News / More specialised containers the order of the day as CSD profits tumble

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Cosco Shipping Development (CSD), holding company of container maker Dong Fang International and box lessor Florens, said it intends to develop more specialised containers, such as those to carry automobiles, in response to global market uncertainty.

The news came after CSD revealed its 2023 net profit had declined 64% from 2022, to $198.8m, as container sales fell 38% year on year, to 590,600 teu. Revenue dropped 39%, to $2.19bn.

Turnover from CSD’s container manufacturing and leasing businesses fell 49% and 9%, to $1.48bn and $700.45m, respectively.

The group’s 40ft automobile-carrying containers, the first in China to carry four vehicles at a time, debuted in December. They are 4.05m high, 1.16m taller than a standard 40ft container, while length and width are the same.

Besides automobiles, Dong Fang’s specialised containers include those meant for energy storage.

In 2023, revenue from the group’s specialised container manufacturing business increased 535% year on year, and there were orders for nearly 1,000 energy storage boxes.

CSD said: “We will make more effort in the research and development of special containers to accurately meet the needs of customers……and strengthen industry cooperation to jointly drive the development of the emerging industries, such as special equipment, cold chain, energy storage and new materials.”

But the firm expressed optimism that container demand would recover this year: “In 2024, the global economy will continue to face challenges due to the interplay of multiple factors. The world economy is expected to remain on a medium-to-low growth track, inflation in major economies such as Europe and the US will tend to ease, and China’s economic growth will be full of resilience.”