The buying and selling of containers have been going on for decades. However, container trading has revolutionized global trade in such a short period of time. And even opened up new economic opportunities around the world.
What are Trade Containers?
Shipping containers are robust and durable metal boxes used for the transportation of goods from one location to another. They are typically made of steel and are built to endure extended shipments.
Standardized containers have transformed the shipping and logistics industries, allowing the transportation of goods easily by road, rail, and ship, as the containers can effortlessly fit onto different modes of transport. Container standardization has increased efficiency and economies of scale when transporting the approximately $3 trillion in the trade that passes through our transportation systems each year, from aerosol cans to zebras!
What Does Container Trading Entail?
Container trading is a necessary component of modern logistics. It appears straightforward: one party sells containers while another purchases them. But it’s not as easy as it sounds. There are numerous shipping companies that trade containers. And end users constitute a very small proportion of buyers. So, if end users are not purchasing containers, to whom are traders selling?
Simply put, container purchasing is primarily about establishing a container fleet for the purpose of leasing out containers, and selling containers is primarily about profit or asset liquidation in the re-selling markets.
Types of Trade Containers
Here are the different types of trade containers in Dubai you can find.
Flat Rack Containers
A flat rack is typically used to transport or store cargo with uneven dimensions. Flat rack containers have sides on the short side of the container, the bulkheads, allowing the cargo to stick out the side during transportation.
Flat racks are typically available in two sizes: 20 feet and 40 feet. The choice is determined by the size of the cargo. Typically, the only difference between these two types is their length. The width and height are frequently the same. These have foldable collapsible sides and are ideal for transporting equipment, boats, and automobiles.
Open Top Containers
Open Top Containers are structurally distinct. They are distinguished by an open top protected by a tarpaulin. These containers are designed specifically to store large, awkward cargo that cannot be transported in conventional containers, ideal for items such as machinery or logs.
Dry Storage Containers
The most common containers used in the shipping industry are dry storage containers. They are available in lengths of 20, 40, and 45 feet and are designed to transport dry goods. Because these containers do not have temperature controls, they are not suitable for transporting food or chemicals that need refrigeration.
Open Side Containers
Because they are a cost-effective and environmentally friendly way to store or ship goods, open-side shipping containers are a popular choice in many industries. They’re a great option for short-term storage when you need space for something else. This post will go over everything there is to know about open-side shipping containers. What they are, how they function, why you need them, and what you should know about them.
Also known as reefers, refrigerated containers are critical for the global trade of both food (fruit, vegetables, meat, fish, and dairy) and non-food products such as pharmaceuticals and flowers. Aside from that, refrigerated containers are frequently used to keep food and beverages cool. Cooling occurs both during shipping and storage.
A tank container is a cost-effective solution for hazardous or non-hazardous bulk liquid transportation. Tank containers have a lifespan of 20 to 35 years and ensure the safe and easy handling of goods. As a result, they are a viable and sustainable shipping solution for many.
Who’s Involved in Container Trading?
Container trading, as is well known, involves a number of shipping companies. The following are some popular parties involved:
Container Leasing Companies
Container leasing companies are container manufacturers’ primary customers. These companies buy a large number of containers and then lease or sell them. These businesses serve as container suppliers.
Typically, a leasing company’s regional manager is in charge of selling containers in specific regions. The majority of the equipment in the sales stock is at the end of its lease period.
Container manufacturers, as the name suggests, are companies that construct shipping containers. It’s critical to remember that manufacturers are not the same as suppliers. Quality containers are sourced and acquired by suppliers from manufacturers. Manufacturers, on the other hand, make boxes from raw materials.
Manufacturers sell equipment in large batches that are built to order. It takes at least 30 days for your containers to be delivered from the manufacturing unit. If you are a new customer, you will be asked to make a pre-payment when you place your order. Manufacturing companies also offer used containers for sale in UAE.
Carriers and Shipping Companies
Massive container fleets are owned by carriers and shipping lines. They also buy containers from manufacturers directly. However, trading accounts for a very small portion of their overall revenue.
Carriers will sell their used containers to a few large container traders on occasion. As a result, they can keep the process predictable and manageable.
Container traders’ main line of business is to buy and sell shipping containers. They also have regional sales managers in charge of selling containers. However, not all container traders operate in the same manner. A large container trader has a well-established buyer network in many countries. A mid-sized container trader, on the other hand, specializes in trading in only a few locations. Container traders frequently hold used container sales where you can find trade containers on a budget.
NVOCCs transport your cargo without using any vessels of their own. They acquire vessel-operating common carriers and sell them off to shippers. NVOCCs may operate their own container fleet between the ports where they provide their services for the sake of convenience. As a result, they purchase containers from traders and suppliers in order to keep their business running.
They also profit by purchasing containers in a low-cost location, relocating them to, and selling them in a profitable location. They also sell their own containers that have landed in unsuitable locations for export.
Individuals and End Users
People may be interested in purchasing a container as well. It is frequently used for recycling or long-term storage. Do you only need one container? You can easily find individual containers for sale in Dubai!
How Does Container Trading Work?
For many years, container trading was performed manually. You rely on a large personal network, pre-existing partnerships, and industry experience. You may even need to conduct online research at times.
Let’s go over how container trading works.
If you’re running a medium-sized freight forwarding company, you must instantly check out used containers for sale in UAE.
So, how exactly do trade containers work?
- You choose the type of container you want to purchase.
- You set a budget for the containers. The forecasts are based on previous prices or market knowledge.
- Then you check to see if that container type is available in your area. You do this by searching the internet, sending emails, and calling people in your network.
- When you find a seller who has containers you want, you look for their contact information and negotiate the details.
- Lastly, you finalize the purchase.
Trade Containers: Common FAQs
Is Container Trading Profitable?
Shipping container profitability is determined by a variety of factors, such as demand and supply, availability, location, and market conditions. In the long run, owning shipping containers is profitable because it saves money on leasing.
Are Trade Containers a Good Investment?
Shipping containers are an excellent long-term investment. When you are not using containers, you can rent them out to other container users to generate passive income.
Is There a Market for Trade Containers?
There is a huge market for trade containers. Royal Gulf Shipping allows you to buy, sell and lease all types of standard and special containers.
How Do You Make Money Selling Trade Containers?
Making shipping containers available in high-demand locations is one of the most profitable ways to make money selling them. This allows you to charge a higher price for your boxes.
Dubai Trade Containers
It can be difficult for a new business to find containers to use. Therefore, they must consider exploring a 3PL warehouse manager like Royal Gulf Shipping. We’re the best in the business if you’re searching for containers for sale in Dubai!