Over the course of the last couple of years, an increasing number of investors have approached me to ask, “Why should I invest in shipping containers?” I have learned that the easiest way to answer, is to reflect on events from the past.
When the Global Financial Crisis emerged in late 2008-early 2009, much of the international investment community was quick to realize that the traditional investments that made up the foundation of their investing portfolios, had suffered unbelievable losses that (if possible) would take years to recover. For a majority of investors these events were devastating to their finances and their confidence. At that moment, there began a steady movement of investment money away from the established methods of investing and into the alternatives that had demonstrated resilience, and even profitability, through the tough economic times.
Once the decision was made to move away from traditional investments, the challenge for many adamant investors was locating these carefully guarded investing secrets and then gaining the opportunity to profit from them. Fortunately for private investors, when the GFC struck many of the world’s investment firms and affluent investors were forced to liquidate their lucrative alternative investment holdings, to cover losses that had been incurred in other areas of their portfolio. One such alternative investment that quickly caught the eye of the investment community was investing in shipping containers.
Adding to the fact that investment firms and ultra-wealthy investors were selling off their container investments, the Global Financial Crisis took its toll on the shipping industry and international shipping companies were forced to down-size and reduce overhead. As you can imagine, managing and maintaining an enormous fleet of cargo containers is a monumental task, that carries with it an unbelievable price tag. As such, shipping lines were eager to shift that responsibility and financial obligation elsewhere. It was the result of these past events that allowed private investors the opportunity to scoop-up the fabled shipping container investments.
In order to appreciate the great investment opportunity that has presented itself, investors must first understand what makes shipping containers so valuable, not only to investors but to the global economy as well. This begins with an understanding that 90 percent of the world’s consumer goods travel by cargo container to shipping ports around the world. These containers are relied upon to feed the international consumer demand and build stronger economies across the globe. It is the shipping container’s constant contribution to economic recovery and/or continued growth that will ensure the steady demand for containers today and in the future.
It is clear to see why this traditional investment alternative has become so popular with the world’s affluent investors, and also why it has remained a secret investment for so many years. The protection that a shipping container investment offers against the perils of interest rates and inflation, combined with the steady demand generated from the growing world economy and ever-expanding global trade, are very good reasons to include shipping containers as a permanent part of any investment portfolio. With that being said, I hope that this adequately addresses the question “why should I invest in shipping containers?” and increases the confidence in those still wonder if it is a scam or an incredibly profitable investment opportunity.