Wan Hai will withdraw 2 of its Far East-US West Coast services calling at Oakland and Seattle, but will retain its remaining 4 transpacific services that serves the US West Coast (2 services) and the US East Coast (2 services) with an increase in overall capacity as its first 13,200 teu ships are introduced on the trade. The Asia America Service I (AA1) willl be withdrawn with the last sailing scheduled to depart from Shekou on 16 October 2022 with the 1,708 teu TOKYO TOWER. The service calls a
OOIL and the Taiwanese liners' revenue reports came out after the market close on Friday (7 Oct). All four liners reported sequentially lower revenue in 3Q. Liners will start to report their 3Q earnings in the coming weeks. These revenue reports suggest 3Q earnings may have come off from this cycle peak in 2Q. Consensus in the capital market is expecting 3Q liner* earnings to be between 4% up and 18% down QoQ. OOIL's 3Q revenue dropped only 5% QoQ while Wanhai's 3Q revenue dropped 18% QoQ. Sequ
WHL and YMM also reported their August revenue last week, after EMC. WHL's August revenue fell 20% YoY, 12% MoM and 40% from its peak in Jan 2022. YMM's August revenue also fell both YoY and MoM. If the same MoM pace continues for Sep, the three Taiwanese liners will likely report 9% M0M lower top line and hence 7% QoQ lower top line for for 3Q 2022. Liner industry reported about 58% EBIT margin and 50% net profit margin during 2Q 2022. So on the ballpark, every 1% drop in top line would mean
The best yard stick, in our view, measuring management performance is the financial return generate over time. And the most direct financial return for shareholders is the dividend pay-out relative to a company's market value. Liners have been swimming in cash on extraordinary earnings since 2021. Reasonably, they also distributed dividend generously. Between 2021 and July 2022 end, a total of $38bn* of dividend paid while another $14bn have been committed to be paid in 2022 by the 16 shipping
Taiwanese liners' industry first top line reports came out over the last three days. In July, Evergreen delivered another record revenue while both Yang Ming and Wan Hai saw their top line came of 5% and 6% MoM respectively. In aggregate, the Taiwanese liners' top line in NTD was down 1% MoM. Since USD has strengthened further in July, these liners' top line in USD maybe down 2% MoM. Given July volume usually is higher than same in June. Average freight rates may be down sequentially during J
Taiwanese carriers' monthly revenue up 6% MoM in June and, on quarterly basis, 22Q2 was flat comparing to 22Q1, a trend consistent with the top line reported by OOIL earlier.
Wanhai is launching Asia - South America III Service (AS3), another FE-WCCA service, connecting Shekou, Hong Kong, Ensenada, Manzanillo (Mexico), Shekou in 42 days
MSC is pulling further ahead from Maersk. CMA CGM and Evergreen also gaining market share.
PIL and partners enhance Gulf China Service, with ESL to join in JulyPIL has announced an enhancement to the Gulf China Service (GCS) with the addition of new calls at Shanghai and Singapore.
Taiwanese liners' May top line came out flat MoM, again reassuring that impacts during the Shanghai lockdown were minimal for the liners.