Net loss of 1.5 billion! Another two consecutive quarters of losses for shipping companies

 With the financial reports of the large ship companies in the first half of 2023, in addition to the current loss of Wanhai shipping for three consecutive quarters (ship company profits plummeted! Three consecutive quarterly losses of shipowners appear), to star Shipping on the 16th released the second quarter and half year financial results, data show that the second quarter ZIM net loss of 213 million US dollars (about 1.5 billion yuan). It became the second shipping company to lose money for more than two consecutive quarters.

This year, the financial data of sea carriers continued to return to normal. This "normalization," combined with the astronomical numbers of the previous year, shows a significant year-over-year decline in shipping companies' performance so far in 2023.

Estar was no exception, with its second-quarter adjusted EBITDA down 87 percent to $275 million and second-quarter revenue down 62 percent to $1.31 billion.

At the same time, the Israeli shipping company posted a net loss of $213 million, compared with a net profit of $1.3 billion in the second quarter of 2022. In addition, the company's earnings before interest and tax (EBIT) was $168 million in the second quarter, compared to more than $1.76 billion in operating income in the same period last year. This was mainly due to lower freight rates.

The Haifa based container shipping company saw a slight increase in cargo volume to 860,000 TEUs in the second quarter, but the average freight rate per TEU was $1,193, down 67 percent from a year earlier.

Based on the low season and the expectation that demand will continue to be low for the rest of the year, Estar reiterated its previously adjusted full-year guidance, lowering its full-year 2023 guidance - adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to $1.2-1.6 billion from $1.8-2.2 billion previously. 

Adjusted earnings before interest and tax (EBIT) to a loss of $500 million to $100 million from a profit of $100 million to $500 million previously.

The guidance reflects continued weakness on all of the company's routes, particularly trans-Pacific routes, which is expected to continue in the second half of 2023.

At the same time, the star also believes that due to the continued low demand, freight volume growth may be lower than initially forecast.