Why You Should Invest in Shipping Containers ASAP
Shipping containers may not be as prominent in the investment world as stocks, bonds or precious metals, but they can be surprisingly lucrative for the investors who choose to get into them. If you’re looking for a new investment to broaden your portfolio, shipping containers could be a great option for you. Here are some of the top reasons you should invest in shipping containers as soon as possible.
Returns from Shipping Containers Outpace the Stock Market
Though it varies from year to year, the stock market tends to perform at an average return rate of about 7 percent annually. Though this isn’t a bad return by any means, shipping containers routinely produce returns of 10–12 percent on long-term leases. When shipping companies lease your containers on short-term contracts, the annualized returns can even approach 20 percent. Given these rates of return, shipping containers are good investments for diversifying your portfolio to achieve higher yields.
The Shipping Container Market is Very Favorable for Investors at the Moment
These high returns on shipping container investment are reflective of the fact that the demand for containers actually outpaces the supply of them. Thanks to the modern globalized economy, international shipping volumes continue to rise every year and drive the demand for shipping containers. If you own container investments, this situation can be very favorable, as transportation companies have strong incentives to offer you high returns to lease your shipping containers to them. If you’ve ever considered getting into container investing, now is likely the best time to do it.
Shipping Container Investment Can Be Scaled Over Time
One of the best reasons to get started with shipping container investments as soon as possible is the fact that this form of investment can easily be scaled up over time. Though you may start out with only a few shipping containers, you can reinvest your returns, buy more containers and gradually increase the amount of money you’ll make from leases. With this kind of scaling investment strategy, starting sooner will by extension allow you to reach higher levels of profitability sooner.
These are just a few of the many reasons you should consider investing in shipping containers as soon as possible. With a favorable market, great potential returns and the ability to scale up over time, investing in shipping containers can make an excellent addition to your investment portfolio.
Davenport Laroche, headquartered in Hong Kong, is a major player in the container rental and hard assets investment industry.