Cargo companies. How do you find one in this world market and how are they profitable?
I don't know anyone in the cargo industry but it seems to be quite profitable. I was researching some stuff for my dad to ship an item from China to the US. It would cost $8000 to ship a 100kg item. I think Fed Ex would definitely profit from that. Then there are cargo guys who nickel and dime there way into the business.nnHow does one get into this cargo business and are any of you experienced in shipping large items across the pacific?
Answers
2222 points
readytoretire answered one year ago …
NAT is profitable and has a lower break even cost of hauling cargo. And they are booked up through most of 2009.
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BryanPerry answered one year ago …
I've long been a proponent of marine shipping, and Ihave four dry-bulk shippers in my 25% Cash Machine portfolio. For the sake of my subscribers, I won't provide specific names, but I can tell you that they're four of the sector's top performers with very sound fundamentals. They all possess very strong sales and earnings growth potential, which is key.
However, as promising as their long-term picture is, day rates for the shippers have sharply declined recently. These companies also run the risk of cutting dividends; it's all dependent upon how much business they locked in with long-term contracts and how much of their business is exposed to the spot market.
From my end, when you're dealing with cargo carriers and shippers, I like names with business models that are skewed to long-term contracts.
