Many shipping stocks ‘run’ on the sidelines of opportunities

The price of shipping services has increased continuously in recent years, but not all businesses in this industry benefit.

Container charges increased more than 4 times According to Drewry World, the container freight rate announced on May 27, 2021 for a 40-foot container from Shanghai (China) to Rotterdam (Netherlands) has increased to USD 10,174, up 3.1% from a week earlier and up 485% from a year ago. The global container freight rate index (which includes eight major routes) was up 2%, to $6,257 from a week earlier and 293% higher from a year ago. Freight rates are at their highest levels since 2011. Container freight rates are rising because demand is outstripping supply due to a shortage of 20- and 40-foot containers. In the context of consumer demand and the price of basic raw materials, commodities increased sharply, leading many businesses to increase stockpiling of goods, disruption from the congestion of the Suez Canal at the end of March 2021. Port congestion is causing delays and higher costs for shippers, while ocean carriers enjoy sky-high profits. According to the chairman of a seafood processing company, it is estimated that the freight rate of container ships from Vietnam to Europe has increased more than four times, from 1,700-1,800 USD/container to 7,000-8,000 USD/container compared to before the epidemic occurred. out. Freight rates to the East Coast of the United States have increased more than 1.7 times, from 4,500 USD to 8,000 – 10,000 USD/container. Opportunities are not spread evenly On the listed stock exchange today, the number of enterprises providing shipping services is relatively small. Enterprises such as Hai An Transport and Loading Joint Stock Company (code HAH), PetroVietnam Transportation Joint Stock Corporation (code PVT), Vietnam Shipping Joint Stock Company (code) can be mentioned immediately. VOS)… The shipping market share is still mainly in the hands of foreign enterprises. At PVT, in recent years, the business has continuously pursued a fleet rejuvenation strategy to increase business efficiency, by the end of 2020 owns a fleet of 34 ships. The company operates mainly in the field of transporting crude oil, oil products, transporting LPG…, products related to the parent company is the Vietnam Oil and Gas Group (PVN). Therefore, PVT is not able to decide on freight prices, leading to stable gross profit margin and no growth, although oil prices and freight rates have fluctuated in recent years. At VOS, as of December 31, 2020, the company owns a fleet of 12 ships with a total tonnage of 405,112 dwt, including 8 dry and bulk cargo ships; 2 product tankers and 2 container ships. In addition, the enterprise also periodically leases a number of ships to maintain regular fleet operations of 12-14 ships. VOS’s fleet operates regularly in Southeast Asia, Northeast Asia, West Africa, Australia, South America… However, the disadvantage of VOS is that the fleet is quite old and has not been renewed due to its financial potential. limited, while import-export businesses often require larger shipments and prefer new generation fleets. HAH owns this advantage, when continuously investing in new ships from 2014 up to now. The Company’s fleet includes 8 ships, serving both domestic and international routes. At the shareholders’ meeting in 2021, HAH’s Board of Directors shared that they continue to plan to invest in more fleets to increase the number of domestic flights, and maintain and develop 2 import and export cargo trips to Hong Kong and Singapore. . In the first quarter of this year, HAH recorded revenue of 359 billion dong, profit after tax of 85.5 billion dong, up 28.4% and 174% respectively over the same period last year. Gross profit margin increased sharply from 19.2% to 27%. After the first 3 months of the year, HAH has completed up to 54.1% of the year’s profit plan. The business said that profit growth was positive in the first quarter of 2021 due to the fact that sea transport activities have started with positive signs and increased transportation demand from the last 6 months of 2020. Along with the company’s investment in the HA View vessel in August 2020, the output of Hai An fleet increased by more than 50% compared to the same period last year. The increase in fleet volume leads to an increase in the output of port operations and depots. Besides, the increase in freight rates and the decrease in raw material prices also had a positive impact on profits.