Financials

Companies

Hapag Lloyd 4Q inline with guidance

Hapag Lloyd reported preliminary results today (31 Jan) before European market open. EBIT at $3.3bn for 4Q, down 37% QoQ and 21% YoY, tracking above our expectation on better than expected freight rates but broadly in line with guidance.  Average freight rates fell just 15% QoQ in 4Q, comparing to CCFI's 45% QoQ fall.

Companies

ONE quarterly earnings down 50% QoQ

ONE reported during lunch break today (31 Jan). Net profit dropped 50% QoQ and 2022 financial year (Apr 2022-Mar 2023) earning guidance was cut by 4% or Q4 (Jan-Mar 2023) earing guidance was cut by 37%m. The 50% QoQ drop in net earnings is a touch better than the 60% QoQ drop that we previously estimated based on the Taiwanese liner's top line results here [https://www.linerlytica.com/app/post/twn-liners-top-line-reports-hinted-potentially-60-qoq-fall-in-net-profit/] . ONE's average freight ra

Companies

Matson 4Q earnings down 72% QoQ

Matson has just reported preliminary earnings before US market open on 19 Jan, as the first container liner to report 4Q 2022 bottom line results. Preliminary net earnings in between $69.9mn and $74.8mn, down 72% QoQ and 81% YoY. In EPS, it would be about $1.88 to $2.01, much lower than the capital market consensus of $3.42 (source: Refinitive IBES). To be fair, this set of results are better than our expectation as we expect Matson could be close to loss making since, in our estimates, probably

Markets

Intra Asia Tradelanes Under Pressure

The intra-Asia tradelanes are coming under the most pressure at the moment with rates on several key corridors already slipping to pre-2020 levels as capacity that were previously redeployed to the Transpacific are now returning to Asia. Total containership capacity employed on the Intra-Far East routes is rising again after a 2 year decline, as ships that were redeployed to the more lucrative long-haul trades now returning in large numbers. Intra-FE capacity peaked in early 2020 at 3m teu bu

Financials

Container Liner Earnings Release Schedule

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

Financials

TWN liners top line reports hinted potentially 60% QoQ fall in net profit

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

Companies

YMM Dec Revenue Down 14% MoM

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.

Financials

Costco take $93m charge for early termination of containership charters and equipment leases

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,

Companies

CUL pays $67m penalty for early termination of Antong cooperation agreement

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

Companies

Liner Top Liner Drop Accelerated in November

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.

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