Sea shipping firm expects lower demand in 2024

CEO Nguyen Canh Tinh highlighted at a company meeting on Thursday that a range of factors, including drought conditions in the Panama Canal and increasing attacks on commercial vessels in the Red Sea and Suez Canal, are poised to disrupt global supply chains and shipping operations.

State-owned VIMC went through a challenging 2023 as demand from the U.S. and Europe was low and local businesses recorded high inventory, forcing most shipping firms to cut down operation costs, he added.

Rising competition from private firms and the launching of new ports in the region also added more challenges, he said.

Last year the state-run group shipped 20 million tons of goods and managed 113 million tons of goods passing through its ports, the latter down 8% from 2022.

Total company revenue dropped 9% to VND17.96 trillion, and profits fell 32% to VND2.08 trillion. VIMC targets a profit growth of 4% this year, or about VND2.17 trillion.

The company now operates 59 ships, including 10 container ships. Its fleet accounts for 21% of Vietnam’s total.

It also runs 89 wharves, or 15% of Vietnam’s total.