ROBUST peak season demand on key east-west and intra-Asia trades that kept vessel utilisation levels high and helped container shipping lines hold on to part of the freight rate hikes introduced in the third quarter resulted in a 3.3 per cent improvement in the carriers' average Q3 operating margins.
Based on the third quarter results of the 15 leading ocean liners, operating margins were also boosted by an average six per cent year-on-year decline in bunker costs in the third quarter.
Cost cutting has also borne fruit, as several shipping lines cited improved network and vessel efficiencies that have helped to lower their respective unit operating costs.
Despite these positive trends, three out of the 15 carriers surveyed by Alphaliner reported negative operating results for the third quarter.
Negative margins were reported by Hyundai Merchant Marine (HMM), CSAV and MOL.
Several carriers were able to reverse their operating losses in the third quarter, including Yang Ming, Hanjin Shipping, CSCL and Zim, which all reported positive operating results for their latest financial quarter.
Although Israeli shipping line Zim posted a net loss of US$65 million, as it incurred a one-time net restructuring charge of $45 million, the shipping line managed to record a positive core operating profit of $14 million, its first positive quarterly result in eight quarters.
CMA CGM's net profit jumped to $201 million in the third quarter, compared to $70 million in 2013 mainly due to lower interest expenses and $65 million of foreign currency exchange gains.
The improved results come despite a slightly weaker operating performance with core operating profits of $248 million for the third quarter, compared to $271 million in the same quarter last year.
This is despite the French shipping line's liftings rising 8.3 per year on year to 3.2 million TEU, while average freight rates fell 1.8 per cent over the same period.
Maersk and Wan Hai Lines once again remained the most profitable carriers, with core operating margins of 10.1 per cent and 9.7 per cent, respectively.
WORLD SHIPPING
28 November 2014 - 12:28
12 out of 15 of major ocean carriers see good results in third quarter
ROBUST peak season demand on key east-west and intra-Asia trades that kept vessel utilisation levels high and helped container shipping lines hold on to part of the freight rate hikes introduced in the third quarter resulted in a 3.3 per cent improvement in the carriers' average Q3 operating margins.
WORLD SHIPPING
28 November 2014 - 12:28
12 out of 15 of major ocean carriers see good results in third quarter
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