Shipping container investment has become increasingly popular in recent years as investors seek alternative assets with high returns. This article will provide a list of the top container investment companies and key information about investing in shipping containers. We will cover the benefits, risks, required capital, and expected returns of container investments. With the global supply chain under pressure, container investments present a unique opportunity.
The top 5 container investment companies
Here are 5 of the top companies in the container investment industry:
1. Container Investment Management – A large container leasing and management company with over 30 years of experience. They lease containers to large shipping lines and have a large fleet available for sale and leaseback.
2. Seaco – One of the world’s largest container lessors with over 2 million TEUs of containers. They provide financing services and also sell used containers. Has a global presence with offices worldwide.
3. Triton – A diversified leasing company that offers shipping containers for sale and lease. They have containers available in Asia, Europe, and the Americas. Also provide management services.
4. Textainer – A highly diversified container lessor with experience since 1979. They lease containers to over 300 shipping lines and have a fleet of over 2 million TEUs. Based in Hamilton, Bermuda.
5. CAI International – Provides container leasing and management services worldwide. Has a fleet of over 1 million TEUs. Specializes in standard and specialized equipment leasing.
Key benefits of container investments
Here are some of the key benefits of investing in shipping containers:
– Stable cash flow – Containers produce monthly cash flow from long-term leases to shipping companies. Average lease terms are 5 years.
– Low volatility – Container leasing tends to be stable as it relies on global trade volumes. Not highly correlated to stocks.
– High returns – Expected returns are typically between 8-15% per year. Much higher than many other asset classes.
– Alternative asset class – Containers provide portfolio diversification as most investors don’t have exposure.
– Tangible asset – Containers are a real, tangible asset you can see and touch. This contrasts with other financial assets.
– Mobile asset – Containers are a mobile asset that can be easily relocated around the world to meet demand.
Key risks and considerations
While container investments offer many advantages, there are also risks to consider:
– Illiquidity – Containers are an illiquid investment and can be difficult to sell quickly. Plan to hold them long term.
– Operating expertise – You often need operational expertise in the industry to manage the leases and operations.
– Capital required – You often need a large amount of capital to invest in a diversified portfolio.
– Regulations – International regulations related to transportation and shipping need to be monitored.
– Macro conditions – Global trade volumes impact performance so economic conditions need to be monitored.
Capital required and expected returns
The amount of capital required depends on how many containers you plan to purchase. New containers cost between $2,000-$2,500 per TEU. Used containers cost $1,000-$1,500 per TEU.
Most container investments yield between 8-15% returns per year. However, you need sufficient scale to earn these types of returns. Investing in just 1-2 containers will not provide optimal diversification. Most experts recommend owning at least 10-20 containers to have a diversified portfolio.
Container investments represent an attractive alternative asset class with stable cash flow and high returns uncorrelated to traditional stocks and bonds. While capital requirements are high, the top container investment companies provide ample opportunities for accredited investors looking to diversify.