Today I was doing some research into various investments, and came across one that made me do a double take – shipping containers!
Apparently you can invest in shipping containers and earn a fixed return of 12%. Is it too good to be true? Are people actually making money from this? I decided to do some digging and find out more about this alternative investment.
How does investing in shipping containers work?
Basically you front up the capital to purchase a shipping container, and then this container is leased to shipping companies. The entire process happens automatically by the shipping container investment company – meaning you don't need to buy the container yourself, just front up the cash.
The companies claim that the containers are covered by insurance if they get damaged or lost, but I have no way to verify this.
Is it all a scam?
It's really hard to tell. I haven't been able to find any horror stories online, but that necessarily doesn't mean it is legit. On the flip side, I also haven't been able to find anyone who hast posted online about their success investing in shipping containers.
Because you are buying a physical asset, the companies don't need to deal with the same type of regulation as other investment products. This does mean there is potential for scammers to operate in this space.
- You're not going to lose more than you put in
- returns that are higher than term deposits
- Lack of proof that this actually works.
Although I love experimenting with different types of weird investments, I can't see myself putting down the money to buy a shipping container. With no regulation and no proof that people are actually making money, i'm staying away. If you have invested in containers, I'd love to hear how it's been performing for you.