Ocean freight is down more than 80% from the peak, large enterprises in the industry still set profit records in 2022.

Hai An Transport and Unloading Company (HAH), PetroVietnam Transportation Corporation (PVTrans – PVT) and Vipco Petroleum Transport Company (VIP) all reported record high profits. Hai An last year had more than 1,050 billion dong of after-tax profit, an increase of more than 90% compared to 2021. Oil transportation is the main thing, PVTrans still has a profit of more than 1,160 billion dong, up 39%. Particularly, Vipco’s profit after tax increased by nearly 25 times, to 246 billion dong.

Other businesses also recorded positive business results. The “big man” of ports and ships Gemadept (GMD) recorded more than VND 1,150 billion in profit after tax, an increase of more than 60%. This is the second highest profit since this company announced information in 2000, just behind 2018 (this year GMD received a large profit from capital transfer in subsidiaries).

With a smaller scale, Vietnam Shipping Company (Vosco – VOS) also reported a profit of nearly 490 billion dong last year. This is a slight decrease of 0.4% compared to 2021, but is still the second largest profit since the listing. Similarly, the “big brother” of the maritime industry Vinalines (MVN) lost nearly 23% of its profit last year. But the profit of more than 2,500 billion VND is also the second largest since the announcement in 2015.

According to data from Freightos – one of the world’s largest freight booking platforms, the cost of sending a container from Asia to the US at the end of the year has fallen by more than 80% from the peak during the epidemic season. Particularly in December 2022, the freight to the East coast was under $3,000 per 40-foot container, while the West coast price was below $1,500. Meanwhile, in the third quarter of 2021, sea freight from Asia to the US set a record of over $20,000 per 40-foot container.

However, thanks to the good exploitation of the fleet, including new purchases, control of fuel costs, repair and operation…, businesses still recorded growth in the shipping business. Gemadept’s gross profit from port operation and logistics increased by more than VND 500 billion, while Vosco announced to sign a new contract at a good price.

The increase in demand when economic activity is connected after the epidemic is also the cause. According to data from the General Statistics Office, in 2022, sea freight transport reached more than 399.5 million tons, an increase of about 27% over the same period last year.

However, freight rates may no longer be a factor that the maritime industry will continue to benefit from this year. “The party is over,” Rolf Habben Jansen, CEO of Hapag Lloyd – the world’s fifth-largest carrier by capacity, told Reuters about the industry’s prospects. According to him, sea freight rates will decrease but not below the cost of capital. Therefore, shipping lines will return to normal operations without hot growth. Rates this year will depend heavily on charter rates, fuel costs and the need to adjust the fleet to run on low-carbon fuel…

In a recent report, VNDirect said that the global port and shipping industry will face many difficulties due to the economic downturn, which negatively affects trade activities as well as transport output. The impact of the reduction in sea freight rates can clearly affect the business results of Vietnamese shipping lines in the period of 2023-2024.

However, there are still a few positive supporting factors such as the container shortage has been resolved thanks to additional container supply in 2022, China is reopening which will boost global trade and consumption. In addition, this unit forecasts the average Brent oil price to remain at $90 per barrel, helping to reduce fuel costs for businesses.

Source: VnExpress