Israel: ZIM posts Q2 loss, taking long view during ‘prolonged period of market weakness’
Global container liner shipping company ZIM posted a second-quarter loss of $213 million, compared with net income of $1.34 billion for the same 2022 period, the Haifa, Israel-based company announced on Aug. 16.
The company had a Q2 operating loss of $168 million, compared with operating income of $1.8 billion in Q2 2022. Revenues for the second quarter were $1.3 billion, a year-over-year (YOY) decrease of 62%. The average freight rate per twenty-foot equivalent was down 67% YOY.
"We continue to take proactive steps to respond to current market realities, with a focus on minimizing costs while optimizing our commercial strategy,” ZIM President and CEO Eli Glickman said. “We have taken action to rationalize our existing capacity and routinely review our services to adapt our network to customer preferences and identify new commercial opportunities. We also explore opportunities to leverage operational collaborations to improve efficiencies. … We believe our ample liquidity and solid balance sheet will enable ZIM to operate from a position of strength and maintain a long-term view even during a prolonged period of market weakness."
South Korea: HMM takes big revenue, profit hits in Q2
In the second quarter, South Korean container and transportation shipping company HMM Co. Ltd. posted revenue of $1.6 billion, a 58% decline from the same 2022 period, the container and transportation shipping company announced on Aug. 10.
Net profit was $238 million, 89% lower than the profit recorded in the same 2022 period. Operating profit fell 95% year over year.
“The container shipping industry has been experiencing an overcapacity, mainly led by the influx of new containerships ordered during the pandemic and supply chain normalization at major ports and inland regions,” HMM officials said. “The cascading effect of larger vessels from the main east-west trades to smaller lanes intensified the imbalance between supply and demand.”
Also, freight rates “in most key trade lanes have been under downward pressure” during the year’s first half, they added.
HMM officials expect a gradual recovery in Transpacific trade cargo volumes: They believe “a rebound in inventory restocking and a soft landing for the U.S. economy are likely to come to fruition, with no drastic changes in the supply side in the near term.”
Germany: Hapag-Lloyd posts 58% YOY revenue decline in first half
At $10.8 billion, ocean carrier Hapag-Lloyd AG’s first-half 2023 revenue represented a 58% decline from first-half 2022’s $18.5 billion, the company announced on Aug. 9.
Profit fell $6.3 billion, from $9.5 billion to $3.1 billion, a 67% drop-off. Transport volumes declined year-over-year to 5,807 twenty-foot equivalent units (first-half 2022’s total: 6,012 TEUs) “primarily owing to lower demand for container transports on the Far East and European trade routes to North America,” officials for the Hamburg, Germany-based company said.
“Weaker demand and lower freight rates are having a very noticeable impact on our earnings,” said Hapag-Lloyd CEO Rolf Habben Jansen. “In a challenging market environment, we can look back on a successful first half year overall, in which we were able to expand our terminal portfolio while also significantly boosting our customers’ satisfaction thanks to our focus on quality.”
Taiwan: Yang Ming logs Q2 net loss
In the second quarter, Yang Ming Marine Transport Corp. posted consolidated revenue of $1.15 billion and an after-tax net loss of $4.27 million, the company announced on Aug. 11.
For the year’s first half, Yang Ming recorded revenue of $ 2.36 billion and after-tax net profit of $107.04 million.
“The maritime industry in the first half of the year was impacted mainly by inflation and uncertainty in the global economy,” said officials of the company, which is based in Keelung, Taiwan. “Additionally, freight rates declined compared to the same period last year, leading to a decrease in revenue compared to the corresponding period last year.”
Meanwhile, “momentum for economic recovery over the next two years still appears relatively weak,” Yang Ming officials said.
India: Government approves more than $3 billion in freight rail projects
Last week, India’s Cabinet Committee on Economic Affairs (CEA) approved seven Indian Railways freight projects with a combined estimated cost of Rs. 32,500 Crore (more than $3 billion), with 100% funding from the central government.
The projects, which cover 35 districts in nine states, will increase the existing network of Indian Railways by 2,339 kilometers.
“These are essential routes for transportation of varied basket of commodities such as food grains, fertilizers, coal, cement, fly-ash, iron and finished steel, clinkers, crude oil, lime stone, edible oil, etc.,” CEA officials said in an Aug. 16 press release. “The capacity augmentation works will result in additional freight traffic of magnitude 200 million tons per annum.”
CEA officials didn’t provide a timetable for the projects.
Guinea: Rio Tinto reaches rail agreements for iron ore mine
London-based Rio Tinto Group and the Simfer joint venture reached agreements with the Republic of Guinea and Winning Consortium Simandou on the trans-Guinean infrastructure for the Simandou iron ore project, the company announced on Aug. 11.
The agreements pave the way for the co-development of more than 600 kilometers of new multi-use rail together with port facilities that will be used to export iron ore from the Simandou mining concessions in southeast Guinea.
Said Bold Baatar, Rio Tinto executive committee lead for Guinea and copper chief executive: “Simandou, the world’s largest known undeveloped supply of high-grade, low-impurity iron ore, will strengthen Rio Tinto’s portfolio by complementing our existing Pilbara and Iron Ore Company of Canada products.”
Rio Tinto explores, mines and processes mineral resources worldwide. The company also owns and operates open pit and underground mines, refineries, smelters and concentrator facilities, as well as power stations, research and service facilities.
Qatar: QTerminals to acquire majority stake in Kramer Group’s Port of Rotterdam operations
Qatar-based QTerminals Group signed an agreement to container handling and storage, terminal, and logistics services provider Kramer Group, QTerminals announced on Aug. 15. Terms weren’t disclosed.
Based in the Port of Rotterdam, the Netherlands, Kramer Group is “the only independent terminal in the Maasvlakte area, and one of the few multi-user depot terminals in the port,” QTerminals officials said. Kramer operates six terminals, five of which are at the Maasvlakte and one at the Eem-Waalhaven; it offers trimodal transport options via rail, water and road.
World oil demand reaching record highs — IEA report
“World oil demand is scaling record highs, boosted by strong summer air travel, increased oil use in power generation and surging Chinese petrochemical activity. Global oil demand is set to expand by 2.2 mb/d to 102.2 mb/d in 2023, with China accounting for more than 70% of growth. With the post-pandemic rebound running out of steam, and as lackluster economic conditions, tighter efficiency standards and new electric vehicles weigh on use, growth is forecast to slow to 1 mb/d in 2024.” — The IEA Oil Market Report, issued earlier this month by the International Energy Agency. Created in 1974 to help coordinate a collective response to major disruptions in the supply of oil, the IEA also recommends policies that enhance the reliability, affordability and sustainability of energy.
U.K.-U.S.: cargo-partner unveils airfreight service
On Aug. 8, cargo-partner announced it had introduced an air freight consolidation service with weekly departures from Chicago to London. The company provides weekly departures, with an in-house team of trade experts overseeing the service. he goods are routed by air from Chicago O’Hare International Airport via Toronto Pearson International Airport and on to the final destination of London Heathrow Airport.
