The cargo shipping industry is an alternative investment, that more and more investors are looking toward, when considering where to invest their money. In particular, shipping container investing, seems to be a very popular choice; for novice and expert investment-seekers.
It would seem that the expansion of the Panama Canal (due for completion in 2014), has governments all over the globe investing in their infrastructure, in order to capitalize on the projected economic boom; for their region. Furthermore, worldwide port and channel improvements, are having a positive affect on the cargo shipping industry, as well. The increase in government confidence, has created a higher demand for cargo ships, and in turn, created a sharp rise in demand; for shipping containers.
As international trade recovers all over the world and economies become more robust, the worldwide demand for containers is expected to increase, and will require enormous private investment; in order to meet the growing demand. Paving the way for investors and this alternative investment opportunity, are a number of container management and leasing companies. Some of which are public, and some are private.
One of the leading private companies in the shipping container industry, is Pacific Tycoon. This container leasing company from Hong Kong, claims to be “one of the most reputable and well known companies in the Pacific region, for the leasing of containers.” This is how the investment works. The investor has the option to purchase a container from their own sources, or they can purchase them from Pacific Tycoon. Then, the shipping containers are leased to shipping lines (put to work) and generate a monthly/quarterly income, for investors.
Pacific Tycoon offers two different asset lease plans to container owners (investors). Their claim to potential investors is that their investment is safe, guaranteed and generates high-yield returns. In this competitive market, Pacific Tycoon’s Guaranteed Lease offers investors 12 per cent interest on monies made, from the leasing of the container. At the end of the year, if the investor chooses to sell their container, Pacific Tycoon agrees to buy the container from investors; for the price it was originally purchased for. This translates to: your original investment + 12 per cent.
It sounds simple, because it is. The success of this investment opportunity, is based upon the economic laws of supply and demand, and the long-term leases negotiated by container leasing and management companies; like Pacific Tycoon. Currently in the shipping industry, there is a high demand for shipping containers, and thus money to be made for the expert and novice investors; who can provide containers to meet demand.