News / ONE container carrier network now predicting loss of $600m in its first year

first_imgBy Mike Wackett 16/10/2018 Japanese carrier Ocean Network Express (ONE) is set to see losses spiral to $600m in its first year, as it struggles to “restore the trust of customers” after the chaotic April launch.ONE has alerted shareholders of K Line, MOL and NYK to a $310m loss for the half-year period to 30 September.Moreover, the merged carrier network has drastically revised its forecast of a full-year profit of $110m to a loss of $600m, which would see it sink towards the bottom of the carrier profitability league table.Prior to the merger of the three carriers, chief executive Jeremy Nixon and his team were bullish about the prospects for ONE, predicting more than $1bn a year in synergy cost savings. They said this would bring a profit in the first year of $110m, followed by $313m and $648m in consecutive years.What followed, however – in the words of its own shareholder, K Line – was a “clumsy” launch, which left customers, loyal to the trio for decades, unable to book containers or obtain information about the status of their cargo.In a joint profit warning today, ahead of first-half results on 31 October, the Japanese trio – K Line and MOL each hold a 31% stake, while NYK has the remaining 38% – endeavoured to provide investors with explanations for the disastrous start.They said lifting and utilisation levels had fallen due to “teething problems” after a chaotic launch, which it attributed to not enough staff, and those they had not being familiar with the NYK IT system.In fact, ONE’s management was obliged to significantly revamp the rationalisation plans, which represented more than a third of the planned synergy savings, by putting in more staff and hiring new workers.The network said: “This caused significant inconvenience for customers.” But it added: “Issues such as staff skill levels and personnel shortages have already been addressed and operations have returned to normal.”However, several shippers and forwarders The Loadstar has spoken to recently said that they were still only supporting ONE with minimal bookings, having been obliged to reserve space with other carriers after the botched launch.As to why the full extent of the problems at ONE were not revealed at the end of July, when first-quarter results were published and trading concerns in the second quarter must already have been known, the companies said it had been expected that liftings and utilisation levels would improve during the peak season.But “ONE did not achieve these targets”, they admitted.ONE has also been impacted by the hike in fuel prices, leaving its strategy of recovering the additional cost of bunkers resulting in “underachievement”.And the Japanese lines said the impact of the US-China trade war, which could see volumes on the transpacific tank in the first quarter of next year when the 25% duty hikes fully kick in, had been factored-in to “a certain degree”. They added that ONE would “determine the need to revise” the 2019 and 2020 business forecasts “upon assessing the situation”.In a LinkedIn post today, Lars Jensen, CEO and partner at SeaIntelligence Consulting, likened the ONE integration problems to Maersk Lines’ ill-judged takeover of P&O Nedlloyd in 2006, resulting in the Danish carrier losing market share due to IT and other consolidation issues.last_img read more

Mental health support for Tasmania’s tourism businesses

first_imgMental health support for Tasmania’s tourism businesses Sarah Courtney,Minister for Small Business, Hospitality and EventsThe mental health of Tasmania’s tourism businesses is the focus of a new $100,000 support package.The program has been developed in recognition of the financial and mental impact of COVID-19 on the State’s small businesses and their employees.The past 12 months has been extremely challenging for small tourism businesses across Tasmania as they’ve rapidly responded to huge changes due to COVID-19, and then adapted to a ‘new normal’.As part of the recently announced $20 million COVID-19 Small Business Sustainability and Recovery Assistance Package, $1 million will go towards mental health support for Tasmanian small businesses in recognition of the financial and mental health impact on them and their employees.Tasmania’s tourism businesses will receive $100,000 through the Tourism Industry Council of Tasmania (TICT) which will deliver the year-long mental health support package.As part of the program, Tasmanian Lifeline will deliver tailored counselling services and mental health training programs which will include a series of wellbeing and resilience workshops hosted by Dr Melanie Irons, and featuring Tasmanian tourism champion Bianca Welsh and Mitch MacPherson from Stay ChatTY. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:AusPol, Australia, business, council, covid-19, Employees, Government, Impact, industry, mental, mental health, Minister, resilience, Small Business, sustainability, TAS, Tasmania, Tassie, tourism, wellbeinglast_img read more

West African economy tipped for mobile-fuelled boost

first_imgHome West African economy tipped for mobile-fuelled boost Strong mobile subscriber growth and greater access to 3G and 4G data services will increase the mobile industry’s contribution to the West African economy to $51 billion annually in 2022, the GSMA forecast.The Association’s The Mobile Economy: West Africa 2018 report tipped the industry to increase its contribution to the region’s economy from $37 billion in 2017 – equivalent to 6.5 per cent of GDP – to 7.7 per cent of GDP in 2022.Its figures for 2017 reveal a mobile penetration rate of 47 per cent across the 15 countries in the Economic Community of West African States, up from 28 per cent in 2010.Penetration is tipped to rise to 54 per cent in 2025, driven by the region’s large youth population reaching adulthood and taking mobile subscriptions. The report also points to the positive impact of continued investment from local operators in constructing 3G and 4G networks.By 2025, the GSMA said 94 per cent of the regions’ connections will be on 3G or 4G services, compared to 36 per cent in 2017. The increased access and performance of data networks, it added, will also drive business efficiencies across a number of industries including health and finance.GSMA chief regulatory officer John Giusti said growth in the region also relied on the support of authorities.“Connecting a new generation of mobile subscribers across West Africa requires a new era of collaboration between industry and governments in order to implement policies that encourage network expansion, innovation and affordability,” Giusti said.“In addition to the work of operators to expand and improve networks, significant effort from governments at all levels is needed to create the right conditions for continued investment.”The Economic Community of West African States comprises: Benin, Burkina Faso, Cape Verde, Cote d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. La GSMA reclama el uso de la banda de 6 GHz para la 5G Previous ArticleSprint, T-Mobile US merger rumours resurrectedNext ArticleFacebook chief rejects monopoly claims GSMA lays out plan for MWC21 AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 11 APR 2018 Chris Donkin Related Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved… Read more Author GSMAWest Africa GSMA seeks 6GHz boost for 5G Tags last_img read more

A good spring still leaves revenues short $180M for FY21

first_imgFrom top left, Economist Jeff Carr, Senator Ann Cummings, Economist Tom Kavet, Representative Janet Ancel, Senator Jane Kitchel, Governor Phil Scott, and Representative Kitty Toll. Screen Timothy McQuiston, Vermont Business Magazine The good news as far as state tax revenues are concerned is that the strong 2019 economy coupled with tax changes resulted in a windfall of revenues. The bad news is nearly everything else going forward. The three major funds (General, Transportation and Education) are expected to generate about $274.5 million less (-11.2 percent) than anticipated.Economists Jeff Carr on behalf of the Scott Administration and Tom Kavet on behalf of the Legislature presented their updated, consensus state revenue projections to the Emergency Board Wednesday afternoon via Zoom.For those looking for some silver lining, they expect modest population growth and a noticeable increase in home prices, as out-of-staters don’t exactly zoom to Vermont but at least social distance themselves here to some degree permanently.The good news for state revenues was presented by Finance Commissioner Adam Greshin, who said — sticking with the meteorological theme – that the FY20 personal income tax revenues are letting the state enter the FY21 budget process with “the wind at our backs” given the unexpected level of payments that came in by the end June.While Governor Scott lamented as to “what could have been” record revenues, Greshin pointed out that the state’s significant surplus heading into the new fiscal year is about $130 million.Greshin said this was aided by a carry-forward of $60 million of unspent funds, which was about three times what the state otherwise might expect. The state spent less on everything from state parks being closed to travel being limited.Greshin also mentioned that the state took early action during the pandemic with a budget adjustment that raised $84 million to help offset losses.The revenue impacts of the current forecast relative to January 2020 forecasts is usually updated in July. But because of the pandemic and the institution of a “skinny” first quarter budget, the economists were instructed by state leaders to take an extra month. The E-Board is comprised of the governor and the heads of the four “money” committees in the Legislature.Carr said that even with the extra month, “There is no less uncertainty.”The economists stated that while revenue expectations are slightly higher than prior June estimates, the potential losses remain massive: About $182.4 million in the General Fund in FY21 and $100 million in FY22, about $29.3 million in the Transportation Fund in FY21 and $15 million in FY22, and Education Fund losses of about $62.7 million in FY21 and $40 million in FY22.There are about 40,000 Vermonters still receiving unemployment insurance.And the COVID-19 pandemic (the disease caused by the SARS-CoV-2 virus) creates both health and economic uncertainty.Although Russia announced a vaccine yesterday and “warp speed” development efforts are under way in many countries, there is still no firm date that a safe, fully-tested vaccine may be widely available.Viral uncertainty represents the largest single risk to the forecasts herein. Given its central link to economic conditions, Kavet said, “We are constantly tracking the best available information about the virus and the COVID-19 disease it engenders with State officials and other experts and linking this information to potential economic and revenue impacts as we learn more.”Vermont has arguably done better than any other state in the nation in controlling the disease to date. Following a brief initial surge in cases coincident with a regional New York and New England outbreak, new confirmed infections, hospitalizations and deaths per capita are now all the lowest or among the lowest in the nation.This is attributable in part to the exceptional social compliance with the state shutdown directives, as measured by mobility data during the period from late March through early May and acceptance of science-based guidance from State leadership. Unlike many other states, the measured reopening of the economy in Vermont has not caused a rise in any of the critical COVID metrics to date.This good fortune has prompted many second homeowners to “socially distance” in Vermont since March and some to stay as “residents” – at least for the time being. It has also caused a surge in real estate sales from out-of-state buyers seeking a safe haven from more urban areas in which socially distancing is more difficult. This will add to the steadily strengthening residential real estate market in Vermont – and related property transfer tax revenues, as well as personal income and other tax revenues from both residents and non-residents working from Vermont.The state’s stellar health status, however, is highly vulnerable, given the increasing regional flows of people and business across state lines.With schools and colleges reopening, tourism attempting a gradual resumption of commerce and the perceived safety of vehicular over air travel, there will be increasing inter-state flows and our health statistics are likely to more closely resemble the region at some point in the future. It would only take a few outbreaks to completely change this positive narrative and with the amplification of the national press, cast the state in a very different light.Until there is a widely available vaccine, it is likely that there will need to be varying containment measures taken at selected geographic levels within the State as new outbreaks occur. This, in turn, could affect economic activity across a wide range of sectors.The economists fear “the dreaded double-dip recession” if health and therefore economic conditions do not improve.Vermont, and every state, is in need of federal funding to shore up state and local government budgets.Federal Fiscal and Monetary Policy IssuesFederal fiscal and monetary policy have responded with extraordinary speed and magnitude in attempting to offset the negative economic and health impacts the virus has precipitated. More than $4 trillion in federal spending (and more, depending upon how some Federal Reserve actions are quantified) has been unleashed, with a share disproportionate to our population landing in Vermont.With about $1.2B in PPP aid, $1.25B in CARES Act funding, more than $625M in supplemental unemployment assistance, and about half a billion in direct cash payments, the State has experienced its largest inflow of federal transfer payments ever. The effects of this have been myriad and are still playing out, but include critical basic needs income for those unemployed, much higher savings rates, diminished credit card debt and defaults, increased spending on motor vehicles, home improvements, electronics and internet connectivity, internet-based vendors of all kinds, and grocery store purchases (both taxable and otherwise).While the unemployment benefits and significant portions of the CARES Act aid were clearly targeted to those most in need, the PPP funds and direct cash payments were not – with a low bar to qualify for PPP funds and none for direct cash payments. This resulted in many businesses most in need (especially in the restaurant, retail and lodging sectors) not receiving PPP funds and others qualifying despite being minimally impacted.The beneficial impacts from these programs will linger in some sectors, but will dissipate quickly among those most in need. Accordingly, there have been measures offered in Congress regarding further funding since mid-May, but nothing enacted. With an election looming in November and prior congressional compromises on this issue, most expected agreement on a new round of funding prior to the expiration of the supplemental unemployment insurance payments on July 31. Instead, much less impactful Presidential executive orders were issued and congressional agreement on additional funding is now in question. Without significant further federal action, a second recessionary decline is probable.The uncertainty surrounding future federal fiscal policy – including who is elected President in November – is another critical component of the uncertainty in the economic and revenue forecasts herein.Revenue Review• Changes in total revenue by fund groupings and year between the current August 2020 forecast and the prior January 2020 forecast are outlined below. Every major revenue category is at risk for substantial decline in FY21 and FY22 relative to prior forecasts, due to pandemic-related impacts. Across all three major funds, FY21 losses could approach $275M and about $160M in FY22.• Personal Income tax revenue had a stellar year in FY20, benefitting from several enormous tax events and a strong economy in tax year 2019. Deferred filings recorded in July exceeded all expectations and closed the year about $30 million above target. This strength, however, is backward looking, with tax year 2020 likely to generate significantly less taxable income. FY21 PI revenues are expected to drop by double digits, but will post a slightly smaller percentage loss (-9.7%) due to a large internal transfer from Corporate to PI of about $40M expected in August associated with activity in FY20.• This same transfer will exaggerate the reported decline in Corporate tax revenues in FY21 (-68%), with an adjusted decline of about 20%, as corporate balance sheets in the most highly affected industries bleed red ink and others close. Despite some corporate winners in this environment, many large corporate taxpayers have experienced large production reductions, reduced global demand and higher expenses involved in protecting workers and customers. Few other revenue categories are capable of such drastic year to year revenue swings, as carry-forwards dry up estimated payments, and refunding abounds during fiscal year filing periods.• Sales and Use tax revenues benefitted from the vast federal transfer payments to the State in the fourth quarter of FY21, but still closed the year about $9M below target. New revenues from internet retailers associated with the Wayfair decision (including Amazon affiliates), however, contributed more than $35M, leaving FY20 4.8% above FY19 levels. The pandemic underscores the huge and growing benefit in having virtually all internet sales as a part of the S&U tax base. Internet sales now represent more than 11% of all S&U revenues, with huge gains in the fourth quarter of FY20. Although total revenues are expected to drop 3.6% in FY21, internet sales will continue to grow dramatically in this environment.• Meals & Rooms revenues have and will experience the most pronounced and lasting impacts from the COVID crisis. Seasonally adjusted M&R revenues dipped below $115M (at annual rates) in both May and June, closing the year more than 18% below January projections and 10% below FY19 (on a comparable adjusted base). FY21 will show further losses as no quick recovery is likely, despite State reopening policies, until all visitors – including the critical older demographic cohort – feel safe traveling again.• Cigarette and Tobacco tax revenue was unaffected by the pandemic – and the vaping tax yielded more than four times the revenue expected, generating about $3.5M in FY20. This good/bad news, along with little visible sales impact from the higher legal purchasing age, will raise projected revenues slightly over the entire forecast horizon.• Transportation Fund revenues experienced across the board declines in FY20, as both local and tourist travel dwindled in the fourth quarter of the fiscal year. FY20 Gasoline revenues plunged almost 9% below FY19 levels as both price and demand declines converged. A continuation of these conditions through much of FY21 will lead to further declines of about 4% before recovering some ground in FY22. Diesel revenues dropped 3.5% in FY20 and will probably register slight declines in FY21 as overall economic activity slows.Motor Vehicle Purchase and Use revenues declined 5.7% from FY19, despite a solid sales month in June and a very strong July 2020. The temporary federal transfer payments have boosted a wide range of large consumer purchases, but this support will likely dissipate in favor of more targeted assistance in FY21. An FY20 depositing error about $1.3M in civil fine revenue that should have been in the T-Fund Other Revenue category but ended up in G-Fund Fines, overstates the FY20 Other Revenue decline by about 4 percentage points and is the only reason FY22 shows growth.Sources: Economic & Policy Resources, Williston; Kavet & Rockler, Brookfield. 8.12.2020last_img read more

Man United ‘have shown most interest’ in midfielder – Club view…

first_imgThe Norway international has played every minute in the league and has managed two goals and two assists, out of which one goal and two assists were registered in September.He’s nominated for La Liga’s ‘Player of the Month’ for September and his performances have caught the attention of Manchester United, according to Sport.The Catalan newspaper claims the Red Devils ‘have shown the most interest’ so far for the 20-year-old, but warn that Ole Gunnar Solskjaer’s side are not the only ones from the Premier League chasing the midfielder.Manchester City, Liverpool and Arsenal also get a mention and the Gunners view him as a replacement for Mesut Özil.Embed from Getty ImagesIn addition to this, Bayern Munich, Borussia Dortmund, Inter Milan and Atlético Madrid are also looking at the player.Ødegaard’s contract with Los Blancos expires in 2021 and has a €80m release clause, and Real Madrid are aware they have a good business opportunity.That’s because he may struggle to find a place in Zinedine Zidane’s side, which is why Real would be open to the idea of cashing in from Ødegaard’s potential sale.Of course, Sport are a Catalan newspaper, so perhaps they’re talking up the potential exit as a way to say Madrid aren’t going to give their player a Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksTrending TodayForge of Empires – Free Online GameIf You Like to Play, this Strategy Game is a Must-HaveForge of Empires – Free Online GameUndo聽多多 Hearmore.asia1969年前出生的香港居民現可免費試戴頂尖的歐洲助聽器聽多多 Hearmore.asiaUndoCNN with DBS BankWhat Banks Did To Help Corporations Mitigate Future CrisesCNN with DBS BankUndoLoans | Search AdsNeed a loan? Search hereLoans | Search AdsUndoTheTopFiveVPNEnjoy Netflix Now Without Any RestrictionsTheTopFiveVPNUndoSingles50Hong Kong: A 40+ Dating Site That Actually Works!Singles50UndoSmart Tech TrendOver 55? You Have to Try Those Revolutionary Glasses!Smart Tech TrendUndo熱門話題來自日本的抽脂丸讓胖了10幾年的她變成靚女!熱門話題UndoKeto减肥1個簡單的妙招一夜「融化」腹部贅肉(今晚試試)Keto减肥Undo Real Madrid loaned out a handful of players in the summer, one of them Martin Ødegaard who moved to Real Sociedad on a temporary deal.last_img read more