Ship freight rates in the second half of the year continue to increase.

Tensions in the Middle East, congested ports, risk of container shortages, causing freight rates to continue rising in the second half of the year. SINO accelerates expansion of Sea Freight business in ASEAN to meet demand for product exports. Support this year's cargo volume to reach the planned target of 53,000 containers.

Mr. Nantmanas Vithayasakphan, Chief Executive Officer of Sino Logistics Corporation Public Company Limited (SINO), revealed that the trend of shipping rates in the second half of this year is expected to continue increasing. Currently, the Shanghai Containerized Freight Index stands at 3,733.80 points (as of July 5, 2567), an increase of 262% compared to the beginning of the year.

Due to the tension situation in the Middle East that still has not been resolved. This makes shipping by sea require a longer travel time to avoid the Red Sea route. and shipping ports that are congested from the demand for sea shipping services. This increases pressure on the risk of container shortages even more.

Such factors will have a positive impact on the operating performance trend in the second half of this year to expand better than the first half. From SINO's competitive advantage as a comprehensive international logistics service provider. Covers sea, air and land.

With the highest volume of maritime cargo transported on the Thailand-US route in Thailand and the third highest in the world, the company benefits from having OTI (Over-the-Top) contracts, allowing it to independently contract with shipping lines. This enables efficient end-to-end cargo transportation services, capitalizing on rising freight rates while simultaneously managing operating costs efficiently, thereby boosting gross profit margins.

The company plans to expand its market in both Thailand and the ASEAN region through joint ventures with local partners. This aims to establish Thailand as a central hub for maritime shipping for ASEAN countries exporting goods to the United States. A joint venture with a local partner in Malaysia has already been established, and full revenue from this venture is expected to begin in the third quarter of 2024.

In addition, the company is in the process of negotiating with new partners. To jointly establish a joint venture company that will be able to increase the potential and growth opportunities of the business. Initially, it is still aimed at Southeast Asian countries. This is because countries in this region have relatively high production bases and exports to the United States. Therefore, it is an opportunity for SINO to provide additional international shipping services to customers in those countries in the future.

“We are confident that the second half of the year will see better operating performance growth than in the first half. It is confident that it will be able to push the shipping volume this year up to 53,000 containers as planned and seize good opportunities during a period of rising freight rates. This will cause this year's operating results to grow and have an even better gross profit rate.”

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