Forex Sky Eye APP News: The continuous decline in international crude oil prices have made the shipping sector a hot spot in the market recently. On the 11th, the shipping sector in the A-share market strengthened against the trend. In terms of individual stocks, COSCO Shipping and China Merchants Shipping and reached the daily limit, Ningbo Shipping and rose by more than 7%. Haixia shares once hit the daily limit during the session, and finally ended the day's journey with an increase of 6.3%.
Fuel oil is a major component of the operating costs of shipping companies, and the decline is definitely a good thing for the shipping industry. The reporter noticed that in addition to the recent decline in oil prices, the sluggish international shipping market in recent years has led to a continued decline in the global shipbuilding market, and shipbuilding prices have also fallen sharply.
Against this background, some A-share companies have begun a new round of shipbuilding plans in order to seize the initiative at a low level and set sail smoothly when the market comes.
Falling oil prices are good for shipping industry
Falling oil prices are of great significance to the downstream of the oil industry chain, especially airline and shipping companies that require a large amount of fuel oil.
Take COSCO HIT 2018 data as an example. The company's fuel cost in that year was 1.722 billion yuan, accounting for 26.65% of the total cost. From this point of view, the sharp drop in oil prices will bring huge cost savings to shipping companies and also bring great flexibility to their performance improvement.
excerpt from COSCO HIT 2018 annual report
The positive effects of the decline in oil prices to the shipping industry are not only reflected in the cost side. As oil prices fall, the increase in crude oil import demand in various countries will also surge in transportation demand; in addition, in order to meet the increased crude oil storage demand, some shipping vessels will be leased to store crude oil, reducing the number of shipping vessels from the supply side, which will help maintain and increase freight rates.
For airline and shipping companies that require a large amount of oil consumption, falling oil prices will definitely alleviate cost and cash flow pressure. How much benefit is it? Taking aviation companies as an example, the research report of CITIC Securities believes that assuming that the annual decline in aviation kerosene by about 12%, the cost reduction caused by the price reduction of the three major airlines aviation fuel may reach 1.5 billion to 2 billion yuan in 2020. It is estimated that every 10% decrease in aviation fuel costs corresponds to a quarterly gross profit contribution of 500 million to 600 million yuan.
"Investing in shipping is to look at the trend of oil price." Some market insiders believe that in the past few years, due to high oil prices, global economy sluggish, oversupply of transportation capacity, and difficult operation of shipping companies, this round of oil price decline may allow all links of the industrial chain to be redistributed, bringing more investment opportunities.
Shipbuilding prices plummeted and took advantage of the trend of shipbuilding
In addition to the decline in oil prices, shipping companies also have another major benefit at present, that shipbuilding prices are also at a low level. Now, relevant shipping companies have taken action to take advantage of the opportunity to build ships to "accumulate" in order to set sail smoothly when the market comes.
COSCO Shipping html announced on the morning of the 211th that five wholly-owned subsidiaries of single-ship companies of the company's holding subsidiary Oriental Overseas (International) Co., Ltd. signed shipbuilding agreements with Nantong COSCO Shipping Kawasaki Ship Engineering Co., Ltd. and Dalian COSCO Shipping Kawasaki Ship Engineering Co., Ltd. on March 10, respectively, to purchase a total of 5 23,000 TEU container ships, with a total price of approximately 5.401 billion yuan, and the delivery time is approximately 2023.
For the shipbuilding plan, the company stated that these ships, together with the smaller existing ships of Orient Overseas, can complete the fleet of Orient Overseas and enable Orient Overseas and its subsidiaries to benefit from the economic benefits of .
is similar to Zhongyuanhaite . There is also Zhongyuanhaite . The company announced on the evening of the 10th that it plans to build another 8 62,000-ton multi-purpose pulp ships at Dalian Heavy Industry on the basis of investing in the construction of 12 multi-purpose pulp ships.
"Investing in shipbuilding under the current circumstances will help you seize the good opportunities of the relatively low shipbuilding market, operate counter-cyclically, and achieve low-cost development." COSCO Hite said that now is a favorable opportunity for the shipbuilding market and it is also a need for the company to develop its fleet at a low cost.
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