Global equipment pool to decline this year

Mawani (Saudi Ports Authority) and Saudi Global Ports (SGP), which is a joint venture between the Saudi Public Investment Fund (PIF), Singapore’s PSA International, and the Al Balagaa Group, are to invest US$266M in a new logistics park at King Abdulaziz Port in Dammam.

Hapag-Lloyd, which is leading the liner shipping industry when it comes to fitting smart devices to its dry freight containers, is pressing ahead with its installation programme. It expects the whole of its 1.6M TEU owned fleet to be smart early in 2024. Already more than 80% of its reefer containers are fitted with devices that in addition to tracking the container’s position, monitor temperature and humidity levels inside the equipment.

After the surge in output in 2021, the past 18 months have proved very challenging for manufacturers of containers, and particularly of standard dry freight boxes. But the output of specials has been rather better and, while accounting for only a small proportion of the global fleet, offers some optimism for the future.

Symcon Industries Private Ltd, which started manufacturing ISO maritime containers in Ahmedabad, western India, just over 12 months ago, has delivered its first batch of containers destined for overseas buyers to Singapore-based Econship.

This year looks as if it will be the quietest year for container production since 2009, with the output of dry freight standard, dry freight specials, reefer and tank containers unlikely to exceed 1.3M TEU. But there are hopes that 2024 and 2025 will be much better.

Falling demand and competitive start-ups from overseas are just some of the challenges that China’s box builders need to confront.