EARNINGS reports from Asia in the first half of the year revealed the ongoing financial strain from the red Sea crisis, reports Bloomberg News.
Export manufacturers are facing mounting costs, while transport companies benefit from rising freight rates.
Containerships are steering clear of the Red Sea to avoid potential attacks, cutting vessel traffic in the area by about 70 per cent from December to mid-July, according to Bloomberg Intelligence.
This diversion has led to longer transit times and increased freight rates.
Chinese shipping companies, like Cosco Shipping Holdings, saw profits rise, driven by higher revenues in their container shipping operations.
Similarly, Orient Overseas International Ltd reported improved performance on its transpacific trade routes, where supply chain constraints pushed up freight rates.
On the other hand, manufacturers like Miniso Group Holding Ltd. are being hit hard by escalating logistics costs.
Dixon Technologies India Ltd, a supplier to Xiaomi Corp, reported squeezed profit margins due to expensive freight, while motorbike manufacturer TVS Motor Co noted that exports are experiencing prolonged shipping times.
'The container liner industry and the supply chain it connects are being buffeted once again, this time by the prolonged crisis in the Red Sea,' said Bloomberg Intelligence analysts Lee A Klaskow and Kenneth Loh.
'The near-term result has been a surge in container rates and liner earnings.'
SeaNews Turkey
Export manufacturers are facing mounting costs, while transport companies benefit from rising freight rates.
Containerships are steering clear of the Red Sea to avoid potential attacks, cutting vessel traffic in the area by about 70 per cent from December to mid-July, according to Bloomberg Intelligence.
This diversion has led to longer transit times and increased freight rates.
Chinese shipping companies, like Cosco Shipping Holdings, saw profits rise, driven by higher revenues in their container shipping operations.
Similarly, Orient Overseas International Ltd reported improved performance on its transpacific trade routes, where supply chain constraints pushed up freight rates.
On the other hand, manufacturers like Miniso Group Holding Ltd. are being hit hard by escalating logistics costs.
Dixon Technologies India Ltd, a supplier to Xiaomi Corp, reported squeezed profit margins due to expensive freight, while motorbike manufacturer TVS Motor Co noted that exports are experiencing prolonged shipping times.
'The container liner industry and the supply chain it connects are being buffeted once again, this time by the prolonged crisis in the Red Sea,' said Bloomberg Intelligence analysts Lee A Klaskow and Kenneth Loh.
'The near-term result has been a surge in container rates and liner earnings.'
SeaNews Turkey
