China News Finance, January 7 (Reporter Xie Yiguan) Recently, a piece of news that "Evergreen Shipping will issue a 40-month monthly salary" was called "too much".

　　Behind such a trench, it benefits from Evergreen Shipping's proud performance.

As the international shipping prices are on the "rocket" this year, shipping companies have made a lot of money.

Data map: Shandong Port Qingdao Port Operation Wharf.

Photo courtesy of Shandong Port

The performance of shipping companies "goes up"

　　According to the revenue data disclosed by Evergreen Shipping, from January to November 2021, Evergreen Shipping’s operating revenue totaled 459.952 billion Taiwanese dollars (approximately 106.384 billion yuan), far exceeding the revenue in the same period in 2020.

　　This is also the epitome of many shipping companies.

In November 2021, Maersk, the world's largest shipping giant, announced its third-quarter financial report, with revenue of US$16.612 billion, a year-on-year increase of 68%.

Among them, the shipping business has revenue of 13.093 billion U.S. dollars, far exceeding the 7.118 billion U.S. dollars in the same period in 2020.

　　Thanks to the dazzling performance, according to foreign media reports, a previous internal document by Maersk indicated that the company will issue bonuses, and about 80,000 employees can receive 1,000 US dollars each, but not including 400 senior executives.

　　The third-quarter results of 2021 announced by another shipping giant, CMA CGM, showed that it achieved revenue of 15.3 billion U.S. dollars and net profit of 5.635 billion U.S. dollars.

Among them, the shipping department's revenue reached US$12.5 billion, an increase of 101% over the same period in 2020.

　　In the high boom of international shipping, it is not only foreign companies that make money.

According to the report for the first three quarters of 2021 released by the leading domestic container transportation company COSCO Shipping Holdings, the net profit attributable to shareholders of listed companies was 67.59 billion yuan, a year-on-year increase of 1650.97%.

In the third quarter of 2021 alone, the net profit attributable to shareholders of listed companies reached 30.492 billion yuan, a year-on-year increase of 1019.81%.

　　Global container supplier CIMC achieved revenue of 118.242 billion yuan in the first three quarters of 2021, a year-on-year increase of 85.94%; net profit attributable to shareholders of listed companies was 8.799 billion yuan, a year-on-year increase of 1161.42%.

One price a day, international shipping prices soared

　　The high performance of shipping-related companies is also taking advantage of the soaring international shipping prices.

　　COSCO Shipping Holdings stated in the third quarter report of 2021 that from January to September 2021, the average value of China Export Container Freight Index (CCFI) was 2398.80 points, an increase of 168.50% compared with the same period of the previous year; the company's container shipping business was completed The freight volume was 20,447,100 TEUs, an increase of approximately 8.03% compared with the same period of the previous year.

With both volume and price rising, overall performance has achieved substantial growth compared with the same period last year.

　　The comprehensive index of China's export container freight rate provided by the Shanghai Shipping Exchange shows that starting from June 2020, the export container shipping freight rate has increased significantly.

In December 2021, the Shanghai Export Container Composite Index, which reflects the spot market, averaged 4,87.07 points, an average increase of 7.1% from the previous month.

Screenshot from Shanghai Shipping Exchange.

　　In addition, the Freightos Baltic Index (FBX) showed that on January 4, the global container freight rate was 9363 US dollars/FEU, a year-on-year increase of about 155.98%.

On September 8, 2021, the global container freight rate once soared to US$11,137.14/FEU.

Take the popular route China/East Asia to the West Coast of North America as an example. On January 4, the container freight rate was US$14,487/FEU, an increase of approximately 267.32% year-on-year.

　　With the skyrocketing ocean shipping prices, some consumers reported that “a 40-foot high cabinet from Yantian Port to Toronto costs nearly RMB 200,000 for ocean shipping.”

Why are the global shipping prices so high?

　　Mei Xinyu, a researcher at the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, told a reporter from Zhongxin Finance that since the second half of 2020, global trade has rebounded, driving up shipping prices, and this rebound is highly concentrated in East Asia, especially China, making China relevant. The sea freight prices have risen even more.

　　From January to November 2021, my country's total import and export volume reached US$5.48 trillion, a year-on-year increase of 31.3%.

It is estimated that in 2021, my country’s imports and exports of goods are expected to reach US$6 trillion, an increase of more than 20%. Compared with 2020, the increase in imports and exports will be approximately US$1.3 trillion, which is equivalent to the total increase in the past 10 years.

　　“In the early days of the new crown pneumonia epidemic, international transportation fell off the cliff. Due to environmental protection and other requirements, the global shipping industry eliminated some old ships, which also affected the later capacity.” Mei Xinyu said. In addition, Western countries have relaxed their monetary policies before. Drive up the prices of goods and services.

Due to the impact of the epidemic, the supply of seafarers is limited, coupled with the presence of speculative factors in the market, further raising the price of shipping.

　　Earlier, Sun Wenjian, spokesperson of the Ministry of Transport and head of the Policy Research Office, responded to the international shipping container market's soaring freight rates, "a box is hard to find", also said that the rebound of overseas epidemics has caused serious congestion in some overseas ports, and the international logistics supply chain Unsmooth, ship operation efficiency and empty container turnover rate have dropped significantly.

The picture shows the busy Xiamen Port.

Photo courtesy of Xiamen Municipal Information Office

Shipping prices may remain high in a short period of time

　　In response to the "skysurge" of shipping prices, in September 2021, maritime regulatory agencies from China, the United States and the European Union held a global shipping regulatory summit.

Subsequently, shipping companies such as CMA CGM and Hapag-Lloyd announced to "freeze" the current shipping prices.

　　Although high shipping prices have "cooled down" in a short period of time, CCFI shows that China's export container freight rates have since risen.

　　High shipping prices have helped increase the profits of shipping companies, but they have suffered a lot of companies with export business.

The reporter combed the information released by listed companies, and when explaining the decline in quarterly performance, many companies mentioned the increase in ocean freight prices.

　　Although ocean shipping prices have become a cost "pain" for many companies, Mei Xinyu predicts that the high global ocean shipping prices will continue for some time.

　　In Mei Xinyu's view, on the one hand, the pattern of concentrated production capacity in East Asia has not changed, on the other hand, the new mutation of the new crown virus has also brought more uncertainty to the epidemic.

In addition, there is a question mark about the degree of monetary tightening by the Federal Reserve.

　　In December 2021, Maersk issued a report showing that in the first quarter of 2022, due to delays in shipping schedules, shipping capacity will continue to be restricted, and it is expected that space will remain very tight during the entire Lunar New Year.

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