Everyone is looking for secured investments. Shipping container investments have emerged as a field of low-risk investments and investors are pooling their money into this investment. There are many reasons why companies are growing and gaining more and more investors.
Shipping containers are the large sturdy metal boxes piled on seaports, trains and sometimes even trucks. That is used to transfer goods. They transfer a lot of things, from perishable goods to heavy machinery. The world shipping container market has been observed to be constantly expanding. The rate is almost twice that of current projections.
Due to this increase, high cube container investments are also growing. More importantly, owing to the guaranteed and continuing return rate, investors are willing to pool in more and more money into this form of investment as against bonds and real estate investments.
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Real estate investments and bonds have their limitations. They are highly influenced by the market rate and market ups and downs. This is not the case of shipping container investments that have seen constant growth in the recent years.
Shipping containers are considered largely a secure investment. It has been popularized as a risk-free high return investment. However, even these have their own risks and it is important to know the risks before investing in any venture. Shipping investment companies reduce the risk to a great extent. That is why it is important to invest in trustworthy companies.
Table of Contents
1- Liquidity
Shipping containers do not enjoy liquidity. This means that procuring the containers is easy; however selling them is very hard. Once you purchase them, you can make money out of them only until they are in condition and usable. When their life expires they will become useless to you and others.
2- Unguaranteed returns
If you happen to meet a good client, you may get your guaranteed return. However, this does not mean that companies are all stable. If a company becomes bankrupt is unable to pay you, you will be at a loss. Insurance provides some level of guarantee but that depends on the insurance policy and what it covers.
3- Broker
The greatest risk in your investment may be your investment company itself. Most companies are reliable and trustworthy, but that doesn’t mean that all companies are trustworthy. If you end up investing with a company that is a scam, you might as well as say goodbye to your money.
4- Unverifiable
It is not possible to verify the high cube container if you are working through an investment company. Since you can’t verify your investment there is always a risk that something unpredictable can happen.
These risks are what make shipping container investments a bit shady. However, the return of risk is profit. If you can do proper research and invest in a legitimate company, you can reap the reward of this investment as high and constant returns. The life of shipping containers is long typically 20 years, so a constant return for 20 years would be a good bet to make.