Maritime sector sees uneven profits driven by fleet strategies

Maritime sector sees uneven profits driven by fleet strategies

While some operators are seeing profits surge amid rising charter rates, others remain hamstrung by ageing fleets and structural inefficiencies.

A vessel of Hai An Transport and Stevedoring JSC. — Photo courtesy of the company

The maritime transport sector is experiencing a sharp divergence in financial performance as companies adapt, at different speeds, to shifts in the global freight market. 

While some operators are seeing profits surge amid rising charter rates, others remain hamstrung by ageing fleets and structural inefficiencies, exposing the growing divide between investment-led growth and stagnation.

The global freight market has shown signs of recovery, as US importers have ramped up their inventory in anticipation of improved supply chain conditions. 

The Drewry World Container Index indicated a notable increase in freight rates, climbing 20.8 per cent from May 8 to May 29, with prices for shipping containers rising from US$2,076 to $2,508 for a 40-foot unit. 

Key routes, including those from Shanghai to Rotterdam and Los Angeles, have seen substantial rate increases, suggesting a positive trend for domestic transport companies.

Hai An Transport and Stevedoring JSC has emerged as a frontrunner in the sector, reporting impressive growth due to continuous investment and fleet modernisation. 

Over the past few years, starting from COVID-19 pandemic, Hai An has pursued an aggressive expansion strategy, building a fleet that now comprises 16 container vessels with a total capacity of 26,500 TEUs.

This helps position it as a key player in the domestic and intra-Asian transport market.

Given the expansion of the fleet and the recent upswing in global shipping rates, the company is expected to post outstanding business results this year. 

In the first quarter of the year, it reported a net profit of VNĐ233.2 billion, marking an almost 294 per cent year-on-year increase and already meeting one-third of its annual target. 

Thanks to favourable business conditions and ongoing acquisitions by major shareholders, the valuation of Hai An’s shares (HAH) has reached 2.89 times. This represents a significant increase compared to the valuation range of 1 to 1.97 times observed during the 2021-2023 period.

On the stock market, HAH stock rose more than 73 per cent between April and May, underpinned by renewed investor confidence and a strong asset-to-equity ratio.

In stark contrast, companies like Vinaship and Vosco are grappling with significant operational challenges. 

Vosco, in particular, faced losses even in the first quarter of 2025, highlighting the risks associated with delayed investments.

The company reported a loss of VNĐ53.07 billion in the first quarter, after recording a profit of VNĐ82.5 billion in the same period last year.

Vosco, which has not made significant investments in over a decade, plans to introduce 10 new vessels worth up to $414 million by the end of 2025.

Similarly, Vinaship is navigating choppy waters.

Despite a modest fleet upgrade in late 2024 - its first in over a decade - Vinaship has struggled to translate asset additions into earnings. 

Although its revenue improved slightly, the company posted a net profit of just nearly VNĐ83 million in Q1, down nearly 70 per cent year-on-year. These figures reflect the lingering drag of older ships on operating efficiency and margins.

Nevertheless, Vosco and Vinaship still experienced stock price increases between April and May, albeit at a more modest pace of 25.3 per cent and 6 per cent, respectively. 

As freight rates recover, investors are hopeful that domestic transport companies will reap benefits, mirroring the positive trends seen during the COVID-19 pandemic. 

Bizhub