The Shanghai Containerized Freight Index (SCFI), which reflects the freight rates for container ships worldwide, has reached its highest levels of the year. However, the substantial decrease in freight rates in comparison to the previous year is having a negative impact on HMM’s profitability.
According to industry sources on November 7, the SCFI stood at 1,067.88 as of November 3, marking its highest level since December 30 of the previous year. Particularly noteworthy is that after dropping to as low as 800 points in September, it has seen four consecutive weeks of increases, crossing back over the 1,000-point mark.
Freight rates
Despite being at its highest level this year, the SCFI has seen a significant drop in comparison to last year’s freight rates. In January of the previous year, the SCFI broke the 5,100-point mark for the first time in history, reaching 5,109.60, and maintained a rare boom, hovering around the 2,000-point mark until the end of September. Due to the surging freight rates caused by the COVID-19 pandemic, HMM recorded its highest performance ever, earning nearly 10 trillion won (US$7.62 billion) in operating profit last year.
Container transportation
The issue lies in the fact that HMM has an extremely high proportion of its revenue coming from container shipping. According to the semi-annual report, as of the first half of this year, 83.9 percent of HMM’s revenue was generated from container transportation, while the proportion of bulk cargo transportation was only 13.9 percent. As a result, the company’s performance has been significantly impacted by the fluctuations in the SCFI.
We’re a group of volunteers and opening a new scheme in our community.
Your website provided us with valuable information to work on. You’ve
done an impressive job and our whole community will be thankful
to you. I saw similar here: Sklep internetowy
May I just say what a comfort to discover someone
who actually understands what they are discussing on the net.
You certainly know how to bring an issue to light and make it important.
More and more people should check this out and understand this side of the story.
It’s surprising you’re not more popular given that you definitely possess the gift.
I saw similar here: Sklep online
I loved as much as you’ll receive carried out right here.
The sketch is tasteful, your authored material stylish. nonetheless, you command get
bought an edginess over that you wish be delivering the following.
unwell unquestionably come more formerly again since exactly the same nearly very
often inside case you shield this increase. I saw similar here:
Najlepszy sklep
Wow, this piece of writing is good, my sister is analyzing these kinds of things,
therefore I am going to inform her. I saw similar here: e-commerce
and also here: najlepszy sklep
Wow, wonderful blog structure! How long have you ever been running a
blog for? you made blogging look easy. The overall glance of your web site is
wonderful, as well as the content material! You can see similar: sklep and here
najlepszy sklep