Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Nature Home (2083 HK): Possible Takeover Target

Quiddity Advisors

Event-Driven

Yang Ming Marine Transport / Event-Driven

Drewry's released its latest Container Forecaster report, published on the 30 June, forecasting EBIT for the container carriers of US$88bn in 2021, possibly as high as US$100bn.
To put that in context, in February 2018 McKinsey &amp; Company<a href="https://www.marinelink.com/news/overcapacity-struggles433904" target="_blank" rel="noopener"> estimated</a> that low rates of returns for container shippers had destroyed "over $100 billion in shareholder value over the last 20 years".
Therefore container shipping companies are effectively recouping 20 years of losses in one year.
As discussed in <a href="https://skr.ma/dft2W" target="_blank" rel="noopener">Squeeze Box: The Port Congestion Contagion</a>, container spot rates are up 1,000+% in the last year. According to Drewry, average freight rates (spot and contract) across global trades are expected to rise by around 50% in 2021, an uplift of as much as 30% on its March forecast.
According to <a href="https://theloadstar.com/i-paid-ridiculous-charges-my-cargo-still-got-rolled-and-the-carrier-wanted-more/" target="_blank" rel="noopener">Loadstar</a>, a "serious offer" of $25,000 per 40ft had been quoted to a shipper that needed to move 300 containers from Shanghai and Yantian to Los Angeles this month. A year ago, the spot rate was US$1,700.
That "offer" costs US$7.5mn. You could have bought a 15-year old 2800 TEUs vessel earlier this year for that kind of cash.
Spot rate quotations are blowing through measures from the Shanghai Containerized Freight Index (the most relevant index for containers) and the Drewry Index, as those spot prices are based on figures one week prior to a ship's departure. But given the unprecedented demand from exporters, slots are being offered by carriers closer to the departure date as they try to squeeze out all available cash.
As one commentator put it: "The shipper is going economy and their cargo is traveling first class". 
In this insight, I take a look at <a href="https://www.smartkarma.com/entities/yang-ming-marine-transport" target="_blank" data-smartkarma-citation="entities:8502:1" rel="noopener">Yang Ming Marine Transport (2609 TT)</a> which is up 3,380% in the last year, and whether this company still has legs.

Drewry's released its latest Container Forecaster report, published on the 30 June, forecasting EBIT for the container carriers of US$88bn in 2021, possibly as high as US$100bn.
To put that in context, in February 2018 McKinsey &amp; Company estimated that low rates of returns for container shippers had destroyed "over $100 billion in shareholder value over the last 20 years".
Therefore container shipping companies are effectively recouping 20 years of losses in one year.
As discussed in Squeeze Box: The Port Congestion Contagion, container spot rates are up 1,000+% in the last year. According to Drewry, average freight rates (spot and contract) across global trades are expected to rise by around 50% in 2021, an uplift of as much as 30% on its March forecast.
According to Loadstar, a "serious offer" of $25,000 per 40ft had been quoted to a shipper that needed to move 300 containers from Shanghai and Yantian to Los Angeles this month. A year ago, the spot rate was US$1,700.
That "offer" costs US$7.5mn. You could have bought a 15-year old 2800 TEUs vessel earlier this year for that kind of cash.
Spot rate quotations are blowing through measures from the Shanghai Containerized Freight Index (the most relevant index for containers) and the Drewry Index, as those spot prices are based on figures one week prior to a ship's departure. But given the unprecedented demand from exporters, slots are being offered by carriers closer to the departure date as they try to squeeze out all available cash.
As one commentator put it: "The shipper is going economy and their cargo is traveling first class". 
In this insight, I take a look at Yang Ming Marine Transport (2609 TT) which is up 3,380% in the last year, and whether this company still has legs. 

Yang Ming Marine (2609 TT): Cargo Shipping In First Class