Friday 4 April 2014

How Pacific Tycoon Container Leasing Makes Perfect Sense

Many investors are now looking at shipping container leasing with renewed interest. This sector has proved to be an interesting one from numerous perspectives. It is an easy to understand and simple business and that is probably why people are getting attracted to it in droves. Companies that are involved in the business of container leasing as well as other related equipment largely cater to shipping lines. Industries such as trucking and railways also require these containers, but on a much smaller scale.

Making the Best of the Comeback


Shipping companies reeled under the economic downturn in 2008-2009 and they are still trying to make up for the decrease in margins that they had to suffer then. Despite the adverse economic landscape, the fact is that goods will have to be transported from one part of the world to another. What is interesting to note is that a major percentage of this trade and movement of goods takes place via sea routes and ships become the key transportation vehicles.

All Bases Covered


The goods are first packed into immense shipping containers and then shipped to the desired destination. Companies that are involved in container leasing are now leveraging the increase in exports from China to the rest of the world. There are a number of pros in favour of this business and Pacific Tycoon container leasing is now proving to be an excellent alternative investment opportunity for many an investor. Here are a few benefits that make it a lucrative investment opportunity:

  •            Meeting Industry Demands- Shipping companies are increasingly leaning towards leasing containers versus owning the boxes. This gives them the logistical flexibility they need as they can lease only as many or as little as they want. But the general trend is that since the supply of containers is not high enough to meet the demand from shipping companies.

         Thus, most liners prefer entering into long-term leasing contracts with the leasing companies. This guarantees that they get the number of containers they need at a specific time. This high demand proves to be a boon for investors and they keep getting steady and high returns.

  •            Lower operational costs- Shipping container leasing businesses are run via an office with agents who might be in different parts of the world. Since a large number of containers that leasing companies have, belong to the investors, their operational costs are very low. Since the inventory is managed via databases and online portals the overhead costs are negligible. All of this also means that their profits are higher and these profits are also passed onto investors.

  •           Inventory value- Well-maintained containers can last for upto 20 years. Once they reach the end of their useful lifespan, they can then be sold-off to 3rd parties or as scrap which gives investors an opportunity to recover a sizeable portion of the capital investment.

         Even as global trade flourishes, these companies will continue to make immense profits and so will the investors who have been adventurous enough to divest their capital into lucrative Pacific Tycoon container leasing.

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