Total 226 Posts
ONE reported 3Q 2023 results where the accelerating sequential fall in earnings during the past quarter may be a surprise to the market. Unit OPEX fell 5% but unit revenue fell 14%. Nevertheless EBIT has come to a level ordinary for periods before 2020.
Being the first liner to report 3Q earnings, Matson's 3Q earnings (out on 23 Oct) showed sequential improvement from the 2Q results: container shipping earnings were up 37-43% QoQ on 4% higher container volume, suggesting over 30% QoQ increase in earnings coming from rise in average freight rates. Most of Matson's operation are done on short term contracts or spot freight rates. Matson maintains two services in its China-USWC trade since 4Q of 2022. It has blanked 3 sailings in 1Q 2023 and 2 s
Yang Ming and Wan Hai also reported their September revenue. Including Evergreen, all three Taiwanese container liners reported MoM decline in September. For the quarter, 3Q 2023, and three liners in aggregate, total revenue was up 2% QoQ where EMC's on going consolidation of unlisted assets may have played a factor. For the liners already reported, OOIL, Yang Ming and Wan Hai reported QoQ decline in revenue during 3Q 2023. For the second year in a row, the peak season has not brought about any
OOIL’s top line breakdown for 3Q 2023 saw total revenue slip by 11% QoQ and 65% YoY driven primarily by the drop in average freight rates. The fall is larger than market forecasts with OOIL’s average freight rates falling by more than CCFI levels on a QoQ basis, even after excluding the impact of the sharp fall in Transatlantic rates which is outside of the CCFI scope. OOIL’s Transpacific freight rates fell by 2% despite the rate increases in July and August. OOIL’s 3Q23 EBIT is expected to rec
Liners have as much cash as the value of the vessels on their balance sheet, after the last 3 years of excess super normal earnings. As at the end of 2Q 2023, the 8 major liners that published their balance sheet data have $93bn cash against $106bn PP&E and RoU (Right-of-Use) assets owned and leased, which consists mainly of ships and containers. Cosco, Evergreen, HMM and Yang Ming has higher cash holdings than their PP&E and RoU asset values.
Taiwanese liners’ August revenue in NTD moved up 6% MoM, but revenue in USD moved up less at 4% MoM. In either currency, the rebound is better than CCFI on likely sequential volume growth. Since hitting the bottom in February, these liners’ monthly revenue has rebounded between 3%-27% with EMC leading due to its ongoing consolidation of the unlisted ship owning entities highlighted by the acquisition of the privately owned Evergreen Marine (Singapore) (EMS) for $780m on 19 June 2023, in a landm
MSC and Zim have announced on 6 September 2023 a new operational cooperation agreement covering the trades between the Indian subcontinent with the East Mediterranean, the East Mediterranean with Northern Europe, and services connecting East Asia with Oceania. The cooperation is expected to be expanded when the current 2M-Zim collaboration is dissolved from January 2025, with MSC poised to further extend its current slot sale agreement with Zim on the Asia-PNW route to cover the Asia-US East Coa
Carriers reported a mixed 2nd quarter 2023 performance, with 3 carriers able to reverse their earnings decline despite the weak market conditions. OOCL and COSCO jumped to the top of the carriers earnings table with their outsized 2Q earnings despite weaker revenue and freight rates. OOCL and COSCO’s EBIT margins at 31.8% and 24.8% are more than 3 times higher than the average of the next 8 carriers which stands at just 6.7%. COSCO reported at the group level a $5.7 Bn improvement in its equ
COSCO reported full set of interim results in Asian evening of 29th Aug. Since bottom line has already been given in the alert published on 3rd July, the new news were in the top line and the costs, which give some clues as to how Cosco outperformed the industry in EBIT margin development in this down cycle: Cosco’s 2Q EBIT margin was 25% against the average of the next 8 carriers which stands at just 6.7%. Cosco’s 2Q revenue (-61% YoY) has dropped more than the average among the major liners.
OOIL’s 1H23 earnings fell 74% HoH. Earnings are still very good comparing to historical average. RoE was still stayed close to 20% despite of the large sum of idle assets (e.g. cash) on balance sheet. 74% sequential drop in earnings are a touch better than the industry average which is 83% HoH fall. OOIL’s unit costs fell 17% HoH relative to the industry’s average 11% HoH fall.