bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Jing Yang

Singamas Container Holdings, the world's second-largest container manufacturer, is expecting a surge in orders as it reported a sharp fall in profit for the first half.
Net profit plunged 51.7 per cent to US$13.28 million for the six months to June from US$27.49 million a year earlier because of unstable demand.
The company said an anti-dumping case it was facing in the United States had no merit.
"New containers on the ground in China are about 0.5 million [teu], equivalent to two months' production, which is a fairly low level. I'm cautiously optimistic about a rush [for new orders] soon," chairman and chief executive Teo Siong Seng said at a media briefing yesterday.
The bulk of containers currently in service are about nine to 10 years old and they will need to be replaced in one to two years.
Singamas has all its production facilities on the mainland. Apart from manufacturing containers, it is also a major operator of container depots and terminals in the Asia-Pacific region.

	Many of our US customers say our products are superior to those made in the

	US TEO SIONG SENG, SINGAMAS CONTAINER
"Shippers are concerned about being offered a leaking container when sending out the cargo, as shipping lines have been trying to extend the life of a container as much as they can," said Teo.
Teo is also the managing director of Singapore's Pacific International Lines, the controlling shareholder of Singamas and the world's 16th-largest container shipping line by capacity.
The normal life of a container is 15 years, if it can be refurbished in the 10th year. The cost to refurbish a container is US$1,000, almost half the price of a new one.
Most carriers opt for the cheaper solution of minimum maintenance, which reduces the container's life to 12 to 13 years.
The last rush to order new containers occurred between 2003 and 2008, which meant a mass demand for replacements was imminent, Teo said.
Another driver for demand is the surge in delivery of new container ships, which is expected to culminate this year or next.
Singamas said the US government's anti-dumping investigation of its product was "unfair".
In May, the US began an investigation over claims 53-foot dry freight containers imported from China were being sold below production cost. A decision is expected later this year.
Teo said if additional tariffs were imposed by the US International Trade Commission in its anti-dumping and countervailing duty investigation, the company would be less penalised than its bigger Shenzhen-based rival China International Marine Containers because of its non-Chinese ownership.
"Many of our US customers say our products are superior to those made in the US," he said.
"Some customers are still talking to us about placing additional orders despite the pending verdict."
The 53-foot containers contributed only a fraction of Singamas' total revenue and the probe had no material financial impact on the company, Teo said.
Almost all the 53-foot containers, primarily used in North America for domestic rail, road or intermodal transport, are made by CIMC and Singamas.
Shares of Singamas yesterday closed unchanged at HK$1.58.


Singamas braces for big rush in container orders

Singamas has its manufacturing facilities all on the mainland. Photo: Charlotte So

Business

Companies

Manufacturer looks to expected demand for replacement of ageing product in market after profit plunges 51.7 per cent in the first half


Singamas Container Holdings, the world's second-largest container manufacturer, is expecting a surge in orders as it reported a sharp fall in profit for the first half.
