China International Marine Containers (CIMC), the world’s largest container manufacturer, said that its factories are full with orders until at least the end of March, as the Red Sea crisis saw rocketing demand for containers.
The Chinese state-owned company made this disclosure in a filing to the Shenzhen Stock Exchange, revealing that its 2024 net profit is set to rise by six- to eight-fold from 2023, to between US$340 million and US$480 million.
Market estimates indicate that for the final quarter of 2024, CIMC booked a net profit of US$92 million to US$229 million, reversing a US$104.5 million net loss in the same period of 2023.
Explaining the significant jump in its earnings, CIMC said: “The container shipping market rebounded cyclically in 2024, and due to factors such as the Red Sea crisis that lengthened sailing distances, there was higher demand for new containers. The production and sales of standard dry containers hit a record high, and thus, our revenue and net profit grew a lot.
“Our current orderbook is significantly better than the same period last year, and the orders on hand have been scheduled into the first quarter of 2025.”
CIMC will not disclose 2024 production number until it releases its full-year accounts at the end of March, but output of dry containers in the first three quarters of 2024 soared five-fold from the year-ago period, to almost 2.49 million TEU.
Despite uncertainties surrounding the container shipping market in 2025, CIMC’s management remains positive.
The management said: “With growing international trade, global container holdings are also expected to rise. Diversification of supply chains, and increased TEU-mile will generate demand. At the same time, the imbalance of container trade flows and the replacement of aged containers will support demand.”
Alison Koo
Asia Correspondent
