As upbeat economic forecasts continue to project prosperity and steady growth for the global economy, you can be certain that the need for cargo containers will remain strong. Their important role in the international shipping industry makes them indispensable to the world’s shipping companies and businesses, who are working constantly to meet the rising demand for consumer goods in both emerging and developed markets, all across the globe. This is among the unique benefits of investing in shipping containers, and part of the over-all appeal of making an investment in the sector.
Rising Demand for Containers
Despite adversity in the industry throughout much of 2013, the global shipping container fleet continued on a path of steady improvement and is expected to experience growth of up to 5 percent in 2014, according to Maersk Line; a world renown shipping industry leader. Much of this continued rise in demand can be attributed to the ongoing development of prospering emerging markets, like China, India, UAE and Brazil.
It is in these regions where the population’s increasing consumption is driving the ongoing need for shipping containers. Make no mistake. Developed nations like the United States and United Kingdom are still experiencing steady growth and continue to make increasing demands on the global container shipping industry, as well.
Shipping Industry Outlook
Many of the shipping industry’s leaders have invested hundreds of millions of dollars in much larger and more efficient container vessels. Although at the moment only a handful of these enormous vessels have joined the global fleet, dozens more are expected to begin traveling the world’s trade routes, later in 2014 and into 2015.
To accommodate the growth in containership size, trillions of dollars have been spent on shipping port and infrastructure improvements, all over the world. From cleaning and dredging waterways to gigantic ship-to-shore cranes, international ports have had to invest in themselves to ensure they will remain competitive; now and in the future.
The Shipping Sector as an Investment
For the most part, investment returns are determined by profit, and profits are determined by supply and demand. The global shipping industry operates at the heart of international trade and shipping lines generate profits from supplying the rising demand that feeds strong economic growth, in the world’s nations big and small.
This means that continued growth in the shipping sector can be expected to offer the investment community an opportunity to invest, that will repeatedly deliver improved performances to investors, based on worldwide economic growth and increasing consumer demand.
My Personal Thoughts
Like any other investor, I am always on the look-out for emerging trends and a secret investment. The difference between myself and the majority of other investors is that the world’s stock markets have lost their appeal and the allure of gold has (for me) been tarnished. I like to focus on the long-term. Nowadays I carefully select investments that are not only performing well today, but also performed well during/after the global financial crisis that erupted in 2008-2009.
This approach to investing offers me piece of mind. If the world’s markets were to (once again) experience enormous hardship, the pillars of my portfolio will carry much of the burden. For the moment, I am counting on the international shipping industry to be one of those pillars.