Total 219 Posts
NYK and K-Line also reported beginning of this week where both operators guided the 91-92% YoY drop in the earnings from their container liner activities, in line with what MOL guided. Japanese shipping companies have the longest track record in guiding forward container liner earnings, dating back to 2005-2007. Of the 16 years where all three Japanese shipping companies have guided container liner earnings, the actual earnings beat guidance in 8 years. Their actual earnings tend to track bel
Maersk reported result before market today (4 May) where earnings fell hard as expected but $2.6bn at bottom line is still better than any quarters before 2021. Full year guidance stay unchanged, suggesting the EBIT for the next 3 quarters will range between negative $561mn or $2,4bn, which is a very wide range comparing to Maersk's track record before 2021. $2.4bn for 3 quarters would still be very good earnings while negative $561mn would be the worst ever. Maersk Line's unit revenue (total
COSCO provided full 1Q results after market on Friday (28 April) in addition to the EBIT, Net Profit figures already provided in an alert on 4 April. In the new disclosure, operating expenses in A-share accounting fell by 41% YoY while the volume fell by only 12% YoY. In our estimate, COSCO slot costs (annualised opex/capacity) fell 47% YoY in 1Q23. We will compare COSCO’s OPEX with the industry peers when more peers’ figures are available.
ONE reported its 4Q earnings for fiscal year 2022, which is 1Q23 on calendar year, during lunch break last Friday (28 Apr) with net profit down 56% QoQ and 76% YoY. Though, such quarterly results were still better than any quarter before 2021. The average unit revenue earned by ONE fell just 38% YoY whereas CCFI dropped 68% YoY as ONE likely benefited from higher contract mix and more diversified route mix than the CCFI, which is based on all China origin cargoes. ONE management has not prov
UPS share price dropped by 10% overnight (Apr 26) on bearish management guidance particularly on the domestic package, which offers a read-through to the demand for container shipping. On what may indicate the latest development of US retail sales, UPS's domestic package volume dropped 5% YoY in 1Q 2023, an acceleration from the 4% YoY drop in the previous quarter. Moreover, management in an CNBC interview suggested that the decline in the domestic package volume accelerated markedly during Ma
K&N reported yesterday (25thApr). The YoY drop in revenue, profit and volume in the group results, and the sea and air segment are no surprises. But the sequential rebound in EBIT/GP conversion rate for Sea Logistics was exceptional given the deterioration of the container shipping market during 1Q 2023. One reason that we figure was that the drop in the freight rates in contracts between K&N and the liners may have come steeper than the drop in spot rates that K&N is selling to the market durin
Matson provided earning alert for 1Q 2023 after US market close yesterday (19 Apr). Net profit at $29.3m to $33.8m, suggesting 60% QoQ and 91% YoY drop, which should be expected by the capital market. The QoQ growth in volume particularly for the China route was a surprise given the China service capacity during 4Q 2022 was much larger than 1Q 2023. Matson is earning premium freight rates relative to the going spot rates and it has exposure to the relatively more stable cabotage businesses, whic
Taiwanese liners’ March revenue (in USD) rebounded 14% MoM versus CCFI’s continue decline. YoY comparison is still negative by 66%. The sequentially rebound is likely volume driven, a normal seasonal pattern from Feb to Mar.
OOIL's 1Q 2023 shipping top line and breakdowns came out after Asian market on Thursday (6 Apr), being the first container liner to provide 1Q 2023 top line report. Revenue dropped 31% QoQ on average freight rate fall, which is in line with CCFI's 33% fall during the same period. Overall 1Q 2023 volume was flat QoQ. Transpacific volume being up 11% QoQ suggested OOCL, the shipping liner of OOIL, may have gained market share during past quarter as the US import from Asia was down during 1Q 202
COSCO reported after Hong Kong market close last Thursday (30 Mar). COSCO’s liner EBIT dropped only 32% YoY, which is much better most of the liner peers except for Maersk and Hapag Lloyd which have more favorable mix e.g. 2022-2023 contracts and exposure to Trans-Atlantic trade. Part of the reason that COSCO outperform probably was due to the large provision made during 4Q 2021, which raised COSCO’s non-cash slot costs and hence the payables as reflected in the work capital balance.