Following the publication of their results for the first half of 2025, listed container manufacturers now expect demand for new containers to be subdued until the end of the year. One of the reasons for this is the US tariff policy.
Singamas, the fourth-largest container manufacturer, has adjusted its forecast. While Singamas’ revenue increased by 4% to $251.63 million compared to the first half of 2024, net profit fell by 13% to $14.97 million due to higher costs. New container sales amounted to 84,000 TEU (compared to 93,000 TEU in the first half of 2024). Average selling prices fell from $1,918 in the prior-year period to $1,845 per standard container
Teo Siong Seng, Chairman and CEO of Singamas, explained that the challenges of the first six months of the year would continue until the end of the year. High order volumes in 2024 and falling freight rates on long-haul routes are likely to dampen demand for new containers.
“In addition, the US government’s protectionist trade policy caused uncertainty in the market,” says Teo Siong Seng. “Although the duty-free period boosted export demand in the second quarter, freight rates and container prices remained low due to overcapacity and intense industry competition. We expect export volumes to decline in the second half of the year, meaning that demand for containers is likely to be weak. However, with raw material costs falling at the same time, industry players will take advantage of this development by continuing to control costs in order to secure margins and profitability.”
Optimism at CSD
Cosco Shipping Development (CSD), the second largest container manufacturer, recorded a 4% increase in revenue to 12.16 billion yuan ($1.7 billion) compared to the first half of 2024. Net profit increased by 15% to 1.04 billion yuan ($145.17 million). Container sales increased by 14% to 845,700 TEU compared to the first half of 2024. Accordingly, revenue from container production rose by 7% to 8.49 billion yuan ($1.19 billion).
CSD, whose business units include ship and container leasing, was optimistic and explained that record deliveries of newbuildings will increase demand for new containers, while old equipment will need to be replaced.
Customs policy causes uncertainty
China International Marine Containers (CIMC), the largest container manufacturer, reported a 4% year-on-year decline in revenue to 76.09 billion yuan ($10.6 billion) in the first half of 2025. Thanks to reduced costs, net profit increased by 26% to 1.76 billion yuan ($246.36 million).
While sales of dry containers fell from 1.38 million TEU in the first half of 2024 to 1.13 million TEU, reefer sales rose to 92,000 TEU, more than double the 44,700 TEU in the first half of 2024. CIMC attributed the increased demand for reefer containers to robust South American fruit exports to Asia and high cold chain freight rates.
However, CIMC also expects demand for containers to remain weak for the rest of the year. The company explained: “Uncertainty over US tariff policy will continue to fuel concerns about global economic growth, which in turn will impact demand for containers in the global container shipping market in the short term.” (PL)
