The container volume on the China-US route has dropped significantly, and Matsun’s revenue and profits will both decline in 2023!

It is learned that recently, Matsun Shipping announced its fourth quarter and full year 2023 financial results.

The report shows that in 2023, Matson achieved operating income of US$3.09 billion, a year-on-year decrease of 28.7%; net profit was US$300 million or US$8.42 per share, a year-on-year decrease of 72.1%.

In the fourth quarter of 2023, Matson achieved operating income of US$780 million, a year-on-year decrease of 1.6%; net profit was US$62.4 million or US$1.8 per share, a year-on-year decrease of 20.0%. With stable demand from US consumers, Matson's fourth-quarter performance decline was smaller than Wall Street analysts expected.

In terms of segments, Matsun's shipping segment achieved an operating profit of approximately US$295 million, a year-on-year decrease of approximately 77%; the logistics segment achieved an operating profit of US$48 million, a year-on-year decrease of approximately 34%. The report pointed out that the main reason for the decline in revenue and profit was the significant decrease in the average freight rate and container volume on Matsun's China-US route, which was partially offset by the increase in fuel surcharge income.

Looking ahead, Matson expects the company's consolidated operating income in 2024 to be close to last year's (2023) level due to stable consumer demand in the trans-Pacific market. At the same time, Matson's average freight rate in 2024 will be slightly higher than that in 2023.