Have you ever considered that those massive steel boxes used for global shipping could actually be a valuable investment? Investing in shipping containers might sound a bit out there, but it’s a concept gaining traction lately. These ubiquitous steel boxes, once solely associated with global trade, are now catching the eye of investors seeking a unique and potentially lucrative asset. But before you jump on the bandwagon and start investing in shipping containers, it’s crucial to understand the ins and outs of this alternative investment strategy. We’ll explore the potential upsides, the potential downsides, and everything you need to know before taking the plunge.
The Rise of the Shipping Container Investor
Shipping container demand is booming. The global trade market is experiencing sustained growth fueled by e-commerce and globalisation. This translates to a constant need for sturdy, secure containers to transport goods across continents. As a result, the supply of new containers can barely keep pace with demand, driving up prices and piquing the interest of potential investors.
Investing in Shipping Containers: Pros and Cons
So, is a shipping container investment in Australia a wise decision? Let’s weigh the pros and cons to help you decide.
Pros:
- Tangible Asset: Unlike stocks or bonds, a shipping container is a physical asset you can own and see. This tangibility can appeal to investors who prefer a more concrete investment.
- Relatively Low Maintenance: Shipping containers are built to withstand harsh conditions on the open seas. Compared to other investment properties like real estate, they require minimal maintenance.
- High Demand: As mentioned earlier, the demand for shipping containers is on the rise. If you choose to lease your container, this strong demand could yield good rental returns.
- Diversification: Adding shipping containers to your portfolio can diversify your investments and potentially mitigate risk. By spreading your investments across different asset classes, you can lessen the impact of a downturn in any one sector.
- Eco-Friendly Investment: Repurposing used shipping containers extends their lifespan and reduces the need to manufacture new ones, benefiting environmentally conscious investors.
Cons:
- Shipping Container Depreciation: Like any used good, shipping containers depreciate in value over time. While they may hold their value well compared to other assets, it’s still a factor to consider.
- Illiquidity: Shipping containers are not easily traded on a stock exchange. Selling them can take time and effort, unlike stocks or bonds, which can be readily bought and sold.
- High Demand: As mentioned earlier, the demand for shipping containers is on the rise. If you choose to lease your container, this strong demand could yield good rental returns.
- Management Considerations: If you plan to lease your containers, you must factor in management costs, such as finding tenants, handling repairs, and ensuring timely payments.
- Market Volatility: The shipping industry and container demand are susceptible to economic fluctuations. A global recession, for example, can significantly impact demand and rental rates.
- Beware of Scams: Unfortunately, the growing popularity of shipping container investments has also attracted scammers. Do your research, avoid shipping container scams, and only buy from reputable sellers.
Investing in Steel
If you’re still interested in exploring how to invest in container shipping, here are a few options to consider:
- Buying New or Second-Hand Containers: Both new and second-hand shipping containers for sale are available. New containers offer a longer lifespan but come at a higher price. Used containers can be a more affordable option, but be sure to thoroughly inspect them for any damage or rust.
- Direct Ownership and Leasing: You can purchase containers outright and then lease them to companies or individuals for storage or other purposes. This requires managing the leasing process yourself.
- Container Investment Funds: Some investment funds specialise in shipping containers. These funds pool money from multiple investors to purchase and manage a portfolio of containers. This option offers a more hands-off approach but may come with higher fees.
The Bottom Line
Shipping containers can be a viable investment option, but they are not a guaranteed path to riches. Consider your risk tolerance and investment goals and carefully weigh the pros and cons. Before buying a shipping container, conduct thorough research, understand shipping container depreciation, and ensure you’re buying from a reputable source. Remember, diversification is key in any investment strategy. Consider whether shipping containers complement your existing portfolio and align with your overall financial objectives. Remember, investing wisely is key to achieving your financial goals.
Beyond the Investment: Betta Storage – Your Container Partner
Whether you’re exploring shipping container investments or simply need secure storage solutions, Betta Storage can assist. We offer a range of secure storage options, including traditional storage units and, in some cases, even container storage solutions. Contact us today to discuss your storage needs and explore your best options.
1. Site Selection
If you are not mounting the container for the long term, choose a spot where the ground is even and the soil firm and compacted so that it will support the frame of the container. If your site is rough or slanted you can add a layer of gravel or small stones to keep the container stable and secure.
2. Surroundings
If your container is going to remain in place for a length of time, it can be valuable to pave the surrounding area prior to installation. This will provide a solid firm base for your structure and will enable you to utilise the outer area of the container more easily.
3. Vehicle Access
If your site is in a position behind other buildings then you may have trouble getting your container to your site. There are options to have your container dropped in situ’ by a crane but this is expensive. If your site is accessible by vehicle you will keep delivery costs down. Setting up storage containers in Sydney, where the topography varies, it is a great idea to prepare a level area prior to delivery.
4. Weather conditions
It is ideal to have your container delivered on a day free of rain, after a dry spell. Installing your container directly onto sodden earth may lead to sinkage and misalignment of your final structure. If you are in a particularly rough area you may need to secure your shipping container to the ground, but in most circumstances, the natural weight of the container will hold it firmly in place.
5. Ventilation
If you are concerned about water or drainage around the site of your container then it may be worthwhile setting the container down on concrete blocks. This will keep it raised from ground level, free of moisture and well ventilated.
Betta Storage are your local Sydney specialists in movable new and used storage containers. Contact us to discuss your requirements and let us help you choose the right container for your needs.