Oil and gas transportation companies are expected to enjoy significant second-half profit growth extending to next year, while container shipping firms see slower growth.
A Saigon Securities Inc. (SSI) report released Tuesday said demand for oil and gas transportation was on the rise while that of container shipping may decelerate to single-digit growth.
The report, which analysed the seaport and marine transport sector, said container freight was expected to return to normal levels, but this would depend on the resolution of supply chain disruptions worldwide, which is not projected to happen until the second half of 2023, when pandemic-related restrictions would be removed in most markets worldwide, including China.
“Profit growth for container transporters may slow but profits will remain strong through 2023 thanks to vessel leasing agreements renewed with higher rents and a stable domestic market,” the report said.
As for port operating companies, profit growth is likely to be stable for deep-water ports like Gemalink in the southern province of Ba Ria-Vung Tau and the Hai Phong International Container Terminal (HICT) in the northern port city of Hai Phong, while other ports may face downward pressure, the leading broker predicted.
In the first six months of 2022, containerized cargo handled through seaports nationwide totalled 12.8 million TEUs (twenty-foot equivalent unit), up just 0.5% year-on-year, it noted.