Gulf-related demand boost for box equipment, says CIMC boss
The US/Israel-Iran war will support short-term demand for containers, as shipping lines adjust to the ...
By Alison Koo
China’s container production reached an all-time high of 8.1m teu in 2024, as demand surged due to the Red Sea crisis.
China Container Industry Association vice-chairman Li Jun revealed the figures at the Intermodal Asia conference yesterday.
In comparison with last year’s 8.1m teu, 2023 saw just 2.2m teu of container output as demand corrected following the Covid-induced boom.
Mr Li said dry containers were the most manufactured type, accounting for 91.3% of China’s output last year, while reefers made up nearly 4% and specialised boxes, such as open-top types for rail freight and tank containers, made up 0.7% and 0.6%, respectively.
The association’s report shows that China continues to command the highest global market share in container manufacturing, accounting for 96% of output worldwide, with factories mainly situated in the Yangtze and Pearl river delta regions, with China International Marine Containers, Cosco unit Shanghai Universal Logistics Equipment, CXIC Group, and Singamas the major manufacturers.
While an outlook for container production this year was not mentioned, Singamas, which released its 2024 results on Tuesday, expects another correction in demand.
Chairman and CEO Teo Siong Seng said: “The demand for dry freight containers is anticipated to dampen in the coming year, due partly to overproduction in 2024.
“Geopolitical tensions between major economies are expected to lead to a new round of import tariffs that may affect global trade. Given the many developments that could hinder dry freight container demand, the outlook in the coming years is uncertain.”
As the world’s fourth-largest container producer, Singamas saw net profit rise 69%, to $38.07m, while revenue was up 52%, to $582.8m. Sales of dry containers more than doubled, to 220,000 teu.
Mr Teo said that besides the Red Sea crisis, container demand had been “powered by one-off factors in 2024”, such as restocking activities in the US, pre- the presidential election, and threats of industrial action by US east coast port workers in January 2025.
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