Hana Securities analyzed on the 22nd that the container terminal business could be an opportunity for container shipping companies worldwide, including HMM.
Maersk, the world's second-largest container shipping company, reported that poor performance in the shipping institutional sector was partially offset by its terminal business in the first half of this year. Revenue from Maersk's terminal business increased by 22% compared to the same period last year, and earnings before interest and taxes (EBIT) also rose by 31%. The operating profit margin (operating profit ÷ revenue) reached 33.7%.
German container shipping company Hapag-Lloyd also saw its terminal business revenue grow by 11% in the first half of this year compared to the same period last year, maintaining a high operating profit margin of 15.1%.
A researcher at Hana Securities, Ahn Do-hyun, noted that as port congestion in the Americas increases, terminal usage fees are rising, and the restructuring of shipping alliances is also having an impact.
Researcher Ahn said, "With the increase in container shipping capacity, the terminal's processing capacity is relatively growing slowly, leading to increased port congestion," and added that due to the influence of port unions, automation is also not easy, and port congestion is expected to remain high.
When container shipping companies secure terminals, they can not only increase revenue but also enhance container processing speed, which has a positive effect on their core business of maritime transport, Ahn diagnosed.
Container shipping companies that have improved their cash flow after the COVID-19 pandemic are actively venturing into terminal businesses, which come with fixed asset investment (CAPEX) burdens. HMM is also said to have participated in the bidding for the Santos Port development project in Brazil.
Researcher Ahn said, "If HMM participates in the port terminal business, it is expected to enhance performance stability as cash flow for several decades will be guaranteed."
He added, "As container supply increases and freight rates decline, while transportation expenses are also rising, container shipping companies that secure profitable ports early are likely to navigate the downturn better."