ALL shipping lines' revenues fell sharply year on year (YoY) in 2023, ranging from 46.6 per cent to 62.6 per cent, according to Sea-Intelligence.
However, the annualized revenue growth rate in 2023-FY is consistent with 2018-2019, implying that the high YoY revenue decrease in 2023-FY is a result of the anomalous revenue growth of 2021-2022, rather than a fundamental revenue loss in 2023, reports London's Port Technology.
ZIM, Yang Ming and Wan Hai all reported EBIT losses in fiscal year 2023. While four shipping lines reported EBIT of more than US$1 billion, Sea-Intelligence noted that it is apparent that profitability levels are nowhere near those in 2021-2022.
EBIT per TEU is one method for visualizing profitability. Alan Murphy, CEO of Sea-Intelligence, pointed out that EBIT/TEU data is available for five shipping lines so far, with COSCO and OOCL yet to publish, and CMA CGM no longer publicly disclosing EBIT figures.
He noted that Maersk's EBIT/TEU stands at 94 US$/TEU, notably lower than the figures for 2021-2022 but still surpassing most pre-pandemic years. In contrast, Hapag-Lloyd's figure of 235 US$/TEU marks its highest outside of the 2021-2022 period.
Regarding ONE, there isn't a pre-pandemic reference point available. However, HMM's 2023-FY EBIT/TEU of 119 US$/TEU, although lower than in 2020, reflects an improvement throughout 2011-2019 when they faced consistent losses.
ZIM recorded an EBIT/TEU loss of -765 US$/TEU, attributed to a 'non-cash impairment loss of $2.06 billion recorded in the third quarter.'
Recently, Sea-Intelligence reported a steady 20 per cent increase in empty container volumes in recent months compared to 2019 - excluding pandemic fluctuations.
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However, the annualized revenue growth rate in 2023-FY is consistent with 2018-2019, implying that the high YoY revenue decrease in 2023-FY is a result of the anomalous revenue growth of 2021-2022, rather than a fundamental revenue loss in 2023, reports London's Port Technology.
ZIM, Yang Ming and Wan Hai all reported EBIT losses in fiscal year 2023. While four shipping lines reported EBIT of more than US$1 billion, Sea-Intelligence noted that it is apparent that profitability levels are nowhere near those in 2021-2022.
EBIT per TEU is one method for visualizing profitability. Alan Murphy, CEO of Sea-Intelligence, pointed out that EBIT/TEU data is available for five shipping lines so far, with COSCO and OOCL yet to publish, and CMA CGM no longer publicly disclosing EBIT figures.
He noted that Maersk's EBIT/TEU stands at 94 US$/TEU, notably lower than the figures for 2021-2022 but still surpassing most pre-pandemic years. In contrast, Hapag-Lloyd's figure of 235 US$/TEU marks its highest outside of the 2021-2022 period.
Regarding ONE, there isn't a pre-pandemic reference point available. However, HMM's 2023-FY EBIT/TEU of 119 US$/TEU, although lower than in 2020, reflects an improvement throughout 2011-2019 when they faced consistent losses.
ZIM recorded an EBIT/TEU loss of -765 US$/TEU, attributed to a 'non-cash impairment loss of $2.06 billion recorded in the third quarter.'
Recently, Sea-Intelligence reported a steady 20 per cent increase in empty container volumes in recent months compared to 2019 - excluding pandemic fluctuations.
SeaNews Turkey
