Shipping companies enjoy positive earnings thanks to high sea freight rates

Record-high sea freight rates have seen shipping companies produce positive second-quarter earnings reports.

Shipping companies enjoy positive earnings thanks to high sea freight rates hinh anh 1

Since July 2020, sea freight rates worldwide have begun to increase sharply. (Photo tinnhanhchungkhoan.vn)

Record-high sea freight rates have seen shipping companies produce positive second-quarter earnings reports.

The VN-Index gained 41.22 points last week, or 3.25 percent to close at 1,310.05 points after three consecutive weeks of decline. Total trading value on the Ho Chi Minh Stock Exchange (HOSE) fell 7.3 percent to 84.9 trillion VND (3.7 billion USD).

Shares of the Hai An Transport & Stevedoring JSC (HAH) increased 12.06 percent, Vinaship JSC (VNA) rose by 11.17 percent, Duyen Hai Multi Modal Transport JSC (TCO) 6.98 percent, Vietnam Ocean Shipping JSC (VOS) 6.29 percent, Petrovietnam Transportation Corporation (PVT) 5.11 percent and Pacific Petroleum Transportation JSC (PVP) 4.17 percent.

In the second quarter, the Hai An Transport & Stevedoring JSC (HAH) recorded a 72 percent increase in net revenue compared to the same period last year, reaching 449.3 billion VND with a net profit of 97.7 billion VND, up 150 percent.

In the first six months of the year, HAH's revenue reached 808 billion VND and post-tax profit recorded more than 183.2 billion VND, up 49 percent and 161 percent, respectively. With this result, HAH only fulfilled 49 percent of its revenue target but surpassed its profit target by 16 percent.

The Petrovietnam Transportation Corporation (PVT) also reported Q2 revenue of 1.87 trillion VND, a slight increase over last year. Post-tax profit rose by 8 percent to 256.5 billion VND. In the first half of this year, PVT collected 3.6 trillion VND in revenue, completing 60 percent of its yearly plan and 438.9 billion VND in post-tax profit, exceeding 8.6 percent of its yearly plan.

The net revenue of the Vietnam Ocean Shipping JSC (VOS) decreased slightly compared to the same period last year, reaching 325 billion VND, but post-tax profit was 242 billion VND. During the same period last year it suffered a loss of 32 billion VND.

In six months, VOS recorded revenue of 580 billion VND, down 15 percent year-on-year and fulfilling 47 percent of the yearly revenue target. Post-tax profit reached 222 billion VND, 7.4 times higher than the yearly plan, while in the same period last year it lost 118.2 billion VND.

Last week, shares of the Seagull Shipping Company (SSG) increased by 25.93 percent, from 5,400 VND per share to 6,800 VND per share. In the June 9 session, SSG suddenly hit the daily limit rise of 12.5 percent, starting a series of rising prices in the sessions that followed. Since its listing so far, SSG has increased by 183.3 percent.

At the annual general meeting of shareholders in 2021, the company submitted a business plan to shareholders with total annual transportation revenue of 23.4 billion VND and an after-tax loss of 200 million VND. However, 32.85 percent disagreed and asked the company to adjust revenue to 24.9 billion VND and post-tax profit to 1.3 billion VND. SSG has adjusted the plan accordingly, but so far the company has not announced its second quarter results.

Shares of Transport And Chartering Corporation (VFR) also increased by 20.45 percent during the week, rising from 4,400 VND per share to 5,300 VND per share.

Recently, VFR announced Q2 revenue of 37.4 billion VND, down slightly over the same period last year. Post-tax profit still reached 7.8 billion VND while in the same period last year it lost 7.4 billion VND.

In the first six months, VFR's net revenue reached 78.6 billion VND, down 5.1 percent year-on-year. Post-tax profit was 1.3 billion VND while it lost 21.9 billion VND last year.

Shares of Transportation and Trading Services Joint Stock Company (TJC) also recorded growth of 17.02 percent last week.

In the second quarter, TJC's net revenue reached 33.8 billion VND, up 42 percent, post-tax it was 3.1 billion VND. In the first six months, the company recorded revenue of 62.9 billion VND, up 22.1 percent. Post-tax profit reached 4.7 billion VND, 899 times higher than the same period last year. With the yearly target of pre-tax profit of 2.5 billion VND, the company has exceeded its plan for the whole year.

Since July 2020, sea freight rates worldwide have begun to increase sharply.

According to The Vietnam Maritime Administration, the sea freight rate (including surcharges) from Vietnam to the US for the highest 40 feet container is 14,250 USD per container, the lowest is 8,000 USD per container. So far, there have been at least four upward adjustments, 14 times higher than at the beginning of 2020.

The World Shipping Council (WTC) previously said that it would be difficult to determine when shipping costs will peak as global demand has not yet fully recovered.

SSI Research said that there were many factors affecting the shipping market. Some factors were temporary while others were quite long-term and will not change anytime soon.

“This means that an escalation of short-term factors could push freight rates to new highs, but are not sustainable in the long-term,” it said.

Accordingly, SSI forecasts that freight rates may peak in the fourth quarter of 2021, then adjust slightly in the first half of 2022.

“Freight rates may decrease significantly in 2023 when the supply of new ships comes into operation, but will maintain a higher level than before the COVID-19 pandemic as carriers gain more experience in supply management and increase cooperation,” it said./.

Source: VNA
en.vietnamplus.vn

Related News

Loosening the belt buckle for sustainable development of the maritime industry

Loosening the belt buckle for sustainable development of the maritime industry

VCN - Recently, the growth of maritime and waterway transportation has been impressive, with a double-digit rate of about 10-12% per year. However, despite many advantages, the waterway system has not been efficiently utilized, commensurate with its potential. The Customs News had a discussion with Pham Quoc Long, Vice Chairman of the Vietnam Shipowners' Association, on this issue.
Listed companies expected to recover in second half of 2023

Listed companies expected to recover in second half of 2023

The profits of listed companies are expected to recover in the second half of the year after performing poorly in the first quarter, buoyed by the recent supportive policies from the Government, said analysts at securities firms.
Top 10 Vietnamese construction material companies announced

Top 10 Vietnamese construction material companies announced

The Vietnam Report JSC on March 24 announced top 10 construction material companies of Vietnam in 2023.
500 fastest-growing companies in 2023 announced

500 fastest-growing companies in 2023 announced

Tin Viet Finance JSC, Dolphin Sea Air Services Corporation and VPS Securities JSC are among the top 10 in the 500 fastest-growing companies in Vietnam (FAST500) this year as announced by the Vietnam Report JSC and the VietNamNet e-newspaper on March 16.

Latest News

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

Hard capsule pharmaceutical shells from Brazil, China and India are also being investigated.
UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

To better exploit the tariff incentives from the UKVFTA, it is necessary for Vietnamese fishery producers and exporters to focus on improving quality and supply capacity to expand market share in the UK
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surplus value recorded a spectacular increase year on year.
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

VCN - According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.

More News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Read More

Your care

Latest Most read
US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

US initiates investigation into pharmaceutical capsule shells imported from Việt Nam

Hard capsule pharmaceutical shells from Brazil, China and India are also being investigated.
UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

UKVFTA gives advantages to Vietnamese fishery products in the UK, urging focus on quality for further expansion

To better exploit the tariff incentives from the UKVFTA, it is necessary for Vietnamese fishery producers and exporters to focus on improving quality and supply capacity to expand market share in the UK
Agricultural, forestry and fishery trade surplus value shoots up

Agricultural, forestry and fishery trade surplus value shoots up

VCN - According to the Ministry of Agriculture and Rural Development, the total export turnover of agricultural, forestry and fishery products in the first 10 months reached 51.74 billion USD, up 20.2% over the same period in 2023. Notably, the trade surp
New export and business cooperation opportunities from "dual conversion"

New export and business cooperation opportunities from "dual conversion"

According to a recent study from NielsenIQ, 16% of Vietnamese consumers consider a sustainable future as one of the important factors in their consumption decisions.
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Mobile Version