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Liner profits set to hit new high in Q2, but there are choppier waters ahead - 1 Sept 2022
https://theloadstar.com/liner-profits-se...ers-ahead/
According to the latest HSBC global research report on the global container shipping sector, liner profits are set to plunge by more than 80% from their highs of this year – but it adds it still expects results will be “better than in the past”.
“There are signs that spot rates could fall to pre-pandemic levels swiftly on the widening demand-supply gap,” says the report, “but we maintain that contract rates should settle above their pre-pandemic levels and that capacity discipline will keep spot rates from lingering at trough levels.
“Overall, we expect the sector to remain profitable versus the losses pre-pandemic.”
HSBC is predicting (A) a global container trade decline of 2% this year, and 3% in 2023, before recovering by 2.5% in 2024, compared to (B) capacity growth of 6.2%, 6.5% and 8%, respectively. As a consequence, it is trimming its profit estimates “mainly for 2024, the year we expect the sector to bottom-out”.
I believe (A) refers to the demand and (B) refers to the supply. Not sure if (B) has considered vessel scrapping and the effect of slow steaming/running
PS: I am not able to locate this particular research report.
https://theloadstar.com/liner-profits-se...ers-ahead/
According to the latest HSBC global research report on the global container shipping sector, liner profits are set to plunge by more than 80% from their highs of this year – but it adds it still expects results will be “better than in the past”.
“There are signs that spot rates could fall to pre-pandemic levels swiftly on the widening demand-supply gap,” says the report, “but we maintain that contract rates should settle above their pre-pandemic levels and that capacity discipline will keep spot rates from lingering at trough levels.
“Overall, we expect the sector to remain profitable versus the losses pre-pandemic.”
HSBC is predicting (A) a global container trade decline of 2% this year, and 3% in 2023, before recovering by 2.5% in 2024, compared to (B) capacity growth of 6.2%, 6.5% and 8%, respectively. As a consequence, it is trimming its profit estimates “mainly for 2024, the year we expect the sector to bottom-out”.
I believe (A) refers to the demand and (B) refers to the supply. Not sure if (B) has considered vessel scrapping and the effect of slow steaming/running
PS: I am not able to locate this particular research report.