Samudera Shipping Line, a prominent Singapore-based container shipping company, is poised to capitalise on the ongoing relocation of supply chains to Southeast Asia. The company’s feeder services, which connect Singapore with various Asian ports, are expected to see increased demand due to the region’s competitive labour costs and improving infrastructure. This shift is further supported by the US tariff policies affecting large Chinese vessels, potentially increasing the demand for smaller feeder vessels like those operated by Samudera.
Samudera Shipping Line, which handles over 30% of independent feeder-carried container volume at the Singapore hub, derives the majority of its revenue from Southeast Asia. The company is well-positioned to benefit from the region’s expanding production base, with 80% of its revenue coming from Southeast Asia and 17% from the Middle East and the Indian Subcontinent. The company’s container shipping segment is its largest, contributing to 92% of its revenue and 98% of its operating profit in 2024.
The recent US tariff war and subsequent 90-day pause have led to a surge in US-bound shipments from Asia, boosting container throughput at the Port of Singapore by 6.6% year-on-year in the first five months of 2025. This trend is expected to support Samudera’s financial performance in the first half of 2025.
Despite not operating transpacific routes, Samudera may benefit from the US’s new port-fee policy, which exempts smaller China-built vessels. This policy could lead to increased demand for feeder vessels, enhancing Samudera’s market position. With a strong net cash position forming 69% of its market cap, Samudera is trading at 0.62 times its trailing price-to-book ratio, presenting a robust financial outlook amidst global supply chain shifts.
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