Container manufacturer Singamas reports a revenue decrease of close to 20% in 2016

Singamas, one of the world’s largest manufacturers of containers, reported that its revenues in 2016 declined by 18.6% to $916m. 96% of its revenues were generated from manufacturing operations.

The result came on the back of lacklustre market demand for new containers, which Singamas attributed to “a weak global economy and decline in exports, as well as market uncertainties created by the major mergers and acquisitions by a number of shipping companies and container leasing operators”.

Its average selling price (ASP) for a 20 ft dry container fell by 18.6% to $1,457, thanks to a fall in the price of corten steel and “generally weak market demand”. Overall manufactured volumes amounted to 523,785 TEUs, down by 0.6% year-on-year, whiles sales volumes were 543,708 TEUs, an increase of 4.4%. Singamas asserted that it captured a greater share of the dry freight container market.

Looking forward, Singamas noted that “a changing environment that is favourable for steel and petroleum production could help support a rise in the ASP of dry freight containers and increase demand for offshore containers respectively.”

Source: Singamas