Container liners Q4 earnings report will likely be a turning point of this earning cycle, underlined by the 45% QoQ drop in average CCFI index. Listed Taiwanese liners have released their revenue report in the second week of January. The up coming liner revenue or earning reports IF they follow last year's release schedule would be as follows (last year release date): 1. Maersk preliminary results (14 Jan); 2. Matson profit alert (19 Jan); 3. OOCL operating updates (24 Jan); 4. COSCO prof
The listed Taiwanese liners have all reported their Dec 2022 revenues, which are the first actual figures of the FY2022 and 22Q4 results among all liners. In short, these liners revenue dropped 39% QoQ and 44% YoY. In 3Q22, the listed Taiwanese liners together have delivered $11bn in revenue and $5.9bn in net profit. The $4.3bn or 39% QoQ fall in revenue during 4Q22 will likely reduce these liner's net profit by nearly 60% QoQ, in our estimates assuming 20% lower fuel expenses and 60% lower ta
Yang Ming Marine (YMM) reported NTD16.3bn or $534mn (on 30.6 NTD/$) for December revenue. In US dollars, the counter was down 58% YoY and 14% MoM. In aggregate, 4Q22 revenue was $1.9bn, down $1.4bn or 42% QoQ. Given most of of the decline was driven by much lower freight rates. YMM's 4Q net earnings could be down over $1bn, against the $1.6bn reported for 3Q.
US retailer Costco has recorded a $93m charge in the fiscal quarter that ended on 20 November 2022 for the termination of charters for 7 containerships as well as related equipment leases that it had operated on the Asia to US routes. The one-off charge will more than erase all the savings that Costco enjoyed since the company started operating their own ships through an exclusive charter arrangement with US operator Pasha that started in August 2021. Costco said that it had shipped nearly 50,
China United Lines (CUL) has reached a settlement with Antong Holdings for the early termination of its Long Term Cooperation Agreement on 8 December 2022, subject to the approval of Antong shareholders. CUL had given notice to Antong on 28 November 2022 for the termination of the agreement that involves the charter of 12 panamax ships of 4,132 teu to 4,713 teu from Antong for $52,000 per day and the lease of Antong containers for operations on the Asia-Europe and Transpacific routes under a p
The aggregate November monthly revenue for the 3 Taiwanese liners amounted to $2,2bn, down 18% MoM and 44% YoY. The 18% sequential drop was faster than the CCFI's 14% sequential drop in November.
The main carriers’ average EBIT margins fell by 3.4% from the 2Q peak of 54.3% to 50.9%. However, the gap between individual carriers are widening, with some notable drops at Wan Hai (down 13.0%), OOCL (down 8.3%), HMM (down 6.8%) and Yang Ming (down 6.1%). Carriers with a larger share on the Asia-US West Coast have suffered the largest margin erosion, with a sharper drop expected in 4Q 2022 as the rate malaise has spread to other tradelanes.
On 25 Nov, CMA CGM reported 3Q earnings which was down 7% QoQ driven by 3% QoQ lower freight rates and 9% QoQ higher OPEX. Main delta for OPEX increase are fuel and chartering expenses. CMA CGM’s group level profit margin is lower than that of the liner industry average, being affected by the less profitable logistics businesses. However, CMA CGM enjoys relatively better capital efficiency on less idle cash on its balance sheet, which helps CMA CGM deliver a Return on Equity ratio on par with
ZIM has slashed its 4Q 2022 EBIT earnings forecast to $440m from $740m, compared to $1,554m in 3Q 2022 due to falling freight rates and weaker liftings. Although ZIM has emphasized its commercial and operational agility, this will be tested over the next 2 years as it takes delivery of more than 50 newbuildings and committed vessel charters that will raise its operated capacity by some 70% (before charter redeliveries). Zim’s heavy reliance on chartered tonnage since its financial restructurin
ZIM reported before US market open on 16 Nov. Net profit was down 13% QoQ on sequentially lower freight rates, lower volume and higher costs particularly in chartering expenses. In the earnings call, the management mentioned that they have lower the signed freight rates in the existing contracts.