Total 219 Posts
Maersk net profits slipped 47% QoQ in the 2nd quarter of 2023, with the dismal performance of the logistics segment continuing to pull down the Group’s results. Liner EBIT dropped by a lower 39% QoQ in 2Q to $1.97Bn which is higher than earnings in any quarter prior to 2020. Management lifted the lower end of the full year EBIT earnings guidance from $2 Bn to $3.5 Bn but kept the upper end unchanged at $5 Bn. As 1H 2023 EBIT has already reached $4 Bn, the revised FY guidance implies 2H EBIT to
Maersk’s failure to protect its liner market share in the last 3 years has cost it dearly, as it gave up at least $4 Bn in foregone profits that Maersk would have been able to generate if it had maintained its global capacity share at 18% instead of the current 15.5%. In its stead, Maersk has chosen to invest almost $10 Bn of incremental capital in its logistics services since 2020 as it pivoted to the logistics integrator strategy. However, in its latest 2nd quarter financial report, Maersk’s
Hapag-Lloyd has completed the acquisition of SAAM's port and logistics operations for a total price of $995m on 1 August 2023 after securing relevant regulatory approvals. The deal was first announced on 4 October 2022 with a binding agreement signed on 6 October 2022. The transaction includes interests in 1o terminals in Iquique, Antofagasta, San Antonio, San Vicente and Corral (Chile), Port Everglades (United States / Florida), Mazatlán (Mexico), Buenavista (Colombia), Guayaquil (Ecuador) and
CU Lines’ global expansion plans have been derailed with the withdrawal of its last 2 ships on the Asia-Med and Asia-USWC routes. CUL’s Initial Public Offering (IPO) bid first launched in January 2022 has already been withdrawn, and its goal of operating a fleet of 45 ships for 160,000 teu by 2025 will not be achieved with its current operated fleet shrinking by 67% from its peak in 2022 to just 30,700 teu currently. CUL has a remaining orderbook of 6 ships with a total capacity of 24,200 teu in
ONE reported a 58% QoQ drop in net profits in the 2nd quarter of 2023, with its higher exposure on the Transpacific routes dragging down its overall profitability by a larger margin compared to CMA CGM. EBIT margins dropped to 10%, its lowest level since 2020 but net profits were boosted by net interest income due to positive cash balances (ONE does not provide balance sheet details and interest income breakdown). ONE did not provide earnings guidance for FY2023, citing low visibility. However
CMA CGM recorded a 34% QoQ and 83% YoY decline in net profits to $1.3 Bn in the second quarter of 2023 on weaker freight rates despite improved liftings that saw sequential volume increases that confirmed the trend shown in our high frequency data on weekly capacity and utilization. But CMA CGM recorded a larger QoQ sequential drop in its average revenue per teu compared to the CCFI due to contract mix and Trans-Atlantic exposure relative to CCFI. Trans-Atlantic head haul freight rates have fall
Matson provided preliminary 23Q2 results after Thursday close. Matson's ocean transportation activities will be between $78-83mn, which is nearly 3 times of the 23Q1 results but still down 80% YoY. The YoY drop is expected by the market but the sequential rebound in earnings may have come as a positive surprise to the analysts in the capital market. Matson 's operation is highly concentrated on US domestic routes in the Pacific Ocean and FE-WCNA while CCFI suggested China-WCNA freight rates ha
EMC, the listed shipping arm of the Evergreen Group, reported June revenue on 7 July where its revenue (in USD) dropped 4% MoM. In contrast, Yang Ming’s June revenue rebounded from its May low while Wan Hai’s June revenue was flat MoM. Overall, the 3 main Taiwanese carriers’ 2Q revenue fell 3% QoQ and 66% YoY. EMC was only able to avoid a decline in revenue due to the consolidation of the Evergreen Group’s non listed entities held outside of EMC (see Week 26 Market Pulse).
OOIL reported 2023 Q1 top line breakdown overnight (5 July) where its revenue dropped 9% QoQ and 63% YoY. More importantly, overall average freight rates for OOIL fell 15% QoQ and 63% YoY, comparing to CCFI's 14% QoQ and 70% YoY drop. And all four routes registered decline in average freight rates both QoQ and YoY where Transatlantic route suffered bigger sequential fall. OOIL has earned $530mn in EBIT during 1Q23 as per our computation from COSCO's disclosure. The sequential drop in average fr
COSCO provided earnings alert after market close on 4 July where COSCO expects its EBIT and profit attributable to shareholders for 1H23 to be Rmb24.5bn and Rmb16.6bn respectively. Since COSCO's EBIT and profit attributable to shareholders for 1Q23 were Rmb10.7bn and Rmb7.1b respectively, this COSCO's earning alert implies 2Q23 earnings to be higher QoQ. The sequential growth in earnings as reported by COSCO is exceptional and could not be used as read-through to the other liners earnings to be