The shipping business around the world is slow. Most of the shipping lines and non-vessel operating common carriers who own thousands of containers want to reduce their inventory of containers to reduce their current as well as expected losses.
My company in Karachi, Pakistan is based on this ideology. We want to purchase container inventory from different shipping companies and sell them to local purchasers in Karachi, Pakistan. We have multiple buyers with a very high demand for shipping containers because of some major projects like the China Pakistan Economic Corridor (CPEC) going on. We also have buyers of container boxes in the transport and construction industries.
In order to maximize the profit from trading of containers, we are looking to combine one-way booking of cargo from Canada, USA and Europe to Pakistan and then to sell the containers upon arrival in Karachi. In this way, we can declare the containers as being imported as SOC (Shipper Own Container) and will not have to pay any duty.
The revenue streams and cost of doing this for 1x40' will approximately be as below:
- Export freight vs cost of shipping (Slot, Terminal/port charges etc) - this component will be break even or in minor profit
- Import charges at Karachi Port - this will be approximately USD 100 - per 40' container which will be purely a profit
- Container sale in Karachi - this will be approximately USD 100 per 40' container
In terms of volume, in a month there is a minimum demand of almost 50x40' containers. This will give a monthly profit of about (50 containers x USD 200 per 40') = USD 10,000.
This profit is only for the 40' containers. We expect almost the same amount of profit if we combine this with 40' HC and 20' containers as they have a similar demand.
The capital will be invested gradually and can be started at a minimum of 5 containers of 40'HC which would require a minimum investment of USD 10,000 and the expected return would be USD 1,000. We can increase the volume slowly and gradually.
The transit time of shipping the container to Karachi and getting it released from the importer will be the actual time the amount of capital will be invested.