THE second biggest container manufacturer, Hong Kong's Singamas Container Holdings, posted a 43 per cent year-on-year profit decline in 2013 to US$34.3 million, drawn on revenues of $1.28 billion, down 16.5 per cent.
Soft demand for new containers, due to lower growth in global trade and the continuously depressed liner market was aggravated by stockpiling of new containers during the first half of the year, said the company.
"With the modest demand, a slow recovering global economy and excess supply of containers in the low season, the traditional peak season in the second half year failed to materialise," said Singamas chairman Teo Siong Seng said.
The company will benefit from the closure of its factories and that of its bigger competitor, China International Marine Containers (CIMC), for two months during the Lunar New Year.
"We are more optimistic about the market this year as new orders have pushed up the container [average selling] price to US$2,300 from below $2,000 last year," Mr Teo said.
Source : HKSG.