CMA CGM reported 4Q 2023 EBITDA earnings of $630m for its container shipping business, out-performing Maersk for the second straight quarter. Maersk had reported EBITDA of $196m and EBIT losses of -$920m in the quarter . CMA CGM’s EBIT losses is estimated at between -$670m to -$770m, based on depreciation and amortisation expenses of $1.3 Bn to 1.4 Bn in the 4th quarter, with the company no longer reporting its EBIT figures since 4Q 2023. The 4Q EBIT losses dwarfs CMA CGM’s previous quarterly p
Matson reported full year results on 20 Feb, with further details to the headline earnings already provided in Jan. Matson was able to buck the trend of negative operating profits reported by its larger rivals, with liner operating earnings of $66m in the 4th quarter of 2023, while group level net profits reached $62m. Matson’s container liftings dropped 5% YoY in the 4th quarter, and although overall utilisation levels continued to drop in 1Q 2024, it has outperformed last year’s trend, in lin
Monthly revenue for Taiwanese liners went up 20% or $278mn MoM in aggregate in January 2024 as the rally in freight rates started to show. To put the increase in revenue in context, these three liners together made $201mn EBIT during 3Q 2023. Their 4Q earnings are not out yet but their 4Q revenue were down about $202mn QoQ comparing to 3Q 2023. Meanwhile, CCFI composite index went up 36% MoM in January and 22% MTD 9 Feb. Further upside to the liners revenue likely to come in February. Liners' r
On 31 January, ONE reported EBIT losses at -$248m for 4Q 2023, compared to EBIT $58m in 3Q 2023 and $2.7Bn in 4Q 2022. The deterioration was due mainly to the 54% drop in average unit revenue from $2,362 in 4Q 2022 to $1,081 in 4Q 2023. ONE expects a turnaround in 1Q 2024 with EBIT rebounding to $132m, comparable to the earnings in 2Q and 3Q 2023. The guidance appears conservative as CCFI averaged 1,246 YTD, which is 40% higher than the level during 2Q and 3Q 2023.
Maersk reported negative group level EBIT at $520m for 4Q 2023, its worst quarterly EBIT loss on record. Operating cash flow was $166m but if its results were still using the pre-IFRS 16 account standards (prior to 2019) when chartering expenses were accounted as a cash outflow, Maersk would have reported negative operating cash flow for the first time. 4Q 2023 Liner EBIT dropped to $920m, a $893m reversal compared to the previous quarter due mainly to the fall in container freight rates which
At least 2 carriers operating on the China-Baltic Russia route have suffered financial troubles. The 2,472 teu MYD JIMEI operated by Global Field Line (GFL) is currently stranded in the Baltics. In a letter to GFL customers dated 25 January 2024, the carrier requested for an additional payment of $3000/20' and $5000/40' to allow the company to settle outstanding payments to its local agent and port operator. The ship has been waiting to dock at St Petersburg since 8 January 2024. Another Russi
Unlikely a surprise to the market, liners are reporting sequentially lower 4Q 2023 results, which is in line with CCFI while the QoQ rebound in SCFI will likely only show in the liners' book in 1Q 2024. While the 4Q results may not be pleasing to look at, everything changed since the second half of December. COSCO reported earning alert, OOCL reported top line breakdown while the Taiwanese liners reported their December revenue this week. COSCO alerted 68% QoQ lower earnings during 4Q while O
Hapag Lloyd’s earnings during 3Q fell back to the pre-2020 level. Yet. Hapag Lloyd still lead the liner peers on EBIT margin and Return on Equity (RoE). Hapag-Lloyd has been consistently generating better EBIT margin than the other top 5 liners, save for COSCO, which are on a different set of accounting policies. The better RoE is attributable to both higher EBIT margin and better capital efficiency. Hapag-Lloyd has been cutting its fuel costs by both higher fuel efficiency and scrubber fittin
Taiwanese carriers reported 3Q 2023 financial results last week with their earnings decline accelerating in spite of the volume recovery. Aggregating the liners’ top line breakdown, volume was up 4% QoQ and 2% YoY while unit revenue was down 11% QoQ and 58% YoY. Interest and liquid investment income have become a significant addition to the carriers’ bottom lines as their cash balances are now comparable to the fixed assets on their balance sheets. Several off the charts data in EMC’s 3Q result
Zim recorded a net loss of $2,270m in the 3rd quarter, due mainly to a non-cash asset impairment write down of $2,063m. Adjusted EBIT losses excluding the non-cash items stood at -$213m for an EBIT margin of -16.7% which places Zim at the bottom of the carrier EBIT margin rankings for the 2nd consecutive quarter. Zim will receive a boost to its earnings of over $150m per quarter as a result of the impairment charge due to lower depreciation expenses going forward but it will not be enough to l