# Shipping Containers



## john.cray (Dec 7, 2016)

Hello everyone,

This is my second posting here and I apologize if this topic has been discussed previously. I couldn't find anything on this forum.
As the title suggests, I am curious to know what individual opinions are regarding investing in shipping containers. I am fairly new in investing as a whole and came across this type of an alternative investment which quickly made me suspicious.

In particular I have the following questions:
1. Is this a scam (ponzi scheme) or there are in fact some legitimate companies?
2. They seem to promise a 10-12% "guaranteed" return when leasing on a regular basis. That seems way too high, doesn't it?
3. Does anybody have real experience with those? Which company?

My overall impression is that the whole thing is quite shady, but wanted to ask here anyway.
Appreciate your input.

Regards,
JC


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## bgc_fan (Apr 5, 2009)

Do you have a bit more information to go on? I.e. a company name or website? I have some passing knowledge in shipping containers and am curious about what type of business you are referring to.


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## john.cray (Dec 7, 2016)

I should have provided some links initially. I apologize.

There seem to be many companies doing this but the one that stands out the most is Pacific Tycoon (http://pacifictycoon.com/your-shipping-container-investment/). Lots and lots of happy as well as unhappy/scammed customers (https://pacific-tycoon.pissedconsumer.com/), which makes me think it's a ponzi scheme.

Another company I found: http://davenportcontainers.com/

Might be that some of them are legitimate and some aren't, hence mu inquiry here.


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## TomB19 (Sep 24, 2015)

I suspect there is money in leasing containers. A 40 foot container is only 3~4K, so they are relatively cheap to purchase.

Small time importers end up leasing a container from their freight forwarder and the cost is pretty high. I imagine the leasing charge is close to $1000, but I've never seen an itemized bill from a forwarder. They "roll it all in".

It appears, with knowing approximately nothing about the industry, that a select group of companies can make a pretty decent return.


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## Davis (Nov 11, 2014)

If it is such a good investment - high yield and no risk - why is someone willing to cut you in on it? Why don't they keep these juicy returns for themselves?

If you ask, they will probably say, "this is just our business model", as if that means something. If their business model is to pass along great risk-free returns to someone else, they don't sound like good business people.


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## ian (Jun 18, 2016)

I got some bumpf advertising this about eight months ago. I did a little research on google. It is a SCAM. 

Google and you will find several articles. One of the larger outfits operates under several names.

Whenever I get shilled on some investment opportunity that is safe/guaranteed/ etc and pays 11 points plus per annum it always turns out to be a scam. These are no different.


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## hboy54 (Sep 16, 2016)

For someone who in his own words is new to investing, I find it very difficult to think that shipping containers is the place to start.


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## Koogie (Dec 15, 2014)

TomB19 said:


> I suspect there is money in leasing containers. A 40 foot container is only 3~4K, so they are relatively cheap to purchase.
> Small time importers end up leasing a container from their freight forwarder and the cost is pretty high. I imagine the leasing charge is close to $1000, but I've never seen an itemized bill from a forwarder. They "roll it all in".
> It appears, with knowing approximately nothing about the industry, that a select group of companies can make a pretty decent return.


Ahh, no. Ocean containers are owned or leased by the shipping lines, not by freight forwarders. Freight forwarders only arrange the movement of containers and rarely come into direct ownership or leasehold. 

Other than the ones directly owned by oceanlines, a significant portion of the ocean containers you see are on long term lease to the oceanlines by a small number of huge container leasing/manufacture companies. Triton, Seaco, Textainer, etc...

If you want to know something about all the ocean containers you see on the road, check out their four number prefix code (ACLU, etc..) You can't go by the name painted on the side, a lot of them are still leased boxes. 

This database will tell you who actually owns it by checking the prefix code: https://www.bic-code.org/consultation-of-the-containers-bic-code-register.html

To the OP, no. That's mostly a scam for suckers.


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## humble_pie (Jun 7, 2009)

hboy54 said:


> For someone who in his own words is new to investing, I find it very difficult to think that shipping containers is the place to start.




evidently canadian movie star donald sutherland, in his hollywood heyday earning serious money, once consulted a leading international firm of chartered accountants for financial advice, in his case geared to smoothing the effects of roller-coaster gigantic income.

the CA wizards prepared a plan for sutherland, who duly attended at a second meeting to learn what his financial future might hold.

There are three things that would work for you tax-wise, said the wizards. Containers. Movies. Slums.

We've decided to put you in slums, they told sutherland.

.


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## john.cray (Dec 7, 2016)

Thank you everyone for your answers. As I pointed out initially



> My overall impression is that the whole thing is quite shady, but wanted to ask here anyway.


Most of all, I wanted to know if anybody here has first-hand experience dealing with those companies. If nothing else, this thread might serve as a warning to others.


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## TomB19 (Sep 24, 2015)

Koogie said:


> Ahh, no.


Thanks, Koogie. You may have just saved me some nice coin.

A friend of mine brought in a container full of goods from China a couple of years ago and plans to do so more frequently in the future. His forwarder suggested he and he buy a sea container. I was considering splitting it with him, It sounded like a good idea.


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## Koogie (Dec 15, 2014)

Either your friend misunderstood or the forwarder is a shyster. Either is equally possible. Forwarding attracts some real beauts.
If you ever need a recommendation for a good one, let me know. 

Cheers.


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