Total 203 Posts


YMM earning stabilized in 2Q

Yang Ming 2Q earnings avoid sequential fall at the EBIT level as sequential fall in revenue was offset by the reduction in operating expense, which is an outliner. Yang Ming led the container liner peers in 13% QoQ reduction in OPEX excluding bunker, depreciation and SG&A,  which consists of mainly port handlings and equity repositioning. Among the liners, e.g. Maersk and Hapag Lloyd,  that have disclosed port handling expenses, unit costs for this item were down QoQ but the drop is mostly off


Hapag Lloyd earnings fell but lead peers on EBIT margin and RoE

Hapag Lloyd reported before market open on 10 August. Hapag Lloyd’s 2Q results suffered second biggest a bigger QoQ fall in EBIT, following ONE’s 67% as Transatlantic head haul freight rates fell by 50% (Source: Xeneta) while CCFI fell only 7% during 2Q. However, Hapag Lloyd remain a leader in the EBIT margin among its container liner peers. What may have been overlooked however is that Hapag Lloyd has been leading its peers in delivering RoE (return on equity) on more efficient capital managem


Flatlining revenue trend for Taiwanese carriers

The three main Taiwanese carriers' July revenue came out flat MoM but remained down 67% YoY. The three liners' aggregate revenue held steady at $1.4 Bn a month which is 70% lower than the cycle peak in January 2022 but remain 40% above the average level before 2020. Long haul trade volumes have rebounded in July based on Linerlytica's capacity and utilization data, but the average freight rates based on the CCFI was down 5% MoM in July. EMC, the Taiwan listed arm of the Evergreen Group, was t


CUL reaffirms focus on Intra-Asia business

China United Lines (CUL) Chairman and CEO Raymond Chen Honghui has appeared in public for the first time since June at an internal meeting on 8 August 2023 in Shanghai. However, former co-CEO Lar Christiansen has left the post earlier this year, less than 18 months after he was appointed on 18 November 2021. The company confirmed the suspension of its European and North American services in 2023, and have shifted its focus on its China-Taiwan, South East Asia and Indian Subcontinent/Middle East


Maersk 2Q 2023 results down but the down cycle may have found bottom

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


Questionable Pivot For Maersk

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 completes acquisiton of SAAM

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 expansion plan scuttled

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 net earnings more than halved

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 2023 2Q Earnings Continued to Fall But At Slower Pace QoQ

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

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