(Central News Agency reporter Lai Yanxi, Taipei, December 9, 2022) Although the latest Shanghai Export Container Index (SCFI) fell less than the previous week, it has fallen for 25 consecutive weeks. The international freight rate is sluggish, and the revenue of the three container companies Evergreen, Yangming and Wanhai in November has simultaneously declined by more than 10% compared with October; Wanhai also announced the sale and dismantling bid of old ships, requiring buyers to send the ships directly to environmentally friendly shipbreaking yards Disassemble.
The Shanghai Shipping Exchange announced today that the latest SCFI index has fallen for 25 consecutive weeks, but the decline has narrowed to 2.84% compared with the previous week. Among them, the freight rate of the Far East to Mediterranean route has begun to recover, up 0.76% from the previous week.
The sluggish international freight rate affects the performance of Sanxiong Containers in November. Evergreen (2603) said that inflation, the Russian-Ukrainian war, and China’s zero-clearing policy have led to a continuous decline in freight rates. The revenue in November was 36.093 billion yuan, a monthly decrease of 20.93%. An annual decrease of 29.29%; the cumulative consolidated revenue for the first 11 months was 597.998 billion yuan, an annual increase of 36.79%. However, as the recent congestion situation in Hong Kong has gradually eased, it will help save operating costs.
Yang Ming (2609) stated that the continued sluggish market demand led to a drop in freight rates, which led to a 18.25% monthly decrease in November revenue and a 43.13% annual decrease to 19.612 billion yuan; the accumulated revenue for the first November was 359.566 billion yuan, an annual increase of 20.11% . Yang Ming pointed out that although China has gradually loosened its zero-removal policy, the Russia-Ukraine war, energy and inflation crises have continued to weaken the economies and consumer demand of various countries, and the global economic momentum is facing challenges.
Wan Hai (2615) said that sluggish demand has affected ocean freight rates. Revenue in November was 12.988 billion yuan, a monthly decrease of 13.34% and a yearly decrease of 43.27%. The cumulative revenue for the first November was 247.41 billion yuan, an annual increase of 20.83%.
In response to the addition of the new fleet, Wan Hai announced a bid on the 8th, with the receipt date ending on December 16, and asked the buyers of these 10 ships not to put the ships into market operation, but to send the ships directly to the Green The ship breaking yard directly carries out the dismantling.
Looking forward to the future market of shipping, Evergreen believes that it is still necessary to wait and see the inventory situation of customers before the Lunar New Year and the demand for shipments; Yang Ming pointed out that some port terminal operations continue to be affected by strikes caused by inflation and labor issues, and the US West Terminal and the railway labor negotiations Progress remains stalemate, adding uncertainty to the return of supply chains to normal.