Indonesia’s Samudera Shipping Line has more than tripled its profit in the first half amid the coronavirus (COVID-19) pandemic as the line managed to control operating costs, even as revenue fell.
The Asian regional line said it downsized its fleet, dropped unprofitable services and reduced frequencies where justifiable during the very challenging market conditions to control costs.
Revenue across its container, bulk and tanker shipping businesses fell across the board, as efforts by governments to fight COVID-19 resulted in restrictions on the movement of goods across borders.
Singapore-listed Samudera also benefited from a $523,000 grant from the Singapore government under a Job Support Scheme.
“Taking the above into account, the group recorded profit after tax of $7.3m for 1H20, versus $2m in 1H19,” Samudera stated.
The COVID-19 pandemic, along with geopolitical trade conflicts, has aggravated the difficult operating conditions of the container shipping industry. With global trade activity already dampened by uncertainties arising from geopolitical trade conflicts, the pandemic has further limited the movement of goods both internationally and domestically in view of border closures and movement restrictions. This has lowered container demand and resulted in intensifying competition among ship operators,” the company said.
“The group will continue to leverage its network, track record and capabilities to strengthen its relationships with its shipping and logistics customers. It will also continue to manage its capacity, operations and cost base in an efficient and nimble manner, to strengthen its competitiveness in the long run.”
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