Profits of many shipping companies in Vietnam grew by double digits after half a year, reaching the target of the whole year due to high anchorage freight rates.
In the second quarter of 2022, Gemadept Joint Stock Company (GMD) recorded a profit after tax of more than 334 billion VND, up 87% over the same period last year. That is the company's highest profit since the second quarter of 2018. After 6 months, Gemadept has completed nearly three-quarters of the full-year profit plan.
Similarly, Hai An Transport and Unloading Joint Stock Company (HAH) achieved a profit of more than 324 billion VND, 3.3 times higher than the same period in 2021. That is a record level from the third quarter of 2014 up to now. Hai An also exceeded the target profit after tax for the whole year by about 7% after only 6 months.
Vietnam National Shipping Lines (Vinalines - MVN) also set a profit record of more than 1,434 billion VND in profit after tax, up 95% over the same period. Vinalines completed more than 84% of the year's profit plan. Thanks to the soaring profit, the company's accumulated loss decreased by nearly 36% to more than 2,600 billion VND.
After several quarters of losses, Vietnam Shipping Joint Stock Company (Vosco - VOS) has begun to recover since the middle of 2021. In the second quarter of 2022, the company's profit after tax was 260 billion VND. Although it only increased by about 7.5% over the same period, this is still Vosco's highest quarterly profit in nearly 14 years. The company is only about 6% from the full year profit target.
Even PetroVietnam Transportation Joint Stock Corporation (PVTrans - PVT), whose profit after tax went back 16% due to a lack of financial revenue and fleet investment, its main business still recorded positive growth. The company's gross profit reached more than 440 billion VND, the highest level since this company announced information in the first quarter of 2007. Profit after tax decreased, but only about 4% from the full year profit plan.
Shipping enterprises in Vietnam have been benefiting greatly from high freight rates. Bao Viet Securities (BVSC) compiled data from Bloomberg, showing that the world's container freight rate index in the second quarter decreased from about 10,000 USD at the beginning of the year to around 8,000 USD per 40-foot container, but still 4 times higher than the same period in the 2019-2020 period.
Freight rates keep pace with rising fuel prices. Since the beginning of the year, the price of Brent crude oil has increased by nearly 46%, reaching over 110 USD a barrel at the end of June. The first half of the year had many factors driving the rise in oil prices. The main ones are the Russia-Ukraine geopolitical conflict and the US and EU sanctions against Russia, causing unpredictable impacts on the energy market. In addition, the lack of supply due to the global economic recovery is also the main reason for the booming oil price.
The current high freight rates are expected to be gradually adjusted due to reduced demand and increased supply. According to analysts, that adjustment will take a long time. Rates will decrease eventually but remain high in the second half of 2022.
Assessing the prospects of the container shipping industry in the second half of 2022 and 2023, an expert from SSI Securities Joint Stock Company believes that supply chain disruption will continue in 2022.
The problem of congestion at US and European ports cannot be resolved before 2023 since bottlenecks still occur in many stages of the supply chain, including a lack of berths, trucks, warehouses, and even workers.
In addition, port infrastructure needs time to adapt to larger, newly built vessels before the congestion is resolved. Global shipping depends heavily on China and its "Zero COVID" strategy.
SSI believes that congestion will gradually improve in the second half of 2023, when COVID-19 prevention measures are lifted in most markets, including China.
SSI believes that freight rates in the international market will gradually return to normal. The current high freight rates will gradually adjust due to reduced demand and increased supply.
Source: vnexpress, vietnamplus
Compiled by VietnamCredit