{"id":100338,"date":"2023-08-25T17:13:48","date_gmt":"2023-08-25T10:13:48","guid":{"rendered":"https:\/\/advantage.vn\/?p=100338"},"modified":"2023-08-25T17:13:48","modified_gmt":"2023-08-25T10:13:48","slug":"container-lines-see-earnings-plunge-90-in-second-quarter","status":"publish","type":"post","link":"https:\/\/advantage.vn\/en\/container-lines-see-earnings-plunge-90-in-second-quarter\/","title":{"rendered":"Container lines see earnings plunge 90% in second quarter"},"content":{"rendered":"

After two very profitable years for the shipping lines, the market is shifting into a post-pandemic normality, as reported by Sea-Intelligence.<\/strong><\/p>\n

More specifically, while the fourth quarter of 2022 gave a first glimpse into what this might look like, the first quarter of 2023 was the first quarter where the carriers\u2019 operating profits took a real hit.<\/p>\n

Additionally, this continued into the second quarter of 2023, with the combined earnings before interest and taxes (EBIT) dropping by 90% year on year to a little over US$3 billion.<\/p>\n

\"zim+advantage\"<\/p>\n

Further to that, both ZIM and Wan Hai once again recorded operating losses. While ZIM has had profitability issues in past quarters, this was a first for Wan Hai in since 2012.<\/p>\n

The figure shows the EBIT\/TEU of the shipping lines that publish both their EBIT and their global transported volumes.<\/p>\n

“None of these shipping lines were able to sustain their EBIT\/TEU figures in 2023, with the largest 2023-Q2 EBIT\/TEU recorded by OOCL of US$305\/TEU. In contrast, the smallest EBIT\/TEU in 2022-Q2 was US$1,377\/TEU,” noted Sea-Intelligence analysts.<\/p>\n

Also, Maersk with US$207\/TEU, Hapag-Lloyd with US$298\/TEU, and ONE with US$137\/TEU all recorded EBIT\/TEU within a much narrower range of US$130-300\/TEU.<\/p>\n

In all of this, ZIM recorded a negative EBIT\/TEU of -US$195\/TEU. Basically, they lost US$195 for every TEU that they moved in the second quarter of the current year.<\/p>\n

\"sea-intelligence-EBIT\"<\/p>\n

A large reason for the decline in profitability is the decrease in the freight rates, which fell by 48% to 67%, according to shipping lines’ data. The drop in box volumes has also played a role in the lower profits.<\/p>\n

“What is surprising, however, is that ZIM, one of the only two shipping lines to record an EBIT loss, grew their volumes 0.5% globally, and by roughly 13% on both Transpacific and Asia-Europe,” noted Alan Murphy, CEO of Sea-Intelligence.<\/p>\n

container-news.com<\/p>\n

>> Other news:\u00a0<\/strong><\/span><\/p>\n