Hong Kong's Hutchison Port Holdings Trust (HPH Trust) saw its fourth-quarter earnings fall 38.4 per cent on weaker revenue and losses from associated companies.
The company announced an attributable net profit of HK$237.8 million for the three months to Dec 31 last year - down from HK$385.8 million in the same period a year earlier.
The Trustee-Manager remains cautiously optimistic about the expected cargo volume for 2018.
Major liners have announced plans to continue to invest and build more megavessels of up to 22,000 TEU and this potential excess capacity will likely put pressure on freight rates, and as a result, keep port tariffs in check.
HPH Trust will continue to build on its strengths whilst adhering to strict financial discipline, and with its modern facilities and efficient mega-vessel handling capabilities, the Trustee-Manager is confident that it is well-equipped to respond to external developments and challenges.
Shipping lines will continue to deploy mega-vessels to attain capacity and fleet optimisation to derive further cost efficiencies. In addition, focus has shifted from port performance to supply chain performance to drive competitiveness and operational efficiencies.
Furthermore, greater emphasis will be placed on security in the wake of growing cyber-attack threats on companies.
Against these settings, with a strategic transshipment hub in Hong Kong, the exemplary mega-vessel handling capabilities of YICT and our strategic investment in state-of-the-art equipment and facilities, HPH Trust is well positioned to support the changing requirement of the container shipping industry and maintain its reputation as the preferred gateways to the vast Pearl River hinterland