China has emerged as one of the biggest markets in the world, with its population exceeding 1.35 billion. The market of Asia is gradually becoming the centre of world commerce. The Chinese market has made its mark particularly in the marine trade. There are several reasons behind China becoming the centre of marine trade.
The booming marine industry in China has led to numerous container Investment opportunities in China. As containers are the core of the marine industry, the increasing demand for international transportation of goods has also increased need of shipping containers.
Some of the reasons behind the expansion of Chinese shipping industry are stated below:
The global economy is developing and expanding constantly, allowing the eastern and western ports to grow alike. Besides, new commercial shipping lines are being constructed from the Far East to the US harbors. The increasing demand combined with the rising quantity of goods is leading to increased profits of shipping companies belonging to the Asian-Pacific market.
The Chinese markets have shown a growth of about 8%. Moreover, the sea ports of the pacific are undergoing many developments owing to the growing traffic of ships consisting of containers.
The Pacific Area:
Numerous countries present in the Pacific area like Thailand, Laos and Vietnam are growing economically. The maritime trade has also large increased, and the shipping traffic has increased as well.
The prices of oils have undergone unstable fluctuations in the last few years. However, they are stabilizing now. Moreover, the newly emerged technologies have resulted in a reduction in fuel usage, hence minimizing the transportation costs in the future.
These reasons have led to the popularity of shipping container investments. The demand for containers is high in Chinese marine industry and the other parts of the world. Container investment forms an effective alternative increment, which results in high profits. Cargo is shipped through the seas primarily, and this has continued right from the ancient ages. Around 90% of the global trade is carried out by sea.
Overview of shipping container Investment:
Container investment requires an investor to buy a fleet of cargo containers. These containers are then rented to international shipping companies by the investors with the help of container management companies. The internal shipping companies deploy these containers in transportation of goods from one place to another across the world. As the containers are used, the returns yielded are sent to the respective investors.
Asset management companies have a major role to play in helping investors invest in shipping containers. The investment involves low risks as it is rarely affected by political unrest and economic downturns. The returns are quite steady in such an investment. Containers are lowly correlated to traditional asset classes like stocks and shares.