Samudera Shipping appears to have missed out on the recent rally in container freight rates, after posting a hefty fall in first-half profit.
The Singapore-listed shipowner reported an interim profit of just over $21m, versus the $66.3m achieved in the corresponding period last year, a decline of over 68%.
Revenue for the company was down 27% to $222.9m, partially offset by a nearly 20% year-on-year reduction in costs to $194.5m.
Samudera attributed the decline in costs to a combination of lower third-party slot purchases and a decrease in charter-hire costs following the renewal of certain chartered vessels.
Samudera said revenue at its container segment in the first half of this year was $202.5m, against the $290.9m achieved 12 months ago.
“The decline was mainly due to a decrease in freight rates and lower container volume handled, compared to the first half of 2023,” the shipowner said.
Samudera said the average revenue per teu for the first half of the year was $230, against the $323 per teu seen in the first half of last year.
Global boxship freight rates have increased threefold since the end of 2023, as ships avoid the Red Sea and create container ship supply-demand tightness.
Many of the big liner companies such as Maersk, NYK Line and K Line have revised their profit estimates upwards significantly for the first half of this year.
Looking ahead, Samudera said the outlook for the container shipping industry remains challenging, amid continued port congestions and disruptions to vessel schedules in the region, as liners continue to bypass the conflict in the Red Sea.
However, it added that the current market freight rates were showing an uptick, and this should be positive for the group.
Samudera said it will be taking delivery of two container newbuildings in the second half of 2024, as part of its fleet rejuvenation effort to improve operating and cost efficiencies.
