Tag Archives: China

asia economic growth shipping investment

Asian Economic Growth Makes Shipping an Appealing Investment

Chinese reforms have the potential to boost private consumption and transform the Asian economy. In doing so, the economic momentum will ignite GDP in the region, and make growth more sustainable.

The Economic Outlook For Asia:

Albeit nowhere near the 10 percent growth experienced by China in previous years, steady growth is still the outlook for Asia, particularly with China’s One Belt, One Road initiative steadily moving forward. According to analysts, Gross Domestic Product (GDP) increased 6.1 percent year-on-year in Q4 2015 and the growth is expected to continue throughout 2016. This strong growth is thanks to two important contributors:

  1. Exports of electronics to the United States and European Union, which have consistently gained momentum since 2013-2014.
  2. Solid domestic demand across much of Asia. In Japan for example, an increase in wealth has supported the growth of private consumption.

Asia’s Undisputed Dominance in Shipping:

With a large number of the world’s busiest shipping ports, such as Singapore, Shanghai, and Busan, located in Asia, the continents influence on the global shipping industry is irrefutable. To give you an example of the magnitude of their contribution to global economic growth, the port of Shanghai alone accommodates more than 32 million TEU each year.

asia shipping influence irrefutable

With some of the world’s busiest shipping ports located in Asia, the continents influence on global shipping is irrefutable.

Ports and terminals are not the only place Asian shipping companies have a foothold. Despite partnerships and alliances from leading container shipping lines outside the continent, Asia-based companies, such as CSCL, OOCL, and Hanjin are remaining competitive despite facing constant economic and industry-related challenges.

The Investment Climate in Asia:

With regards to the region’s financial stability, there is increasing risk for investors who continue to pursue traditional investments. Although for the moment global stock prices have appear to have stabilized, they are still an area of concern and risk.

In contrast to traditional options, Asia’s well-established alternative investments are growing increasingly appealing, and are demonstrating that they are a great investment for the world’s more cautious investors.

Sectors that promote growth in the region are seen as the most obvious choice. Shipping for example offers investors the opportunity to invest in port infrastructure and also in equipment, such as ship-to-shore cranes and shipping container investments.

asia alternative investments appeal to investors

Asia’s alternative investments are growing increasingly appealing and are proving to be a great investment for cautious investors.

Investing in Asia’s Growth Industries:

Potential growth in Asia is still much higher than in other developed regions. For many economies the quality of specialization and the sophistication of industry, as well as strong exports, suggests that the investment community can expect medium-term growth for Asia in 2016. Moreover, the stronger growth experienced in advanced economies such as the United States, in addition to more competitive exchange rates, will help drive Asian exports ever-higher. This will provide a great experience for investors and strengthen confidence in the shipping industry and the region.

China’s ambitious reform agenda, which has placed emphasis on private consumption, working in combination with some key investments made by the world’s leading shipping companies will help accelerate the re-balancing of the global economy. That said, private consumption (as a share of GDP) in Asia is expected to rise over the medium term, reaching nearly 40 percent of GDP, and deliver more sustainable growth to investors’ portfolios.

pacific tycoon container investments are great investment

3 Things That Make Pacific Tycoon a Great Investment

When investors are seeking new investment and business opportunities they carefully vet each option, searching for obvious and hidden potential. In doing so, investment-seekers will carefully considered the factors that will contribute to the option’s ongoing profitability. Among other things, this includes the geographical location of the business/investing opportunity, partners in the investment, and the company’s vision, financial outlook and plan for the future.

With regards to this investor criteria (above), Pacific Tycoon offers opportunities for investment that benefit from 1) the company’s strategic location in Hong Kong (Asia), 2) its long-standing industry partnerships, and 3) Pacific Tycoon’s steadfast plan for remaining competitive and profitable in the container shipping sector; for years to come.

1. Location

In an effort to broaden the reach of their portfolios, a growing number of affluent and savvy investors are considering international investment opportunities, that are profiting from world trade and capitalizing on strong global economic growth.

Over the last few years, emerging markets like Asia have become an increasingly appealing to investors.

hong kong container port

Hong Kong

Dominated by trade in containerised manufactured products, the port of Hong Kong is an economic gateway to mainland China. Regarded as one of the busiest container ports in the world, Hong Kong is the home port for Pacific Tycoon’s container fleet.

Dominated by containerised trade, the port of Hong Kong is an economic gateway to mainland China. Click To Tweet

With corporate offices in Hong Kong, Pacific Tycoon’s ideal location provides the company’s analysts with insights and opportunities in the Asian and international shipping industry. These opportunities translate into a steady demand for Pacific Tycoon’s containers.

2. Partners

From strategic shipping alliances to contributions from shipping container investors, the worldwide container shipping sector is building a prosperous future, with the help of industry partnerships.

Shipping Companies

Last year (2014) the international shipping industry experienced the formation of a number of key container shipping partnerships, including the 2M alliance and Ocean 3. These new slot-sharing agreements will allow leading container shipping lines to pool their vessel resources to lower operational costs and increase profitability.

Aside from alliances and mergers, shipping giants like A.P. Moller-Maersk are making investments to improve port and terminal facilities all over the world. This not only ensures their own continued success, but also the steady demand for a supply of shipping containers to drive the world’s economic growth.

The container shipping sector has built a prosperous future with the help of industry partnerships. Click To Tweet

Investors

Both institutional and private investors have made contributions to the recovery and growth of the global shipping industry. For one, shipping container investments have helped container shipping lines reduce their overhead costs, by partnering with them to eliminate the costs associated with owning and maintaining a fleet of millions of containers.

container shipping partners

The fact of the matter is that since the introduction of the global financial crisis in 2008-2009, much of the investment community have moved away from traditional investing and are seeking help to invest in alternative investments, like those offered in the shipping industry. In doing so, private investors are funding the purchase of containers, shipping equipment – like ship-to-shore cranes, and container vessels.

3. Vision

It is important for investors to see that a company has genuine reasons to be positive about the outlook for the future of the industry. Pacific Tycoon has seen and survived the global financial crisis that erupted in 2008-2009 and in doing so, has built a stronger business model that focuses on being there when, and where container shipping customers need them. Building better relationships, builds a better business.

Globalism began as a vision of a world with free trade, shared prosperity, and open borders. These are good, even noble things to aim for. – Deepak Chopra

Pacific Tycoon has demonstrated that it has the vision to continue to deliver prosperity to investors through container leasing investments, as well as containers to shipping ports and terminals around the world. Decades of experience in the maritime shipping industry gives Pacific Tycoon the insight the company needs to determine the economic regions with the greatest potential for growth and revenues.

container shipping vision

To capitalize on these emerging opportunities, Pacific Tycoon works closely with industry partners toward building and maintain long-term relationships that will sustain mutual profitability and encourage strong economic growth in established and emerging marketplaces.

Building better relationships, builds a better business. Click To Tweet

Final Thoughts

Like other profitable container leasing companies, Pacific Tycoon has silenced shipping industry critics by evolving with the changing maritime sector, and has capitalized on opportunities in developed, expanding and emerging markets, which in turn; has allowed the company to grow its international presence and business partnerships.