Tai Hua Holdings (2636-TW) Today (7) the shipping industry took the lead in announcing the consolidated revenue in November, which reached 1.412 billion yuan, a monthly decrease of 10.78% and an annual decrease of 61.63%. The new low reflects the impact of the ocean freight rate falling back to the starting point.
Tai Hua’s consolidated revenue in the first 11 months was 26.989 billion yuan, a year-on-year decrease of 17.17%.
Tai Hua explained that the demand in the overall shipping market is weak, and the freight rate continues to decline. Convergence, although the US East route fell, but still maintain a relative profit margin.
Especially since the end of November, the volume of goods on European lines has been opened one after another, and the freight rate has stabilized. The online spending of American consumers on Black Friday this year has also reached a record high of 9.12 billion US dollars, which is higher than the level of the past two years. Digestion, the demand for daily necessities shows signs of gradual increase.
However, Taihua does not deny that due to the uncertain economic outlook next year, the growth rate of the supply of shipping capacity is expected to be higher than the demand, but the delivery of new ships will not be completed in one step. Therefore, the increase in supply is actually not as serious as the outside world predicts, and the implementation of new regulations on environmental protection of ships , will eliminate a certain percentage of old ships.
Tai Hua believes that the outlook of the shipping market will be more difficult to predict due to many uncertainties such as inflationary pressure, weak demand, geopolitical factors, supply chain changes, China’s continuous zero-clearing policy, congestion relief, and increased shipping capacity.
On the other hand, Tai Hua pointed out that the air cargo market continues to shrink, but the recovery of air freight capacity has stalled. According to Xeneta, the available belly and cargo space is still 7% lower than the level before the epidemic. Shortages limit the productivity of flights and warehouses, and overall air freight rates have not fallen as sharply as sea freight rates.
However, air freight rates are still not expected to increase as export cargoes will shift to ocean freight services with abundant space and cheap freight rates.