Matson Shipping issued a forecast for the fourth quarter of 2020, with profit up nearly fivefold compared with the same period last year

Matson (NYSE: MATX) forecast a fourth-quarter profit of $76.1 million to $81.6 million, compared with $15 million in the fourth quarter of 2019 and a nearly fivefold increase in the fourth quarter of 2020, driven by a big increase in trans-Pacific container traffic between China and the United States.Mainly thanks to the 139% year-on-year growth in CLX and CLX+ services.Diluted earnings per share are expected to range from $1.74 to $1.87.

"Despite the continued challenges of the Covid-19 outbreak and the associated economic impact, Matson's Marine shipping and logistics continued to grow well in the fourth quarter, capming a strong year," said Matt Cox, Matson's chairman and CEO.

According to Long Term Tracker, net income for the reporting period was $3.8 million;Second-quarter earnings of $32.8 million;Third-quarter earnings were $70.9 million.Meanwhile, Matson's debt declined by $63.6 million to $760 million as of Dec. 31, 2020.

By business segments, we expect fourth-quarter operating revenue of $100 million to $105 million for Marine transportation and $8 million to $9 million for logistics.

In terms of shipping, Matson's China services saw significant demand for CLX and CLX+ expedited shipping services at the end of the year, which was the main driver of consolidated operating income growth over the same period last year.It is understood that CLX+ is a new fast shipping route for the Sino-US market opened by Meisen in July 2020. By providing double fast shipping routes for a week, CLX+ meets the needs of our customers for mass, accurate and stable Sino-US shipping services.In particular, Matson CLX+ 's sea-rail intermodal service not only eases the transportation rate to the western ports of the United States, but also provides more shipping space.So that the United States ship performance level of substantial promotion.

Matt Cox believes that the supply-demand dynamics in the trans-Pacific trade corridor in the fourth quarter of 2020 suggest that the growth trend will continue for some time in the first half of 2021 as the Covid-19 epidemic continues.And with the Covid-19 vaccination situation, it is expected that the supply and demand factors that have benefited Matson ships will continue to exist and continue to drive demand for CLX and CLX + services.

In terms of logistics, with the growth of shipping business, the logistics business revenue also increased year on year.Increased commodity consumption, inventory replenishment and tighter supply and demand fundamentals in core markets are expected to keep the company's operating costs under control."At the moment, warehouses still need to be replenishment to make up for corporate shortages, keep up with rising consumer trends, and deal with the possibility of renewed supply chain disruptions," Mattcox said.

Matsen's shares trade on the New York Stock Exchange under the ticker symbol MATX.Matson's shares rose 7.3 per cent an hour after the earnings announcement.Matson now has a market capitalization of $2.71 billion, and its share price has fluctuated between $65.04 and $23.75 over the past year.After opening the session at $61.54, shares in Matsom were trading between $63.29 and $61.54.

Matson is expected to report its fourth quarter results on February 23, 2021.