SHIPPING BOOM:
Freight forwarders Dimerco and T3EX enjoyed robust sales growth, as sea cargo rates soared due to demand outpacing supply amid the COVID-19 pandemic
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By Kao Shih-ching / Staff reporter
Freight forwarder Dimerco Express Corp (中菲行) yesterday reported robust revenues last month and solid net profits in the second quarter due to consistently strong air and sea cargo forwarding rates.
The Taipei Exchange-listed company’s revenue last month surged 73 percent from a year earlier to NT$3.11 billion (US$111.82 million), it said in a statement.
Revenue from sea freight forwarding jumped 179 percent to NT$1.44 billion, or 46.4 percent of the total, compared with about 30 percent before the COVID-19 pandemic, it said.
Sea freight rates have risen due to a labor shortage and congestion at sea ports around the world amid the pandemic, it said.
Revenue from Dimerco’s air cargo forwarding business also increased 35 percent annually to NT$1.56 billion last month, making up another 50 percent, it said.
In a separate statement, the forwarding company also released its second-quarter results, which showed that net profit grew 19 percent to NT$561 million in the second quarter, compared with NT$471 million in the same period last year. Earnings per share rose to NT$4.45, from NT$3.74.
For the first half of this year, net profit expanded 51 percent to NT$861 million from NT$569 million a year earlier, or earnings per share of NT$6.84, compared with NT$4.52 in the same period last year, company data showed.
Meanwhile, T3EX Global Holdings Corp (台驊國際投資控股), a Taiwan Stock Exchange-listed freight forwarder, said its revenue soared 176 percent annually to NT$3.36 billion last month, with sales from sea freight forwarding advancing 288 percent to NT$2.56 billion, a record monthly high, it said in a statement.
“Demand for sea shipping continued to outweigh supply, which pushed up sea cargo rates, but we, having a good relationship with shippers, succeeded in booking more capacity to meet clients’ needs and gain fresh revenues,” it said.
Sales from its air cargo forwarding operation grew 49 percent to NT$523 million, T3EX said, adding that it does not expect air cargo rates to drop sharply in the near term as supply remains tight and some clients have been forced to switch to shipment by sea.
For the first seven months of this year, T3EX’s revenue totaled NT$17.1 billion, up 125 percent from a year earlier and easily surpassing revenue for the whole of last year, it said.
Southeast Asian markets reported the fastest growth of 228 percent due to an ongoing transfer of global supply chains, it added.
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