The Taiwanese liners and OOIL have reported their top line results for 1Q 2024 between 10 April and 12 April (last week), being the first batch of operating updates from container liners for the period. The revenue for 1Q 2024 rebounded between 11% and 34% QoQ as expected but the rebound tracked below the CCFI’s 51% jump QoQ. Nevertheless, the top line rebound should move the liners’ EBIT margin to mid teen in 1Q. YMM being the liners with higher long haul spot exposure has delivered the higher
Evergreen Marine Corp (EMC), the Taiwan listed marine arm of the Evergreen Group posted the highest EBIT earnings margin amongst the main container carriers in 4Q 2024, with EBIT operating profits reaching NTD 4.7Bn (US$150m) for an EBIT margin of 6.8%. Full year operating profits reached NTD 34.7 Bn ($1,083m) while net profits hit NTD 35.3 Bn ($1,001m), with the company directors proposing cash dividends to shareholders of NTD 10 per share with a total payout of NTD 21.4 Bn at a dividend payou
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
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
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
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).
Evergreen Marine Corp. (‘EMC’), the Taiwan listed arm of the Evergreen Group, has announced the acquisition of the privately owned Evergreen Marine (Singapore) (’EMS’) for $780m on 19 June 2023, in a landmark deal that will pave the way for the eventual consolidation of the Evergreen Group’s container shipping assets into EMC. The acquisition is part of the Chang family’s moves to dissolve the Evergreen Group as the 4 sons of the late YF Chang battle for control of the group’s assets. The publi
The three Taiwanese liners' revenue (in USD) in May rose 2% MoM but fell 65% to $1,388mn in aggregate, which is comparable to the levels in August and September in 2020. The three Taiwanese liners in aggregate delivered $581mn operating profit in 3Q 2020 on $384mn fuel expenses and $321/ton average fuel price. The latest fuel expenses in 1Q 2023 was about $700mn on $631/ton average fuel price.
Container liftings for main carriers fell 6.8% YoY in 1Q 2023, accelerating from the 6.6% YoY fall in 4Q. All 9 of the main carriers recorded volume reductions, with Zim and Maersk recording the largest drops. The aggregate liftings of the 9 carriers in 1Q 2023 were even lower than the 2Q 2020 level during the first COVID wave. Despite the of the continuous improvement of the vessel turnaround time on the easing of port congestion, liner’s volume yield (liftings per slot) has continued to fall