Focus on major logistics events | Several shipping companies announced half-year results; Panama Canal restrictions extended

Hi, it's time to focus on major logistics events every week, hot industry trends, Souhang pays attention in real time! Sou Xiaohang sorts out the 10 pieces of information that have received a lot of attention in the international trade and logistics circles this week as follows, and you can grasp the latest developments in the international frontier in 2 minutes. Come and see:

01 ZIM will lose US1 million in the first half of 2023

This week, Zim (ZIM) released its unaudited financial report for the second quarter and the first half of 2023.

In the second quarter of 2023, Zim’s container volume reached 860,000 TEUs, a year-on-year increase of 0.5%; single-container freight reached US,193, a year-on-year decrease of 66.8%; operating income was US.31 billion, a year-on-year decrease of 61.8%; profit before interest and taxes (EBIT ) was a loss of US8 million, compared with a profit of US.764 billion in the same period last year; pre-tax profit was a loss of US2 million, compared with a loss of US.736 billion in the same period last year; net profit was a loss of US3 million.

In the first half of 2023, Zim’s container volume reached 1.629 million TEUs, a year-on-year decrease of 5.0%; single-box freight reached US,286, a year-on-year decrease of 65.4%; pre-tax profit was a loss of US7 million, compared with US.955 billion in the same period last year; Profit came in at a loss of 1 million.

02 Evergreen Shipping announced its first-half results

During the reporting period, Evergreen Shipping realized operating income of approximately NT4.21 billion (approximately US.21 billion), compared with NT5.82 billion in the same period last year, a year-on-year decrease of 61.1%; the net profit attributable to the owners of the parent company was approximately NT.13 billion New Taiwan dollars (about 320 million U.S. dollars), compared with NT3.65 billion in the same period last year, a year-on-year decrease of 95.0%.

Regarding the market prospect, Zhang Yanyi, chairman of Evergreen Shipping, previously analyzed that the current global container shipping market has a large gap between supply and demand, and the imbalance between supply and demand is serious. From the perspective of supply, freight rates are difficult to recover in a short period of time due to excess shipping space; from the perspective of demand, this year's peak season may be delayed, and it is expected that freight rates will not rise until the end of the third quarter or the beginning of the fourth quarter.

Zhang Yanyi also said that due to the serious oversupply of shipping space, some old ships should be eliminated, and the willingness of shipping companies to eliminate old ships next year will be even higher.

03 Pan Ocean's first half results announcement

Recently, South Korea’s Pan Ocean Shipping (Pan Ocean) released its first-half performance announcement. The company’s operating income in the first half of the year was 2.2211 trillion won (about 1.66 billion U.S. dollars), a year-on-year decrease of 29.8%; operating profit was 237.6 billion won (about 1.78 billion), a year-on-year decrease of 41.7%.

Pan Ocean Shipping said that the company's performance in the first quarter deteriorated because of the sharp drop in the Baltic Dry Bulk Index (BDI). The average BDI in the first quarter was 1004.7, a decrease of 51% from 2041 in the first quarter of last year, and a decrease of 34.0% from 1523 in the fourth quarter of last year.

After entering the second quarter, the shipping market still failed to recover effectively, and the average BDI was 1313, a year-on-year decrease of 48.1%. Affected by factors such as the deterioration of the shipping market, the company's performance in the first half of the year continued to be sluggish.

04 Norden announces second quarter financial results

Recently, the Danish shipowner company DS NORDEN (Norden for short) announced its financial results for the second quarter of 2023. The data shows that the company's revenue in the second quarter fell by about one-third to US2 million, and its profit was US8 million, lower than last year. 179 million US dollars in the same period, a year-on-year decrease of about 40%.

CEO Jan Rindbo said: "Despite weak market sentiment, customer-focused cargo services in a volatile market ensured dry bulk and tanker margins. Furthermore, by actively managing our portfolio, we still achieved High profits and proceeds from ship sales."

05 Korean shipping performance declines but profit exceeds expectations

Korea Shipping (KLC), a shipping subsidiary of South Korea's SM Group, released its financial report. In the first half of this year, its operating income was 698.3 billion won (about 524 million U.S. dollars), a year-on-year decrease of 10%; its operating profit was 125.1 billion won (about 94 million U.S. dollars) ), a year-on-year decrease of 12%.

It is reported that, relying on the stable business of the dedicated fleet based on the implementation of stable long-term contracts with high-quality cargo owners, and the operation of new LNG ships, the operating profit achieved by Korea Shipping still exceeded market expectations.

In the second quarter, the company's operating margin reached 19%, 2 percentage points higher than the market forecast of 17%, and also exceeded the average operating margin of 17.7% in 2021 and 18.3% in 2022.

06 Panama Canal restrictions extended to September 2

The Panama Canal Authority announced on August 16 that due to the continued severe drought, the ship restrictions implemented at this stage will be extended until September 2, and the number of ships allowed to pass per day is still limited to 32.

According to Reuters, according to the current restrictions on the Panama Canal, the maximum draft of ships passing through the Panama Canal is 44 feet (13.41 meters). The canal allows only 14 scheduled ships per day through the old locks used by smaller craft, and 10 scheduled ships per day through the new larger locks. The number of passages reserved for unreserved ships is only 8. This compares with 36 ships passing through the canal daily during the same period in previous years.

The canal authority also announced that until September 2, the special auction of the two lock access permits will continue to be suspended.

07 The Baltic Dry Bulk Freight Index reached a new high

The Baltic Dry index rose to a more than one-month high on Wednesday, helped by higher rates for panamax and capesize vessels. The Baltic Dry Index rose 67 points, or 5.8%, to 1,233 points. The capesize index rose 104 points, or 6.5%, to 1,701. Capesize average daily profit rose 2 to ,106.

The panamax index rose 74 points, or 5.2%, to 1,486, its highest level in three months. Panamax average daily profit increased by 4 to ,374. The Supramax index rose 40 points, or 5.2%, to 812 points.

08 Mediterranean Shipping expands air cargo business

The world's largest liner company Mediterranean Shipping Company (MSC) is looking to expand its air cargo business by acquiring a majority stake in Italian shipping and cargo company AlisCargo despite weak markets. It is reported that the sale of AlisCargo will be finalized once the Italian regulator approves the restart of the service.

"The acquisition of a majority stake in Aliscago is a key step towards expanding the capabilities of MSC Air Cargo Solutions," said Jannie Davel, Senior Vice President, MSC Air Cargo. "This will ultimately provide our customers with a high quality and consistent product." We are also proud that we have found a partner with a shared vision and a strong foundation to develop our relationship further. Although details of the acquisition have not been made public, MSC has said it intends to take full ownership by early next year.

09 The number of battery-powered ships is growing rapidly

As the world strives to reduce its reliance on fossil fuels, battery-powered ships are increasingly seen as a viable alternative to traditional diesel-powered vessels.

According to data from the Maritime Battery Forum, nearly 600 ships in operation around the world have adopted batteries as part of the energy solution, and another 190 newbuilding orders will use batteries.

Relevant data from Det Norske Veritas also shows that there are 589 battery-powered ships in operation and another 208 new orders for battery-powered ships. Of these, car and passenger ferries accounted for the largest share, with 253 ships in operation using batteries and 91 newbuildings using battery power. They were followed by offshore supply vessels, cruise ships and fishing vessels, as well as vessels classified as engaged in "other activities".

10 The spot freight rate of the Far East route rose

As a number of liner companies have raised the GRI again, the container shipping prices of the three major export routes in the Far East have risen significantly.

Since the end of July, the freight rate of the Far East to Northern Europe route has risen sharply, from a level below ,500/FEU, up 0, an increase of 39.6%, narrowing the price difference between the route and the Far East to the Mediterranean route to 0, This is the smallest spread this year.

At the same time, in recent months, the freight rate of the Far East to US West route has also shown a steady increase, rising by US0 in a month from July 1 to August 1. Average spot rates have risen 51.5% since the end of June.

Sand pointed out that the price increase came ahead of the peak season and a new wave of contract tenders. But the fundamentals are still weak, and it remains to be seen whether the increase will continue, which largely depends on whether the short-term boost in freight rates can be transformed into lasting gains, and how it will affect the GRI adjustment in September.