Shipping Container Bizops
photo credit: papalars
Have you noticed the signs along the highway advertising cheaply-priced metal storage containers? Have you ever wondered what those are and where they came from?
Nearly every product imported into this country is transported via a ship in a metal shipping container. Once the ship arrives in port, the containers are removed from the ship via a large crane and transfered onto railroad cars and tractor trailers for transport into the interior areas of the country.
In the United States we have an overabundance of used shipping containers because of the economics of international trade:
1. We import more than we export.
2. It’s not very profitable to return the containers to their source country. In China, for instance, it costs $2,300 to manufacture a container. Shipping a container back from the United States to China costs over a thousand dollars. I need accurate numbers for returning a container to China. Anyone have some?
photo credit: bejnar.net
Opportunities
Luckily, for the entrepreneur, the large number of used shipping containers just sitting around makes for some interesting business opportunities. Used shipping containers can be used for storage, housing, offices and restaurants.
Further reading: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger.
Angela on January 30th, 2009 3:04 pm
The photo of the restaurant is priceless.
My favorite use is when I hear about them being converted into homes. I’ve heard that they’re inexpensive and sturdy.
Matt on January 30th, 2009 4:42 pm
Am I missing something? If it costs $2300 to make one there and only $1000 to ship it back, wouldn’t companies in China be saving $1300 bringing back used ones from the US to send again? Or wouldn’t some kind of rental system make sense? There must be more to the story than these basic facts.
Jaclyn on January 30th, 2009 5:19 pm
The picture of the restaurant is priceless i have to agree! the other picture of all of them just sitting around taking up so much room, rusting and i’m sure causing some kind of contamination into the ground water system is just plain sad though.
Dane on January 30th, 2009 7:20 pm
Matt, you’re right. There’s something wrong with the numbers. I’ve updated the post to reflect that.
Thanks.
cassy on February 4th, 2009 5:38 pm
I have seen a house that made of shipping container before and its really cool! You can’t really recognized that its made of container, the owner makes unique designs that makes the house more elegant and beautiful.
Site O Rific on February 20th, 2009 7:32 am
I’m in the process of building a container home. There is a great new book out called Container Architecture for those that are interested. There is also an interesting book called ‘The Box’ about the bizarre history of the shipping container.
Miles
Ra mon on February 23rd, 2009 10:36 pm
I am from Malaysia. I want to purchase used 20′ and 40′ containers a lot. Anyone , please help me. Send me CIF price to Port Klang/ Malaysia
My email > crosswiseent@gmail.com
John on March 20th, 2009 12:03 pm
Ok. Let me dispell a few myths here.
1) The shipping lines (companies that own and operate the ships) own the containers, or have them on long term lease.
2) Containers are used and re-used by the shipping line’s customers, so no one is manufacturing them and discarding them. In addition, containers are a capital investment and therefore the cost is borne by the line over a period of years (basic amortization accounting here)
3) It does not cost $1000 to ship an empty container back to China. The line will pay the cost to lift the container on the ship in the U.S., then discharge it on the other side. This usually amounts to about $500 altogether.
4) These shipping lines are global in scope, so the container that has come here with goods from China does not necessarily return to China. It could be loaded with export goods moving just about anywhere in the world.
5) And this is the most important point. The trade imbalance is getting smaller due to the recession. Many lines do not have the same problem with surplus empty containers in the US as they had in the past, simply because the economy has “tanked”.
I have 20 years in the shipping industry with several major carriers. This knowledge comes from experience.
alex on July 5th, 2009 1:16 pm
John, can you tell us where to buy used containers(20′ and 40′), and roughly what the cost should be to a “retail” consumer and why?
Don on July 6th, 2009 11:30 am
Dear Alex
Thanks for the information on containers. Where would the best place be to start looking to a purchase container? Shipping co? port? ?? and what should i expect to pay for a storage container 10×20? I am on Vancouver Island.
brandon on July 14th, 2009 10:52 pm
can any one tell me where i can buy containers. and what i am lookn to pay for used ones.
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