A container ship at Lach Huyen Seaport. (Photo: VNA) According toSSI Securities, exports to large trade partners, including the US and EU,continued to decline in September at Cai Mep Seaport and Lach HuyenSeaport.
Expertsforecast that maritime trade would not reach the figures seenin previous years even in peak seasons because of retailers' highinventory levels.
Forcontainer-shipping firms, the situation is expected to worsen inlate months of the year due to falling freight rates, which haveslipped by roughly 20% domestically since early 2022.
Analyst PhamMinh Quang, BIDV Securities, estimated that international freight rates wouldcontinue to drop by around 12% towards Q1/2023, caused by high inventory levelsand high inflation. Domestic freight rates would follow suit with a drop ofabout 5% amid a slow recovery of vessel supply.
AnalystNguyen Quynh Hoa from MB Securities, shared this view, forecasting thatmaritime trade carried by containers would slow down in short term on groundsof weak demand.
However, theoutlook for the industry would be optimistic in long term thanks to theimprovement of global geopolitical conflicts, the easing of COVID-19preventive measures, and the rebound of container supply.
Imports andexports are projected to pick up in the coming years as a result of thefully implementation of Free Trade Agreements and the lowering of tradebarriers ensuing.
For the timebeing, many maritime transport firms are running at a profit.
VietnamOcean Shipping JSC (HOSE: VOS) made an after-tax profit of 154.1 billion VNDin Q3, down 17% against Q3/2021.
The firmsaid freight rates remained at good levels in the first nine month of 2022despite a volatile market. It won several contracts to transport drycommodities at high freight rates during the period.
"Oil-poweredvessels turned high profits from late Q2, contributing greatly to our totalprofits," said a VOS representative.
Apart fromthe profits generated by its own vessels, the firm also had extraearnings from two oil-powered vessels, Dai An and Dai Phu, chartered since late2021.
Vietnam TankerJSC (HOSE: VTO) raked in 23.8 billion VND after tax in Q3, tenfold as large asthe figure last year.
A VTOrepresentative attributed the boom in profits to "the increase in timecharter rates and in coastal vessel activities compared to Q3/2021".
Remarkably,higher time charter rates contributed nearly 100 billion VND to its revenuesand 25 billion VND to its after-tax profits.
Vinafco JSCorporation (UPCoM: VFC), likewise, saw its after-tax profits increase byroughly 51% during the period. The firm said its profitability came from itsbetter performance in transport and financial activities.
Vinaship JSC(UPCoM: VNA) also operated profitably with an after-tax profit of 63.7 billionVND, down 7% year-by-year.
It is worthnoting that several firms are stepping up seaport development to cater forhigher maritime trade in the long term.
GermadeptCorporation (HOSE: GMD) is in process of completingnecessary procedures to begin the construction of Gemanlink Portphase 2 this year. The port, with an estimated capacity of 1.5 million TEU, isexpected to begin in 2024.
Meanwhile,50% of the construction works in Nam Dinh Vu Port phase 2 has beencompleted. The port have an estimated capacity of between 0.6 million and 1.2million TEU.
VOS stocksended the November 4 session at 9,500 VND, VTO at 7,200 VND, and GMD at 48,700VND./.
VNA
