Singamas Expects Container Prices to Rise on Acute Shortage

July 19- Singamas Container Holdings Ltd., the world's second-largest of the shipping boxes, said prices will rise by up to 9 percent by the end of the year as he battled a shipping container amid recovery in world trade.
The price of a box 20 feet level already 50 percent this year and could rise to about 3,000 dollars as soon as December, Chief Executive Teo Siong Seng said in an interview with Singapore in July 16. He declined to elaborate on the company's pricing plans for their own.
Tew said the lack of global container may continue for a long period up to two years the makers of box plants to reactivate the idled during the period of global recession. Rejected the shipping lines and freight rates that have been raised this year because of the lack of boxes.
"The market is very tight at the moment," said Um Kyung-A, an analyst at Shinyoung Securities in Seoul. "Shipping lines and empty containers back from Europe and the United States to meet demand in Asia for export."
Globally, there may be a shortage of containers of up to four million, said Teo. The square fleet shrank in all parts of the world 4 percent last year, according to Textainer Holdings Limited, the world's largest container lessor.
Tew said Singamas just returned from 12 Chinese factories to "required" capabilities in the past two months after recruitment of new workers from January January. In the past year's production fell 85 percent after it closed factories and cut staff and dropped to the first annual loss since 1996.
"We did not realize that the shortage will be very severe," said Teo. "However, it is time we were able to command a healthy at a reasonable price."
Container houses
The company started operation of empty containers in the home, complete with electrical appliances and bathroom fittings, and during the recession to compensate for the decline in demand from shipping lines.
Tew said the outcome of Singamas production would exceed last year's 86 600 20-foot containers, without giving details. The company said it expects to make a profit in the first half of this year, compared with a loss in the previous year, on June 21 statement, the Hong Kong Stock Exchange.
Has gained boxmaker 32 percent in trading Hong Kong this year, compared with a low 7.5 percent in the Hang Seng Index. All six analysts followed by Bloomberg in the past 12 months recommends that investors "buy" a company based in Hong Kong shares.
Rose Hong Kong dollar-denominated shares of marine China International Container (Group) Corporation, the largest in the world in box maker, 6.2 per cent this year in Shenzhen.
Shipping lines, including China Cosco Holdings, China Shipping Container Lines Co., the nation's two largest, and imposed additional surcharges this year, pointing to a shortage of funds.
International Monetary Fund earlier this month raised its forecast for global economic growth this year, reflecting a stronger than expected half of the first. The global economy will expand 4.6 percent in 2010, the largest increase since 2007, compared with the expectations of April from 4.2 percent