesses. This means that firms that do not have the necessary financial infrastructure to handle their own shipments of cargo, will increasingly seeking help from shipping lines. Although the exact global figures are not known, the fact that 97 percent of American export market utilizes some aspect of infrastructure and/or maritime assets to get their products from one area of the country to outside markets, should be a great indication that the demand for container shipping will remain well into the future. This long-term dependence upon the shipping industry and cargo containers, eliminates many of the risks and uncertainties that are associated with investing today.

The total value of goods exported from the United States totaled more than $2.3 trillion. When you consider that over 80 percent of the world’s purchasing power, 92 percent of economic growth and 95 percent of the world consumers live outside the United states, it is very appealing to consider investing in containers and the global trade of consumer goods.

Investment-Seekers Should Consider Cargo Container Investments

container ship with cargo containersIf you are in search of a good investment which carries very little risk, consider investing in containers. These are the large metal containers that are commonly seen on trains, cargo ships, and trucks. Over the last two decades, shipping container investments have proven that they can help curb the common investment risks associated with investing in stocks and bonds, by operating outside the constant fluctuation of the stock and bond markets.

Shipping containers are widely regarded as an investment in a hard asset. Hard assets are tangible items, unlike company shares and government/corporate bonds. Perhaps the most appealing thing to investors is the fact that container investments are not directly tied to the stock markets, and thus are not subject to volatile price fluctuations. This provides investors with a great way to beat rising inflation as well.

In addition to the great investing benefits listed above, there are three additional reasons investment-seekers should consider investing in shipping containers:

  1. They provide long term returns, have a low dollar entry level and have a strong resale value. They contain a certain amount of nickel and therefore will increase in value over time. Resale values of 30% or more are typical.
  2. Investing in shipping containers provides long-term returns. Shipping containers last 20 years or more. With this long term stability, your investment can remain profitable for decades.
  3. Investing in stocks and bonds can be short term as companies lose value and go out of business. Not so with shipping containers. Your investment is stable and in for the long run.

If you do not have a lot of money to start investing, shipping container investments are ideal. Investors can begin with just one container, at a cost of about $4100 USD. This small investment provides a great beginning and steady returns, without having to invest a lot of money.