<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 16, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Singamas sees container demand reviving
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(HONG KONG) Singamas Container Holdings Ltd, the world's second-biggest maker of cargo boxes, said it has received more customers enquiries, indicating that demand may be recovering after it plunged last year.
The decline in Shanghai port's container traffic appears to have slowed and Singapore showed increased volumes in March from a month ago, Teo Siong Seng, chief executive officer of Singamas, said yesterday. Singapore and Shanghai are the world's two busiest container ports.
Singamas may be indicating that global trade, set to shrink for the first time in almost three decades this year, is showing signs of revival as governments worldwide spend trillions to support economies.
China's marine cargo traffic rose for the first time this year in March while a drop in container volumes slowed, the Ministry of Transport said on April 8.
'Confidence seems to be returning, and going forward we will see a gradual return of orders,' Mr Teo said in Hong Kong after the company posted 2008 results. Shipping lines have said they want to raise rates as some demand returns, he said.
Singamas gained 24 per cent to close at 60 Hong Kong cents in Hong Kong trading after the release of the results. The stock has advanced 65 per cent this year, compared with a 8.9 per cent climb on the benchmark Hang Seng Index.
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</TD></TR></TBODY></TABLE>Operating profit last year rose 64 per cent to US$72.9 million because of lower costs and demand for higher-margin products like refrigerated containers and tank containers, the company said yesterday.
Net income slumped 87 per cent partly because of a one-time charge for unwinding derivatives, it said.
The average selling price of a 20-foot standard container increased 18 per cent last year to US$2,262 and that of tank containers rose 16 per cent to US$30,600, Singamas said in its statement. For 2009, the price may be about US$2,100 to US$2,200, Mr Teo said, without giving details.
The company, which has cut staff by more than a third, yesterday said that it cut production capacity to a maximum of 700,000 units this year, from 1.25 million in 2008. Singamas has a global market share of 19 per cent.
Singapore ports handled 2.19 million 20-foot containers in March, 19 per cent more than in February, according to the Maritime and Port Authority of Singapore's website. -- Bloomberg
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Singamas sees container demand reviving
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(HONG KONG) Singamas Container Holdings Ltd, the world's second-biggest maker of cargo boxes, said it has received more customers enquiries, indicating that demand may be recovering after it plunged last year.
The decline in Shanghai port's container traffic appears to have slowed and Singapore showed increased volumes in March from a month ago, Teo Siong Seng, chief executive officer of Singamas, said yesterday. Singapore and Shanghai are the world's two busiest container ports.
Singamas may be indicating that global trade, set to shrink for the first time in almost three decades this year, is showing signs of revival as governments worldwide spend trillions to support economies.
China's marine cargo traffic rose for the first time this year in March while a drop in container volumes slowed, the Ministry of Transport said on April 8.
'Confidence seems to be returning, and going forward we will see a gradual return of orders,' Mr Teo said in Hong Kong after the company posted 2008 results. Shipping lines have said they want to raise rates as some demand returns, he said.
Singamas gained 24 per cent to close at 60 Hong Kong cents in Hong Kong trading after the release of the results. The stock has advanced 65 per cent this year, compared with a 8.9 per cent climb on the benchmark Hang Seng Index.
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Net income slumped 87 per cent partly because of a one-time charge for unwinding derivatives, it said.
The average selling price of a 20-foot standard container increased 18 per cent last year to US$2,262 and that of tank containers rose 16 per cent to US$30,600, Singamas said in its statement. For 2009, the price may be about US$2,100 to US$2,200, Mr Teo said, without giving details.
The company, which has cut staff by more than a third, yesterday said that it cut production capacity to a maximum of 700,000 units this year, from 1.25 million in 2008. Singamas has a global market share of 19 per cent.
Singapore ports handled 2.19 million 20-foot containers in March, 19 per cent more than in February, according to the Maritime and Port Authority of Singapore's website. -- Bloomberg
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