shipping containers good alternative investment

Shipping Container Investing: A Great Alternative Investment

Posted on Posted in Alternative Investments

The fact that the one or two percent interest earned in a savings account hardly meets the rising cost of living, and bonds run the risk of not matching the rate of inflation, means that investors could potentially lose money with these low-risk investments. To me, these so-called “safe” or “low-risk” investments don’t seem very safe. Investment seekers would be wise to place their money into an investment that delivers a rate of return greater than the effects of these adverse economic conditions, would they not?

According to economists, the ideal target rate of inflation is two percent. Therefore, to maintain the precious principle in a portfolio, investors must focus their attention on investment opportunities that offer (at least) a rate above the expected level of inflation. In order to achieve this, many investment seekers are turning to alternative investments for better performance and better returns. Leading the list of the most favorable alternative investments is shipping container investing.

With approximately ninety percent of the world’s trade travelling by cargo ship, shipping containers play an important role in fueling the global economy. It is the constant demand for this hard asset, coupled with returns of approximately 12 percent, that maintains its position as an investor favorite. Also appealing to investors is that it is truly a low-risk investment.

With the help of a container leasing company, investors’ shipping containers are leased to bonded shipping and logistics companies. Moreover, shipping containers are subject to security at ports and terminals. This means a lower exposure to risk of loss, given the fact that someone is always watching and recording the movement of containers.

Ideally an investment will pay a monthly return, dividend, or interest that can be used to supplement an investor’s income, or be reinvested for bigger profits in the future. Historically speaking, traditional investments like stocks and bonds cannot be relied upon to deliver the performance that investors need to beat the rising costs of living and address the threat of inflation. On the other hand, investing in alternative investments – like shipping container investments – have proven they offer lower risk exposure and higher returns, two characteristics heavily favored by international investment seekers.

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