WHL

Companies

Taiwanese Liner 3Q results

Taiwanese carriers reported 3Q 2023 financial results last week with their earnings decline accelerating in spite of the volume recovery. Aggregating the liners’ top line breakdown, volume was up 4% QoQ and 2% YoY while unit revenue was down 11% QoQ and 58% YoY. Interest and liquid investment income have become a significant addition to the carriers’ bottom lines as their cash balances are now comparable to the fixed assets on their balance sheets. Several off the charts data in EMC’s 3Q result

Companies

Taiwanese Liner August revenue up 4% MoM

Taiwanese liners’ August revenue in NTD moved up 6% MoM, but revenue in USD moved up less at 4% MoM. In either currency, the rebound is better than CCFI on likely sequential volume growth. Since hitting the bottom in February, these liners’ monthly revenue has rebounded between 3%-27% with EMC leading due to its ongoing consolidation of the unlisted ship owning entities highlighted by the acquisition of the privately owned Evergreen Marine (Singapore) (EMS) for $780m on 19 June 2023, in a landm

Companies

Taiwanese Liner’s Revenue Stayed Flat MoM in June

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).

Companies

Taiwanese Liners' Revenue Rose 2% MoM in May

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.

Services

IAL & Wan Hai extends Japan-South China (NST) service to Philippines

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

Companies

Wan Hai in the red in 1Q 2023

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

Companies

Liners monthly revenue rebounded sequentially in March

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.

Companies

Wan Hai 4Q 2022 fell into red

Wan Hai provided head line numbers for FY2022 after market close today (13 March). The 4Q net earnings fell into red as per our computation

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.

Companies

Wanhai profit drop 28% QoQ

Wanhai reported after Friday (11 Nov 2022) closed. Net profit dropped 42% YoY and 28% QoQ. Not much surprises since the top line has been reported few weeks ago and the QoQ quantum drop in pre tax earnings eg NTD12bn is similar to the top line QoQ drop. Liners with less contracted business ratio is still see greater earnings drop near term.

© 2023 Linerlytica (ver. 1.0.16). All rights reserved.
Liner Analytics Pte. Ltd.