Regional growth powered strong 2022 earnings for intra-Asia carriers

   Release date: 06/06/2023     Hits: 6782    Comment: 0    
Note: Intra-Asia carriers generally did better last year than in 2021, as cargo volumes and revenue held up, although demand o

Intra-Asia carriers generally did better last year than in 2021, as cargo volumes and revenue held up, although demand on long-haul lanes began regressing in the middle of the year.

The Loadstar viewed 2022 accounts that South Korea’s 12 feeder operators submitted to the Financial Supervisory Service, and their operating profit was up 41% year on year, to $3.43bn.

The number of feeder operators whose operating profit passed the KRW100bn ($79.18m) mark also increased from five to six: Korea Marine (KMTC), Sinokor, Heung-A Line, Namsung, CK Line and Pan Ocean.

A 12% increase in the average freight rate/teu from $2,567 in 2021 to $2,881 last year drove their earnings growth, as they carried over half the country’s seaborne exports.

However, average freight rates fell from $3,320/teu in the first nine months to $1,563 in Q4 22, as demand corrected, and volumes fell 4%, from 3.81m teu to 3.68m teu last year.

KMTC maintained pole position among South Korean feeder operators, with net profit up 28% year on year, to $1.47bn, while Hong Kong-based SITC, one of the largest intra-Asia carriers, achieved a net profit of $1.95bn last year, up 67% on 2021. While cargo volumes were up by 4% to 3.26m teu, average freight revenue was up 33% to US$1,100/teu.

China’s Sinotrans saw net profit up 40% year on year, to $302.7m, although cargo volumes were down 8%, to 862,600 teu. Parent China Merchants Energy Shipping said: “We experienced varying degrees of volume reduction due to port congestion, pilot shortage, inadequate capacity from our partners and seasonal fluctuations. We increased the revenue of core routes by arranging extra loader services and opening a second Ningbo-Ho Chi Minh route.”

Compatriot Ningbo Ocean Shipping saw its 2022 net profit up 29% year on year, to $97.1m, as intra-Asia shipments rose 24%, to 512,000 teu and coastal cargo grew 12%, to 753,000 teu.


 
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