Meisen's Q4 net profit increased by 346%, with China becoming the main driving force

2021 can be described as the golden age of global shipping. Affected by multiple factors such as the epidemic, containers are in short supply and freight costs are rising rapidly. On the one hand, cross-border sellers are overwhelmed by shipping problems, while on the other hand, shipping companies are making a fortune.

Recently, Matson announced preliminary results for the fourth quarter of 2021. According to Matson's report, its operating income for the fourth quarter of 2021 is expected to be US$44.50 to US$455.0 million , and its logistics operating income is expected to be US$14.0 to US$15 million ; net income is US$365.2 to US$382.4 million , an increase of approximately 346% year-on-year .

It is reported that Matson's fourth-quarter earnings surged mainly due to the boost from its China business. Benefiting from the substantial growth in demand for CCX routes, Matson's transaction volume in China increased by 32.7% in the fourth quarter .

"In ocean shipping , demand for expedited ocean freight services is growing significantly as China continues to increase its volume of e-commerce, apparel and other goods , " said Matt Cox, chairman and CEO of Matson . "Strong demand for Matson's services in China was the primary driver of the year-over-year increase in consolidated operating income. "

Meanwhile, Matson’s domestic ocean trade lanes also saw a significant increase in demand compared to the same period last year. Hawaii ’s container volumes also saw a 10.4% increase compared to the same period last year , driven by increased retail and hotel-related demand as tourism continued to rebound , and the easing of COVID-19 restrictions in Hawaii .

Alaska also saw a 10.2% increase in freight volumes compared to the same period last year , primarily due to increased volumes on the Alaska -Asia Express and southbound volumes.

Mr. Cox also said that as global consumer demand continues to rise, supply chain congestion remains the main problem on the current trans-Pacific trade route . Currently, there is still a phenomenon of tight supply chain and difficulty in replenishing inventory in the United States . At the same time , Cox expects supply chain congestion to continue until the peak season in October 2022 , and expects that the transportation demand on Matson's China route will continue to increase this year.   

Mason

Q4