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MarketPulse

Market Pulse – 2023 Week11

Register Free Trial [https://www.linerlytica.com/register/?utm_source=W202311] The torrent of new containership deliveries has started with MSC setting new ship size records twice last week, with more ULCS units to come in the weeks ahead. MSC has widened its gap against Maersk to 587,000 teu with the divergence even greater if idled capacity is taken into account. Maersk has 298,000 teu currently idled compared to just 68,000 teu from MSC, with the burden of idling excess capacity unevenly sha

Companies

ZIM 4Q 2022 fell 64% QoQ but guiding positive EBIT ahead

ZIM has reported a sharp drop in net profits in the 4th quarter of 2022, down 64% QoQ and 76% YoY. Zim’s earnings decline is larger than its peers with its 4Q 2022 EBIT margin the lowest amongst the main carriers that have reported their results so far, apart from intra-regional carriers. ZIM guided $100m- $500m EBIT for 2023 which remains in the high end relative to the company’s pre-2020 EBIT performance. Over the 10 year period from 2009 to 2019, ZIM recorded cumulative EBIT losses totallin

Companies

Wan Hai 4Q 2022 fell into red

Wan Hai provided head line numbers for FY2022 after market close today (13 March). The 4Q net earnings fell into red as per our computation

Companies

Taiwanese Monthly Revenue: February performance hit by lower rates and volumes

Yang Ming and Wan Hai have also reported their February revenue after Friday (10 March) close, following Evergreen's report a day before. The trend is similar to that of Evergreen's e.g. being down 22% MoM and 69% YoY. The 22% February drop is larger than CCFI's 8% MoM drop in February, with volumes falling sharply during the month.

Services

MSC introduces 13,000 teu ships on new FE-Med Dragon service

MSC has launched its new Far East-Med Dragon service on 13 March 2023 with the 13,102 teu MSC PERLE at Shanghai. The Dragon service replaces the former 2M AE-20/Dragon service that was operated in partnership with Maersk that was suspended in April 20202. The new service will be operated independently by MSC and calls at Shanghai, Ningbo, Yantian, Singapore, Ashdod, Naples, La Spezia, Genoa, Fos, Gioia Tauro, King Abdullah, Singapore, Shanghai. The service will turn 9 weeks and will deploy 9

Services

TS Lines add Asia Indian Subcontinent 2 (AIS2) service

TS Lines (TSL)has added a new Asia Indian Subcontinent 2 (AIS2) service after it joined Sinokor and Global Feeder Service (GFS) on their jointly operated Sinokor India Service 2 (SIS 2) / China Sub Continent (CSC) service. TS Lines replaced SeaLead as a partner on this service after the latter pulled out from the service in December 2022. The first TSL vessel to join the service is the 4,380 teu TS SINGAPORE that joined the service on 10 March 2023 at Busan. The SIS2/CSC/AIS2 service calls at

Services

ONE launches Israel Express (ILX) service

ONE has introduced a new Israel Express (ILX) shuttle service that will connect Damietta, Haifa, Ashdod, Damietta. The service is scheduled to start at Damietta on 29 March 2023 with the 1,118 teu MITO that has been fixed for 6-8 months at a daily rate of $13,250. MITO previously was deployed in Unifeeder's Intra-North Europe service.

Services

Hapag Lloyd to split Gulf Caribbean Service (GCS)

Hapag-Lloyd is splitting its Gulf Caribbean Service (GCS) service, which connects Houston with Mexico, Central America and Caribbean, into a North and South Loop. The North Loop (GCS) will call Houston, Altamira, Veracruz, Puerto Barrios, Puerto Cortes, Caucedo, Kingston, Houston on weekly basis with 3 vessels, beginning with the 2,506 teu MAIRA at Houston on 13 April 2023 followed by the 3,237 teu ANTIBES EXPRESS and 2,357 teu MINERVA. ONE will take slot under its service CX5. The South Loop

Companies

Yang Ming 4Q22 earnings dropped 76% YoY

Yang Ming provided headline FY2022 results overnight (10 Mar) where earnings attributable to shareholders during 4Q 2022 dropped 76% YoY and 71% QoQ, much steeper drop than most the peers that have reported so far.

Companies

Evergreen reported 63% YoY fall in Jan+Feb revenue

Yang Ming reported this morning (10th Mar) FY2022 earnings plus large dividend pay-out. But what may have gone unnoticed today is that Evergreen also reported Feb 2023 top line overnight (9 Mar), being the earliest of any container liner financial reports. Evergreen's Feb revenue in USD terms fell 68% YoY and 28% MoM. Combining January and February, the two-month aggregate revenue fell 63% YoY. As the liners did not make over 60% operating profit margin in 1Q 2022, over 60% fall in revenue means

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