Middle East Volumes Help Boost Samudera Shipping’s Revenues

Samudera Shipping Line saw recovery in its key container shipping business even as it appeared to leave its home Indonesian market to seek its fortunes on further shores.

News ID: 78682

Date: 02 March 2018 - 12:20

According to MANA, Higher revenue came from this segment as volumes rose 10% to 1.3m teu while freight rates also improved, resulting in an 11% rise in turnover to $250.7m and making up the bulk of its $283.7m total revenue which also rose 9% in 2017 from the year before.

From the regional shipping line’s geographical segment revenue breakdown for its container shipping and agency and logistics business, it can be seen that growth clearly came from the Middle East and Indian subcontinent where turnover rose by about half to $52.1m in 2017 from $34.3m in the previous corresponding period.

Also significantly Southeast Asia ex-Indonesia was the next fastest growing sector rising 5% to $119.7m, and making up the biggest component of revenue in this business. Indonesian business was the second largest component, but with barely 2% growth and contributing $68.8m to revenue, risks being rapidly overhauled by the Middle East and subcontinent sector.

The Far East and others markets, where Samudera traditionally has not been too active made up $39m and $12.3m of revenue respectively.

Looking ahead Samudera said: “While recent indicators point to improving conditions in the container shipping industry, the Group expects competition to heat up in 2018, led by a consolidation among mainline operators and the resulting concentration of market share.”

It further warned: “In addition, with new tonnage in excess of demand entering service in the coming year, intense competition for cargo will persist. Compounding this is the anticipated uptrend in bunker prices in the year ahead.”

“To maintain its market competitiveness amid current industry dynamics, the Group will also continue to focus on optimising asset utilisation and operational efficiency to fortify itself against challenges that lie ahead,” Samudera said, noting that it expected to continue to grow its logistics support capabilities in the region, and was currently on the lookout for opportunities to expand its warehousing and container depot capabilities.