More and more investors are going beyond financial products and bricks and mortar.
A good example of this is shipping containers. A product that, hand in hand with the growth of international trade, has become a very attractive option for investors looking for profitable opportunities.
Want to find out why investing in shipping containers can be a smart move? Read on!
Why invest in shipping containers
The reasons why investing in shipping containers is attractive to investors are numerous and compelling, some of the most important being:
- Market stability and growth: Global trade continues to expand, ensuring a steady demand for freight transport. Shipping containers are an essential part of this process and, most importantly, the market is expected to continue to grow in the coming years.
- Passive income potential: Shipping containers can generate passive income through leasing. By leasing your containers to shipping companies, you can earn a steady stream of revenue without the need to directly manage logistics.
👉 You might be interested in: Should you rent or buy shipping containers?
- Inflation protection: Shipping containers are linked to global trade and economic fluctuations, making them a relatively safe investment to protect your capital against inflation.
What you need to know before investing in shipping containers
Before you dive into the world of shipping container investment, it is essential that you consider certain key aspects.
- Research and analysis: Conduct thorough research on the shipping container market and key players. Understanding market trends, demand and competition will help you make informed decisions. For this, we recommend reading our article on “The best price index in the container market”.
- Diversification: As with any form of investment, it is advisable to diversify your portfolio. Don’t put all your resources into one type of container or provider. Diversifying your investments will reduce risk and increase return opportunities.
- Maintenance and insurance: Shipping containers require proper maintenance to ensure their long-term durability and value. In addition, make sure you have adequate insurance to protect your investment against damage or loss.
What type of containers are best to invest in?
When it comes to investing in shipping containers, it is crucial to identify the types of containers that offer the best return opportunities.
Here are some of the most promising containers to consider in your investment strategy:
Standard 20-foot and 40-foot containers
These are the most common and widely used container types in the shipping industry. Thanks to their constant demand and versatility, investing in these containers can provide you with a good long-term return.
Refrigerated containers
Also known as reefer containers, these are an interesting investment option. They have integrated refrigeration systems, making them an ideal solution for transporting perishable goods such as food and pharmaceuticals.
The growing demand for refrigerated goods offers good investment prospects for this type of container.
Specialised containers
There are various types of specialised containers that cater to specific industry needs. Examples include bulk liquid containers, air freight containers, vehicle transport containers, among others. These can provide interesting investment opportunities if a steady demand is identified in a particular sector.
State-of-the-art containers
These containers are equipped with innovative features such as tracking systems, temperature sensors and humidity control. Investing in state-of-the-art containers can be a promising bet, as they offer competitive advantages and increased supply chain efficiency.
What are the risks of investing in containers?
While investing in or buying shipping containers can be very lucrative, it also carries certain risks that are important to be aware of:
- Fluctuations in demand: The market for shipping containers is influenced by the demand for freight transport. Changes in the global economy or unforeseen events can affect demand and therefore your return on investment.
- Depreciation in value: As shipping containers age, their value decreases. Technological obsolescence, physical wear and tear, and evolving industry standards can reduce the value of your assets over time.
- Risk of lack of tenants: Depending on market conditions, you may find it difficult to find tenants for your containers. This could affect your expected income and delay the return on your investment.
How to invest safely
Despite the risks, it is possible to invest safely in shipping containers and maximise your chances of success.
To do this, however, it is essential to devise a strategy that allows you to invest safely:
- Work with reputable suppliers: Research and select shipping container suppliers that have a solid reputation in the industry. Make sure they offer maintenance, insurance and professional advice.
- Diversify your portfolio: Diversifying your investments in different types of containers and suppliers can help mitigate risks. Don’t put all your eggs in one basket.
- Stay on top of your investment: Keep constant track of your shipping container investments. Monitor performance, conduct periodic inspections and stay informed about changes in the market to make informed decisions.
Sea container investment opportunities
If you’re interested in taking advantage of shipping container investment opportunities, you’ll want to know what shipping container investors are saying about how to invest in shipping containers and maximise your chances of success:
- Thorough research: Before investing, it is essential to conduct thorough research on the shipping container market. Learn about the key players, market trends and current demand. Likewise, keep up to date with the latest news and events that may affect the industry. For this, it is always advisable to rely on a trusted platform for trading or buying and selling sea containers, fully transparent with market updates, such as BOXXPORT.
- Set a budget: Define a clear budget for your shipping container investments. Determine how much you are willing to invest and set realistic return on investment goals. Remember that investment in shipping containers can be long-term, so it is important to take a long-term view.
- Understand the different investment approaches: There are several ways to invest in shipping containers. Some options include buying and selling containers, repositioning them to take advantage of new opportunities, or leasing them to generate passive income. Evaluate each approach and choose the one that best suits your investment objectives and strategy.
Buying and selling containers
One of the most common ways of investing in shipping containers is through the purchase and sale of these assets. If this is the strategy you are most interested in:
- Identify reliable suppliers: Seek out reliable shipping container suppliers and establish strong relationships with them. Make sure the containers you purchase are of high quality and meet industry standards.
- Study the second-hand market: In addition to new containers, you can also consider buying second-hand containers. These containers often have lower prices, which can give you a competitive advantage. However, be sure to carry out detailed inspections to ensure that they are in good condition before purchasing them.
👉 Read: New vs Used Shipping Containers: Solution to the Dilemma
- Follow market trends: Stay on top of market trends and demand for shipping containers. This will help you identify buying and selling opportunities at strategic times. For example, if there is growing demand in certain markets or regions, you might consider investing in containers that meet those specific needs.
Buy, reposition and sell containers
Another interesting strategy for investing in shipping containers is to buy, reposition and sell containers.
This approach involves buying existing containers, making improvements or modifications to them, and then selling them at a higher price. Let’s look at some key points to consider:
- Assess repositioning opportunities: Before acquiring containers for repositioning, research market needs and trends. Identify specific niches or segments that could benefit from modified or adapted containers. For example, containers designed for refrigerated storage or for specialised uses such as events or mobile buildings.
- Plan for appropriate upgrades: Once you have acquired the containers, determine the upgrades needed to increase their value. This may include the installation of refrigeration systems, security upgrades, interior fit-outs or customisations according to customer requirements. Be sure to consider the cost of the improvements and the potential return on investment.
- Establish relationships with potential buyers: To maximise your sales opportunities, establish relationships with potential buyers before finalising container repositioning. Contact companies or individuals who may be interested in acquiring modified containers and present your value propositions. This will help speed up the sales process once the containers are ready.
Leasing containers for one-way moves
A cost-effective and low-risk alternative to investing in shipping containers is through one-way container leasing. This approach involves leasing your containers to companies or individuals who need to ship goods to a specific destination. Before doing so:
- Establish clear lease agreements: When leasing your containers, make sure you establish clear and detailed lease agreements. Define the terms, the duration of the lease, the rates and the responsibilities of each party. This will help you protect your interests and avoid potential conflicts in the future.
- Identify high-demand markets and routes: Research shipping markets and routes with a high demand for containers in a specific direction. For example, there may be routes with a large number of export cargoes but fewer containers available for return shipments. Identify these opportunities and focus your leasing efforts on those markets.
- Maintain proper maintenance: Make sure to keep your containers in good condition during the lease. Perform regular inspections, cleaning, and maintenance services when necessary. This will not only help prolong the life of your containers, but also maintain the satisfaction of your leasing customers.
Why invest in shipping containers with Boxxport?
If you are looking for a reliable platform to invest in shipping containers, Boxxport is the ideal choice for several important reasons:
Firstly, because of our experience and knowledge, given that our entire team is made up of experts in logistics and international trade, which allows us to provide you with a solid and well-founded approach to your investments.
In addition, our extensive network of suppliers and buyers allows us to offer you a wide range of investment opportunities.
At Boxxport, we value transparency and security in all our transactions, so if you decide to put your trust in our hands, we will provide you with clear and detailed information about the containers available, their history and current status. In addition, we work with contracts and legal agreements to ensure the security of your investments.
Last but not least, we provide personalised advice to help you make informed decisions. Our team will be happy to guide you through the investment process and answer all your questions.
FAQs
Is it profitable to own a sea container?
The profitability of owning a sea container depends on several factors, such as market demand, maintenance costs and time of use. In general, sea containers can be a profitable investment in the long term, especially if they are used for the transport of goods or leased to third parties.
When does the investment pay for itself?
The time it takes for the investment in a sea container to pay for itself can vary depending on a number of factors, such as the initial cost of the container, maintenance costs, the leasing price and market demand. In general, it is estimated that the investment in a sea container can pay for itself between 3 and 7 years, depending on the specific conditions.
How much does a sea container cost?
The cost of a sea container can vary according to different factors, such as size, condition and geographical location. The average cost of used shipping containers ranges from $2,000 to $6,000. However, it is important to note that prices can fluctuate depending on market supply and demand.
Remember that every investment comes with its own considerations and risks. So, before you invest, conduct a thorough analysis, consult with experts before making any decisions, and don’t invest more than you are willing to lose.
