UPS share price dropped by 10% overnight (Apr 26) on bearish management guidance particularly on the domestic package, which offers a read-through to the demand for container shipping. On what may indicate the latest development of US retail sales, UPS's domestic package volume dropped 5% YoY in 1Q 2023, an acceleration from the 4% YoY drop in the previous quarter. Moreover, management in an CNBC interview suggested that the decline in the domestic package volume accelerated markedly during Ma
K&N reported yesterday (25thApr). The YoY drop in revenue, profit and volume in the group results, and the sea and air segment are no surprises. But the sequential rebound in EBIT/GP conversion rate for Sea Logistics was exceptional given the deterioration of the container shipping market during 1Q 2023. One reason that we figure was that the drop in the freight rates in contracts between K&N and the liners may have come steeper than the drop in spot rates that K&N is selling to the market durin
Matson provided earning alert for 1Q 2023 after US market close yesterday (19 Apr). Net profit at $29.3m to $33.8m, suggesting 60% QoQ and 91% YoY drop, which should be expected by the capital market. The QoQ growth in volume particularly for the China route was a surprise given the China service capacity during 4Q 2022 was much larger than 1Q 2023. Matson is earning premium freight rates relative to the going spot rates and it has exposure to the relatively more stable cabotage businesses, whic
Taiwanese liners’ March revenue (in USD) rebounded 14% MoM versus CCFI’s continue decline. YoY comparison is still negative by 66%. The sequentially rebound is likely volume driven, a normal seasonal pattern from Feb to Mar.
OOIL's 1Q 2023 shipping top line and breakdowns came out after Asian market on Thursday (6 Apr), being the first container liner to provide 1Q 2023 top line report. Revenue dropped 31% QoQ on average freight rate fall, which is in line with CCFI's 33% fall during the same period. Overall 1Q 2023 volume was flat QoQ. Transpacific volume being up 11% QoQ suggested OOCL, the shipping liner of OOIL, may have gained market share during past quarter as the US import from Asia was down during 1Q 202
COSCO reported after Hong Kong market close last Thursday (30 Mar). COSCO’s liner EBIT dropped only 32% YoY, which is much better most of the liner peers except for Maersk and Hapag Lloyd which have more favorable mix e.g. 2022-2023 contracts and exposure to Trans-Atlantic trade. Part of the reason that COSCO outperform probably was due to the large provision made during 4Q 2021, which raised COSCO’s non-cash slot costs and hence the payables as reflected in the work capital balance.
CIMC reported FY2022 results over night (28 March) that its net profit dropped 52% YoY driven mainly by the decline in the sales volume of dry containers. COSCO Development also reported FY2022 before market open on 31 March where its earnings dropped 36% YoY. Combined dry container output dropped 50% for these three manufacturers during 2022 after the industry has reached a record high in output during 2021. 2022 output was higher than the level in 2019 and 2020 but on par with the historical
OOIL reported FY2022 results after market close. The drop in earnings during 2022 H2 was within the range of the earnings drops reported by the other liners. A large dividend was consistent with OOIL's historical pay-out track record. Where this set of results stand out for us happened in the unit operating expense that fell 11% YoY and 10% HoH while the industry still experienced rise in operating expenses during 2022 H2. OOIL has previously made provisions for future operating expenses, noti
Singamas reported its full year results during lunch break today (15 Mar). The bottom line results of $46mn for FY and $8mn for 22H2, down 75% YoY and 93% YoY respectively was not a surprise since it was well discussed earlier in 2023 about the surplus of containers in the market and profit alerts were given in November last year and again 2 weeks ago. The negative surprise though come from probably the lower than expected final dividend payout of $6.11m declared for 2022. This came on top of
ZIM has reported a sharp drop in net profits in the 4th quarter of 2022, down 64% QoQ and 76% YoY. Zim’s earnings decline is larger than its peers with its 4Q 2022 EBIT margin the lowest amongst the main carriers that have reported their results so far, apart from intra-regional carriers. ZIM guided $100m- $500m EBIT for 2023 which remains in the high end relative to the company’s pre-2020 EBIT performance. Over the 10 year period from 2009 to 2019, ZIM recorded cumulative EBIT losses totallin