Samudera Shipping Line continues to reap the rewards of the hot container ship market as it posted a four-and-a-half-fold increase in first-half profit.
The Indonesian liner operator saw net income surge to $172.4m versus the $37.9m achieved 12 months earlier, figures just released show.
Revenue at the Singapore-listed intra-Asian operator more than doubled compared to a year ago to $476.2m with the bulk of that coming from its liner business.
Revenue from the container shipping segment rose 131.4% to $464.9m due to more services being operated and higher freight rates.
Container volumes handled increased by 27.1% to 957,000-teu in the first six months of 2022.
The bulk and tanker segment recorded a 31% increase in revenue to $4.1m due mainly to the increase in the employment days of its two existing chemical tankers, and the acquisition of a third vessel in April 2022.
In line with the higher level of shipping activities, cost of services rose by 76.8% to $290.5m from the $164.3m seen in the same period in 2021.
“While demand for container shipping services has stabilised, freight rates are expected to remain higher than prepandemic levels due to the lag in container vessel supply to meet demand,” Samudera said.
“With the potential softening of container trade growth going forward and in view of uncertainties in the global economic environment arising from high inflation and interest rates, the group is mindful of the need to remain nimble and adapt quickly to changes in shipping demand from its customers.
“Charter-hire rates and bunker cost are expected to remain high,” it added.
Samudera said it was growing its presence in the tanker market and will be taking delivery of another chemical tanker in the fourth quarter of 2022.
On Tuesday, the company confirmed the acquisition of the 20,000-dwt chemical tanker Ebony Ray (built 2008) from Idan Ofer’s Eastern Pacific Shipping for $13.85m.
The deal is said to have a three-year time charter to GSB Tankers at $13,750 per day attached to it.
The Ebony Ray was the oldest of five small chemical tankers of around 20,000 dwt in the Eastern Pacific fleet.
