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Venus Steamship launches new Asia-South Africa route, four news stories

  • Author:Alvin
  • Source:HKSG-GROUP
  • Release Date:2018-05-03

Shipping Newsletter featured news sections, presenting you with daily logistics focus news: OOCL's shipment volume in the first quarter increased by 7.5% in the first quarter of 2018; revenue rose by 16.3%; Japan's three major shipping companies lost two in 2017; and the Venus ship opened. New Asia-South Africa route; Ningbo Zhoushan Port net profit of 749 million yuan in the first quarter of 2018.

OOCL's shipment volume in the first quarter increased by 7.5% in 2018 and revenue rose by 16.3%

OOCL announced its first quarter operating summary for 2018. The report shows that as of March 31, 2018, OOCL’s revenue increased by 16.3% to US$1.38 billion, and the average revenue per TEU increased by 8.3% year-on-year.

In the first quarter of this year, the total cargo volume increased by 7.5% compared to the same period of last year to 1.58 million TEUs. The carrying capacity increased by 16%, and the overall load factor decreased by 6.4% year-on-year.

In the first quarter of 2018, the volume of shipments of the Pacific route increased by 16.3% to 457,000 TEUs, the volume of cargo on Asian/Europe routes increased by 20.5% to 303,000 TEUs, and the volume of cargo on the Atlantic routes increased by 2.2% to 103,000. In the TEU, shipment volume in Asia/Australasia and Asia routes decreased by 1.1% to 716,000 TEUs.

In terms of total revenue, the revenue of the Pacific route in the first quarter was US$530 million, an increase of 19.2% year-on-year; the revenue of Asian/Europe routes was US$280 million, an increase of 23.8% year-on-year; the revenue of the Atlantic route was US$120 million, a year-on-year increase. This was an increase of 1.9%; Asia/Australia/Australasia service revenue was US$450 million, up 13.0% year-on-year.

Japan's three major shipping companies lose money in 2017

Japan's three major shipping companies - Japan Post, Mitsui Merchants, and Kawasaki Steamboat - also announced their financial results for the 2017 fiscal year (April 1, 2017 to March 31, 2018). Among them, Mitsui, a merchant vessel, suffered a loss of 446 million U.S. dollars due to the reorganization and consolidation operations, and the other two companies achieved profitability. The three companies' main business performed well.

Japan's net shipping profit of 185 million U.S. dollars

Due to the improvement of the shipping market and the dry bulk shipping market, Nippon Yusen achieved a net profit of JPY20.1 billion (approximately US$185 million) in fiscal year 2017 and a loss of JPY265 billion in the previous year. In addition, operating income increased from 1.9 trillion yen to 2.1 trillion yen (about 19.2 billion US dollars) during the reporting period.

Consolidation, Japan Post said that the trans-Pacific market performed better, but due to the entry of super-large capacity, the current freight rate stagnated. In addition, the supply and demand situation in the European market improved during the first half of the year and slowed down in the second half of the year.

Nippon Yuki also specifically mentioned that it has made the use efficiency of 14,000 TEU ships more efficient by continuously increasing the cargo loading rate and controlling the operating costs.

Kawasaki Steamboat Net Profit $95.4 Million

As the freight rate picked up, Kawasaki Motors earned 10.4 billion yen (approximately US$ 95.4 million) in fiscal year 2017. During the period, operating income increased by 12.8% to 1.16 trillion yen and operating profit was 7.2 billion yen. Kawasaki Motors also stated that due to the restructuring of ONE, the related costs incurred were about 4.1 billion yen.

The operating profit of the container transportation business was 3.4 billion yen (approximately US$31.1 million); operating income increased by 15% to 5,985 billion yen, which was mainly attributable to the increase in cargo volume and freight rates. In terms of dry bulk, tanker and automobile transportation business, the operating profit was 3.2 billion yen (about 29.35 million US dollars); operating income increased 14% to 521.2 billion yen.

Kawasaki Motors said that the dry bulk shipping market maintained its recovery trend. At the same time, the fleet of tankers will be updated through the ship replacement plan.

Merchant ship Mitsui lost $446 million due to restructuring

Merchant ship Mitsui said that due to the restructuring of the container shipping business, the company had a total loss of 47.3 billion yen (approximately US$446 million) in FY2017. These losses include the loss of renting the ship to the new consignment ONE, as well as the loss of cleaning up of the company's organization and other expenses during the reporting period. In addition, operating income during the period was 1.65 trillion yen (approximately $15.5 billion).

However, after deducting the restructuring losses, the shipping and bulk shipping business of Mitsui of the merchant ship performed well. Operating profit was 2.8 billion yen (about 26.66 million US dollars), while the previous fiscal year was a loss of 27.4 billion yen.

In terms of container shipping business, the volume of Asia-Europe shipping routes has picked up, but due to the influx of large ships, the current freight rates have been suppressed. In addition, due to the rebound in Brazil's economy, the volume of Asian-South American East Coast routes also picked up. For dry bulk shipping, Capesize and Panamax boats have benefited from strong transportation demand and have performed well.

The company’s Mitsui expects that dry bulk cargo shipments in the new fiscal year will continue to grow due to the strong demand for iron ore in China and the increase in grain shipments from South America. The company expects to make a profit of 30 billion yen (about 275 million U.S. dollars) in the new fiscal year.

Venus launches new Asia-South Africa route

The Hong Kong shipping company Gold Star Line announced that it will launch a new Asian-Southeast Asia-South Africa weekly service route (SA1) on May 7, 2018 to meet the service needs of Africa.

The SA1 route has a shipping cycle of 63 days and deploys eight 3,300 TEU container ships. The Venus Steamship will also provide multimodal transport services via Durban to the inland areas of South Africa to reach the agricultural and industrial areas of the country.

According to Danny Hoffmann, managing director of Venus Steamships, “Venus has rich experience in the African market. With South Africa's closer trade links with Northeast Asia and Southeast Asia, we believe the new route has great potential.”

Venus said that the company has always wanted to develop South Africa's fruit export market to Asia. To this end, the company plans to use Hong Kong as a direct port of call and provide cold storage services.

It is reported that the order of ports on the SA1 route is: Newport → Qingdao → Shanghai → Ningbo → Nansha → Singapore → Klang Port → Durban → Port Elizabeth → Port Klang → Hong Kong → Xingang.

Ningbo Zhoushan Port net profit of 749 million yuan in the first quarter of 2018

Ningbo Zhoushan Port recently released the financial report for the first quarter of 2018. The company achieved operating income of RMB 5.087 billion (RMB ‧ at the same time) in the first three months of this year, an increase of 33.24% over the same period of the previous year; and net profit attributable to shareholders of the listed company was 7.49 Billion yuan, an increase of 9.82% over the same period last year.

According to data from the China Business Industry Research Institute, in the first quarter, the economy of Ningbo City was generally stable and started well. The industry grew steadily, the demand was generally stable, the structural adjustment continued to be optimized, the emerging kinetic energy continued to grow, the quality and efficiency improved steadily, and the people’s livelihood continued to improve. According to preliminary calculations, Ningbo achieved a GDP of RMB 235.14 billion in the first quarter, which was calculated at a comparable price and grew by 7.6% year-on-year, which was faster than the national 0.8 percentage point, and faster than the province's 0.2 percentage point. In terms of sub-industries, the primary industry achieved an added value of 5.65 billion yuan, an increase of 1.7%; the secondary industry achieved an added value of 124.53 billion yuan, an increase of 8.0%; the tertiary industry achieved an added value of 104.96 billion yuan, an increase of 7.5%. The ratio of the three industries was 2.4, 53.0, and 44.6. The contribution rates of the first, second, and tertiary industries to GDP growth were 0.6%, 56.2%, and 43.2%, respectively.

In addition, in the first quarter, the container throughput of Ningbo Zhoushan Port was 6.501 million TEUs, an increase of 10.6%, 1.6 percentage points higher than the same period of last year, of which Ningbo Zhoushan Port Container throughput was 6.15 million TEUs, an increase of 9.1%, 0.3% higher than the same period of last year. Percentage. In the first quarter, Ningbo's cargo turnover increased by 27.4%, which was an increase of 12.0 percentage points from the same period of last year.

Shen Wanhongyuan shipping analyst previously said in the report that after the substantial integration and integration of Ningbo Zhoushan Port was completed, the port integration process in the province steadily progressed, with Ningbo Zhoushan Port as the main body, southeastern Zhejiang coastal port and northern Zhejiang The port development pattern of “one body, two wings and multiple joints” is a two-wing development that links the Hangzhou Bay port with the joint development of the Yiwu dry port and other inland ports. The integration of anchorage resources in each port area has steadily progressed. Beilun First Container Terminal Co., Ltd. was officially established and operated. The integration plan for Meishan Port Area was basically completed, which is conducive to the orderly development of Ningbo Zhoushan Port business.

Drewry expects the dry bulk charter market to perform well in the coming months, supported by a steady iron ore and grain trade. In the short term, with the recovery of summer construction activities, China’s steel demand will increase, which will increase iron ore trade. On the other hand, demand in Asia, Africa and Europe will drive the increase in grain trade in the short term. China announced a 25% tariff on imported soybeans in the United States. In the long run, this policy will promote China's soybean imports from Brazil and Argentina, thereby increasing the demand for tons of sea on the trade route.