Because container investing requires that investors purchase their own cargo containers, and then add them to an existing fleet to earn long-term profits from established shipping leases, many investment-seekers see shipping container investments as more of a business opportunity; than a traditional investment. This can be attributed to the fact that for most investors, a business opportunity involves the sale or lease of a product, service, equipment, etc., which by proper definition; includes both cargo containers and shipping leases.
Over time, experienced investors have learned that any proposed business venture, whether it be shipping container investing or any other investment endeavor, must provide satisfactory responses to all four of the following detailed questions; found below. With that being said, in order for investing in shipping containers to be considered a viable and profitable opportunity for apprehensive investment-seekers and the majority of the investment community, investors should ask themselves:
- Is there a growing need for shipping containers? Yes. From the expansion of the Panama Canal, to the introduction of mega-container ships and the increase in infrastructure projects in Asia (China and India), the demand for cargo containers is expected to rise steadily; well into 2020.
- Is there a method of fulfilling the growing need for shipping containers Yes. Container leasing and management companies are building large fleets of cargo containers, to supply the current shipping demand. However, more investment is needed, to accommodate steady growth in the industry.
- Is there a means of applying the method, used to fulfill the growing need for shipping containers? Yes. Asset management companies are offering shipping container investments, to help them increase the size of their container fleets, and allow them to supply the rising demand from shipping companies and international manufacturers.
- Is there a method of deriving a benefit, from fulfilling the growing need for shipping containers? Yes. Based on established and negotiated shipping leases with container management companies, investors can earn a rate of return on their investment, that often exceeds 12 per cent.
It is important to note that the more unique the combination of the above ingredients are, the more unique the business opportunity will be for investors. As well, the more control an investor has over the key elements of their investment opportunity, the better position they will be in to take advantage of other investing options; that might emerge in the future. The constant and rising need for shipping containers across the globe, requires ongoing investment from private investors, to meet the increasing demands of the shipping industry; and international manufacturers. Working in partnership with container leasing and management firms, investors can actively participate in building the global economy, as well as; profit from established shipping leases.