News / Busy China services and equipment foresight keeps Matson ahead of the game

first_imgPhoto 215773231 © Sheila Fitzgerald | Dreamstime.com US flag-carrier Matson reported net income for the first quarter of $87.2m, compared with just $3.8m for Q1 20, thanks to “continued significant demand” for its services to China.“Our financial performance in the China service was the primary driver of the increase in consolidated operating income,” said CEO Matt Cox.Matson’s CLX and CLX+ loops connecting China with the US west coast saw a huge 219% increase in liftings over the same period of last year, and “achieved average freight rates considerably higher than a year ago”.Mr Cox added: “We also expect demand in the transpacific tradelane to remain favourable as elevated consumption trends, including heightened e-commerce activity, are expected to continue beyond the second quarter.”And he expected “significant demand” for China-US services “to remain throughout the peak season into late October”.Matson’s container volumes to Hawaii increased slightly, by 0.6%, dragged down by the negative effect of reduced tourism, but supported by higher demand for home improvement goods.Liftings for Guam increased 2% quarter on quarter, while volumes for Alaska declined 4.9%, which the carrier said was primarily due to one fewer sailing.Matson operates a fleet of 27 ships for a capacity of 62,622 teu and is ranked 23rd in Alpahliner’s top 100 carriers.Nine of the vessels are chartered-in, of which six are deployed on the service to China, but CFO Joel Wine told investors and analysts attending its interim results webinar that, despite big hikes in charter hire, the services ex/to China were still highly profitable.And Matson appears to have been very proactive in its assessment of the increased equipment requirement on the trade.“We got out early on ordering additional equipment and chassis, before everyone else realised the potential strength of this market, and we have been acquiring additional containers and chassis ahead of when we needed them, and that has put us in really good shape,” said Mr Cox.“We have not lost a single booking because we have not had a container, nor have we missed a voyage since the beginning of the pandemic,” claimed the CEO.Mr Cox said he thought the carrier’s domestic trades were “at the beginning of a recovery” and, in answer to a question on freight rates, he confirmed that Matson had achieved “significant increases” from 1 May for BCO annual contracts from China that make up just under half of its business.Meanwhile, Matson’s larger ocean carrier rivals are coming under increased pressure from US agricultural exporters they claim “are declining to ship US agricultural commodity exports from US ports and imposing hundreds of millions of dollars of punitive charges already determined to be unreasonable by the FMC”.A letter sent yesterday to US secretary of transportation Pete Buttigieg, signed by 300 exporters, complains that carriers are continuing to send empty containers back to Asia rather than make them available for loading exports.“The situation is exacerbated by carriers’ failure to provide accurate notice to our exporters of arrival/departure and cargo load times, and then imposing draconian financial penalties for ‘missing’ those windows,” reads the letter.“We need action now; not additional studies,” demand the signatories. By Mike Wackett 28/04/2021last_img read more

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Civilian not soldier shot in Helong

first_img AvatarDaily NKQuestions or comments about this article? Contact us at [email protected] RELATED ARTICLESMORE FROM AUTHOR News The individual presumed to be a NorthKorean defector shot dead by Chinese military on June 11th in the JilinProvince of the Yanbian Korean Autonomous Prefecture, which borders NorthKorea, was not a soldier but a North Korean civilian, Daily NK haslearned. “Two North Koreans were caught by theChinese military as the former were crossing the Sino-North Korean border. TheChinese military opened fire when the two men refused to be apprehended and ranaway. One died on the spot, and the other one ran away,” a North Korean sourcein China informed Daily NK on the 14th. A legion of Chinese soldiers has beendispatched to ferret out the runaway, he said. There is yet no news of thedetention of the individual still at large, but the source surmised his apprehensionto be imminent, given the number of solders mobilized for the cause. The shooting took place in Helong, the siteof a host of incidents involving North Korean soldiers crossing over into China,looting homes and murdering Chinese nationals in the process. After a soldierwith the 27th brigade in Chongjin City, North Hamkyung Province deserted hispost and crossed the small district of Nanping located in Helong City, part of thewider Yanbian Korean Autonomous Prefecture, killed four Chinese citizens andinjured another back in December– followed by a similar incident reported in April–theChinese authorities upped the ante by deploying additional national borderunits to tighten security in the region. “As there have been consecutive cases in whichNorth Korean defectors entering China and killing Chinese citizens, the Chineseauthorities have put out a mandate ordering police to shoot any illegal bordercrossers from North Korea refusing arrest,” he explained.“The Chinese militaryauthorities have verbally informed North Korean authorities about this severaltimes.” The most recent in this string of incidentsis likely to result in even tighter vigilance on the Sino-North Korea border,compounding the already harrowing circumstances North Koreans face whenattempting to flee the country. Meanwhile, on the day of the incident,Helong City authorities released information on the shooting via Weibo, China’sTwitter variant. North Korea and China maintain a tacit agreement to firstdiscuss incidents of this nature before directly releasing information to thepublic; China’s decision to sidestep talks with the North on the matter is exceedingly rare, understood as a move aimed at conveying a strong message to Pyongyang.*The content of this article was broadcast to the North Korean people via Unification Media Group. Facebook Twitter North Korea Market Price Update: June 8, 2021 (Rice and USD Exchange Rate Only) SHARE NewsEconomycenter_img News There are signs that North Korea is running into serious difficulties with its corn harvest By Daily NK – 2015.06.15 4:10pm Civilian not soldier shot in Helong News US dollar and Chinese reminbi plummet against North Korean won once againlast_img read more

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