The shipping industry continues to make great profits

In the first quarter of the year, Hai An Transport and Handling Joint Stock Company (HAH) recorded a profit of more than 260 billion VND, completing more than half of the year plan. This number increased more than 3 times compared to the same period last year and approached the record profit of the previous quarter.

Also with an increase in profit by times, in the first quarter, Vietnam National Shipping Lines (Vinalines – MVN) doubled its profit compared to the same period in 2021, reaching nearly VND 690 billion. And Gemadept Joint Stock Company (GMD) recorded a profit increase of about 1.85 times to nearly 320 billion dong. Particularly, Vinaship Shipping Joint Stock Company (VNA) has a sudden increase in profit of 12.5 times, but the absolute number is still small compared to many enterprises in the same industry, just over 40 billion dong…

Rising demand and favorable movements of freight rates continue to be the support for profits for many businesses this sector.

According to Vinaship, market demand since the Lunar New Year has increased, the BDI index (Baltic dry cargo chartering index, which assesses the rental fee for transporting raw materials such as iron ore, coal, cement, etc.) cereals… globally) from 1,400 to 2,700 points.

Statistics of the Vietnam Maritime Administration show that the total volume of goods through the seaport in the first quarter of the year was estimated at 179.6 million tons, up 4% over the same period last year and reaching a quarter of the year plan. In which, container cargo continued to increase by 6%, reaching nearly 6.3 million TEUs.

In addition, rising freight rates also contribute to creating favorable conditions for the shipping industry. Hai An said that in the first quarter of 2022, domestic freight rates increased and ship rental prices also increased sharply.

Freight rates to countries in Southeast Asia range from 1,600-5,300 USD per container, depending on distance and shipping line. Freight to the US is up to 12,000-22,000 USD per container, depending on the East or West coast…

In the context of many geopolitical and economic fluctuations in the world, sea freight rates are forecasted to continue to stay high. BIDV Securities (BSC) believes that the China’s blockade Some big cities will bring positive impacts to Vietnam’s shipping industry.

China plays an important role in international trade and commerce. Therefore, the limited production activities and the reduced operating capacity of the port system in this country will lead to prolonging the disruption of the global logistics chain. Congestion of the port system and prolonged waiting time for docking may lead to an increase in freight charges, thereby positively affecting the group of Vietnamese shipping enterprises.

Tensions at Ukraine is also a factor that can positively affect the profit of this industry in the coming time. According to BSC, Russia is a major oil producing country with current supply accounting for 10% of global demand. Disruptions to oil exports from the country and the operation of pipelines in Northern Europe will tighten and shortfall global supply, pushing up oil prices. Shipowners have the ability to pass costs on to customers to secure operating margins.

On the stock market, shipping stocks from the beginning of the year until now have been quite optimistic. During the period of geopolitical tension at the beginning of March, many shipping stocks “turned upstream” to record ceiling gains, especially large enterprises.

Closing the session on May 10, the GMD ticker reached a market price of 55,000 dong per unit, an increase of more than 15% compared to the beginning of the year. With the second best business growth in the industry, from the end of April until now, the ticker HAH has almost stood up, closing the session on May 10 with 85,000 dong per share, an increase of more than 77% compared to the beginning of the year. …

Siddhartha