Wan Hai reduced EBIT losses by 37% QoQ in 2Q 2023. Like ZIM, Wan Hai also suffer from over-exposure on the weak Transpacific and Intra-Asia markets but it has been shielded from the rapid decline on the Oceania trades where Wan Hai do not have a presence. Wan Hai’s failure to invest in SOx scrubbers has also impacted its operating margins, with all of its ships using the more expensive LSFO.
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
Wan Hai and Feedertech/Unifeeder have teamed up to launch a new India-Middle East Service (IM1/IMS) that will call at Mundra, Nhava Sheva, Jebel Ali, Port Qasim, Mundra. The service will turn in 2 weeks and deploys the 1,858 teu BIG BREEZY from Wan Hai that will join the service on 1 August 2023 and the 1,613 teu SSL MUMBAI from Feedertech that joins on 8 August 2023. The India-Middle East Service (IM1/IMS) will start from 1 August 2023
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).
Wan Hai's Japan Korea Haiphong (JKH) service will be withdrawn with the last sailing by the 1,510 teu WAN HAI 281 that will end at Shekou on 2 July 2023. The service deployed 3 ships of 1,500-1,800 teu on a 21 days round trip that called at Moji, Hakata, Ulsan, Busan, Kwangyang, Keelung, Kaohsiung, Nansha, Haiphong, Qinzhou, Hong Kong, Shekou, Xiamen, Moji.
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
IAL and Wan Hai have extended their Nippon-South China Trader (NST) service that connects Tokyo, Yokohama, Nagoya, Nansha, Shekou, Tokyo when it was originally launched in November 2022 with a new connection to Manila from May 2023. The revised NST service calls at Tokyo, Yokohama, Nagoya, Nansha, Shekou, Manila (North), Nansha, Shekou, Tokyo and will turn in 3 weeks starting from 23 May 2023 with the 990 teu BF PERCH followed by 1,042 teu CHATTANOOGA, with a third ship to be added in June, the
Wan Hai reported its largest quarterly net loss at $70m in the first quarter of 2023, with losses at the gross profit level and operating cashflow level. Wan Hai has reduced its capacity exposure to Transpacific trade from 35% to 25% of its total capacity operated in the first quarter, with most of the reductions in the FE-WCNA route where capacity utilization has declined. Wan Hai's revenue dropped 71% YoY, the deepest YoY drop among the liners that have reported their first quarter perform
Taiwanese liners' April revenue fell 5% MoM after a 1-month rebound in March. The decline in these liners' revenue start to mirror that magnitude of the fall in CCFI.