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What does it take to profitably rent containers in the One Way space?

If you found out that it is possible to rent a container for $10,950 dollars per year, or more, on a $3500 dollar investment would you be interested? Warren Buffet, one of the richest men in the world thinks so. He owns one of the largest container rental companies in the world.

Post your equipment needs or availabilities for Free at our sister site, sparecube.com

How many times can you Rent a Box? There are over 200 million opportunities per year in 1 Market Channel and growing!

If you are looking for an investment opportunity that will strengthen your portfolio across diversely growing market channels, investing in equipment leasing endeavors may be worth taking a look at. As an Equipment Lessor, or prospective lessor, you not only invest in equipment but you are investing in diverse markets demanding container service across a multitude of industry channels and a business that has a solid strategy for long-term success. Container are literally, commoddities. They can be lower in value where there are surpluses or equipment and at premium values in deficit markets. The secret is to find these markets and move containers into them. But how do you move them? What is the cost? The key is to find freight that someone needs to move and has to pay for, but perhaps you can offer them a container at a discount. Maybe they also may need to rent the container for short or long term storage after their freight, and your container, reaches its destination. Consider this scenario of a One Way Rental, the most profitable in the industry.

  1. Railroads and steamship lines typically charge $50 to $100 dollars per day to shippers(the ones renting the container) to move their freight from point a to point b.
  2. For simplicity, it takes 10 days to move the freight from A to B. Take an average of $75 per day x 10 days, this is $750 dollars. (They will typically charge penalties if the equipment is not returned at the end of the term and the price can start at $125 per day for 5 days and then increases to $175 per day after that).
  3. The container costs $2500 dollars to purchase.
  4. You get the picture. If you can invest in a container for $2500 dollars, rent it for $75 per day for 365 days, this is a potential income of $27,375 on a $3500 dollar investment!

But the challenge is where do you go to make your investments, promote your opportunities, network with other equipment traders and conduct your transactions? There are systems that are available to large members of railroad, steamship and trucking operations, but these systems are very expensive and have strict requirements. These systems are not in the market of casual or smaller businesses. This is the purpose of sparecube.com and one of the gaps sparecube fills! Sparecube.com provides a portal for equipment suppliers and consumers to post, promote and communicate their needs to each other. The bonus is, sparecube.com, on a global level and throughout the web, is promoting the postings as a whole throughout the internet.

Globally, across markets, the use of containers to move products dominate the transportation of non-bulk commodities and continues to ripple into and economically impact many sub-industry segments. For example, according to the Center for Transportation Research, in 1999 over 200 million container moves took place across the world maritime ports, and the forecast suggests strong growth in the future. In addition, according to the Intermodal Association of North America, the leading trade group, 2004 marks the year that container freight passed coal as the number one source of railroad revenue in the United States. The positive statistics just go on and on, regardless of which data one chooses to analyze.

It's a significant piece of your history, your heritage and your future…

The truck rental business, a version of equipment leasing, traces its history to shortly after WWII. The United States was experiencing vast industrial growth. During this time Americas' love of the automobile was born, and the United States blossomed into a highly mobile society. People were no longer restricted by geography to realize their dreams of better jobs and retirement locations; they could just pick up and move! It was about this time that a man named L.S. Shoen saw a need to rent trailers to families so that they could pick up and move conveniently, and without the expense of hiring full service labor. He believed that there was an economic opportunity to build a nationwide company by providing the niche service, but, like all small companies he needed capital to invest in more trailers to respond to the consumer demand. So, he decided to turn to friends and neighbors for investment capital. Shoen set up the agreements that allowed the investors to own the equipment while he managed and rented it. The investor received rental income and profited from the arrangement while Shoen received a management fee on rentals. Today, this business is known as Uhaul Corporation. UHAUL is one of the largest equipment rental businesses in the U.S. and rents their equipment to hundreds of thousands of customers every year from over 15 thousand locations. They are also the largest propane tank refilling company and ranked among the top largest self storage owner/operators, serving a very large market. But there are a number of consumer problems in the rental of trucks, namely safety, that consumers using containers are reduced while providing higher quality customer service saving time, labor and money.

Shoen wasn't the only one who thought that the Equipment Leasing business had potential. Warren Buffet, a man who through savvy investments has become one of the wealthiest men in the world, also saw the equipment leasing business to be a smart investment. Apparently, his foresight paid off. Today, Buffet's company, XTRA Corporation, is one of the largest intermodal equipment-leasing providers. With an asset base of over $2 billion dollars, a worldwide infrastructure of people and facilities, and a portfolio of service and operational support second to none, the future is very bright for Buffet's investment here. Buffet, who makes his living uncovering lucrative opportunities invested in equipment leasing because he knew there was a future in it….and guess what, he was very right. One share in Buffets' company, Berkshire Hathaway trades in the 10s of thousands of dollars. But, with Buffets addition of Bill Gates to the Board of Directors in December 2004, it made the investment shine even brighter as today they have one of the best IT systems the industry knows.

Another bit of history that is critical in understanding why equipment leasing has become such a successful business is the story about someone who revolutionized how we think about transporting goods, Malcolm McLean. McLean was in the trucking business and had an idea to place containers on ships, and move freight up and down the Eastern Seaboard. The idea behind this was that as the ship reached destinations his trucks could pick up and deliver the freight more efficiently by reducing trucks from the road and driver idle time due to piece meal loading requirements. The use of containers on ships decreased the amount of labor needed to handle freight piece meal, reduced theft and damage and trucks and drivers on the road thus maximizing operating efficiency. The idea of utilizing containers in this manner sparked another source of revenue. This source of revenue came from renting containers to customers that were not quite ready for their freight. Upon physically deploying this idea, it is reported that due to the efficiencies and economies realized by converting labor and idle truck expenses to mechanized processes, in the first year of this business his company made $5.5 million dollars. This was in the 1950's! It is also reported that he sold his company in the 1970's for an estimated $700 million dollars. Today the business is known as Maersk SeaLand Shipping Lines, the largest container shipping operation in the world.

McLean's system has continued to evolve and grow and a number of milestones have been reached. This system is used every day in cities both large and small to move freight efficiently and safely while maintaining the integrity of the contents. It is precisely this system and its proven success of established global standards, economics, security, and efficiency that we choose to grow our company. Making this choice, to build on existing success, is our competitive edge. This strategy will ensure success, profitability and long-term growth.

Turning Ideas Into Success for You!

Pursuing an Equipment Lease business opportunity begins by learning as much as you can about the industry, making contacts, and promoting your planned or actual equipment transactions. Sparecube is committed to extending and further building upon these constant opportunities that continue to ripple from this base of ideas. We are passionate about the industry and would like to share the benefits with our at our secure, sister site, sparecube.com

What to Expect trading on sparecube!

As an equipment trader you can invest in new, used, restored or one trip containers as well as wooden storage/shipping vaults. Leasing partners can invest in either International Standard Organization (ISO) steel containers, wooden storage vaults and other types of equipment for opportunities. At our sister site, sparecube.com, you have the full depth and breath of equipment trading options, including just your intent to place a buy or sale post without making a full commitment and the option to choose from over 50 standard equipment types and sizes.

Why Invest in Equipment Leasing?

As an Equipment Trader you will have total control over your investment. You will be an active manager of your equipment or other parties equipment that you manage. You will be responsible for managing, leasing, buying, and selling your equipment. At sparecube equipment traders will have full access to our information management system. One of the most important aspects of our information management system is that it is built on an open platform, requiring no software installation or upfront cost. This technology approach allows you to login to a secure location where you can manage all aspects of your equipment. There is no software require for installation. This provides you with complete freedom to login anywhere at any time to manage your equipment at home, work or play. The sparecube.com system is designed to maximize your network opportunities so you can keep your equipment loaded and rented. The system has a multitude of equipment management tools. One of the key features allows you to post, negotiate and rent your equipment based on certain parameters (price, term, location) that you enter into the system. Once your terms are met the equipment will be reserved, booked, utilized and tracked. To find out more about the system, please visit our web site and stay posted for updates to our documents.