Samudera Shipping Line had a banner year in 2021. Revenue rose 51.5% in FY2021 to US$527 million, with 2H2021’s revenue up 83.7% y-o-y to US$317.9 million. Revenue from the container shipping segment grew 53.7% to US$510.3 million in 2021, underpinned by rising freight rates as demand for shipping services outpaced capacity supply, especially for the shipments of carrier-owned container cargo.
Container volume handled increased 16% y-o-y in 2021, to 1,495,000 TEUs. Revenue from the bulk and tanker segment decreased 16.1% to US$5.7 million in FY2021. This is despite some vessels in dry-dock for repair and maintenance. Cost of services rose at a slower pace, by 19.4% y-o-y, as a results of Samudera’s cost management effort. Gross profit jumped 396.4% y-o-y to US$146.9 million in FY2021 while Patmi rose manifold to US$128.6 million, compared to just US$7.2 million in 2020.
Congestion at ports around the world, along with the resulting network and supply chain disruptions and capacity shortage, is expected to persist throughout most of 2022. This will continue to exert upward pressure on freight rates amid the ongoing pandemic, Samudera says in a statement. Demand for shipping services should remain robust amid with the gradual reopening of economies globally, it adds.
However, the company warns that operating costs are also escalating on the back of the port congestions and costs associated with delays in vessel turnaround. This has led to capacity shortage which has in turn driven up vessel charter rates.
Meanwhile, bunker prices are expected to trend higher in view of the global production capacity and geopolitical situation. “The increases in charter hire rates and bunker price are expected to weigh on our bottom line,” Samudera says.
In view of the vessel shortage, the Group has secured a total of six newly build container vessels on long-term charter in order to minimise the service disruption to our key customers. Two of these have been deployed while the remaining will be delivered progressively from 4Q2022. The two chemical tankers in the Group’s bulk and tanker fleet remain gainfully employed. The Group is working towards rebuilding its presence in the regional tanker market in the year ahead.
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Elsewhere, in the Logistics and Others business, the Group’s warehouses in Malaysia remain fully utilised with improved rates. The agency business continues to turn in a good performance on the back of the burgeoning shipping environment. The Group’s ISO tank business is also expected to continue experiencing strong demand, and the Group has taken the opportunity to expand its fleet of ISO tanks.
