Noted after reading the Report “Impact of oil prices on logistics stocks” from VPBs

When oil prices are low, logistic stocks tend to outperform the market and vice versa (ngược lại).

Oil price fluctuations tend to have different levels of impact on the various sub-sector of logistics sector:

• Port operation: The impact is minor as most ports currently us electric-run equipment rather than oil. Fuel costs account for 30%-40% of total cost in case of Haiphong Port JSC, 7%-8% of DXP, VSC.
• Oil and gas shipping: the reduction of oil prices will push up the demand for oil and gas transportation, leading increased revenues in the last quarter of 2014 and going into 2015. PVT, GSP, VIP, VTO, PJT have high ratios of time charter or bareboat leasing, which means that they do not have to bear fuel costs.
• Container and bulk cargo transportation (vận chuyển hàng rời): this is the group that benefits the most as the fuel costs normally account for a major part of total costs. GMD, VOS, VST, Vinaship JSC have high ratios of their fleets under voyage charter condition, which means that the companies have to bear all of the fuel costs.
• Airlines industry: good in 2015.

Some logistics concepts:

A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs (excluding stevedoring), fuel costs and crew costs. The payment for the use of the vessel is known as freight. A voyage charter specifies a period, known as laytime, for loading and unloading the cargo. If laytime is exceeded, the charterer must pay demurrage. If laytime is saved, the charter party may require the shipowner to pay despatchto the charterer.[1]

A time charter is the hiring of a vessel for a specific period of time; the owner still manages the vessel but the charterer selects the ports and directs the vessel where to go. The charterer pays for all fuel the vessel consumes, port charges, commissions, and a daily hire to the owner of the vessel.

A bareboat charter or demise charter is an arrangement for the hiring of a vessel whereby no administration or technical maintenance is included as part of the agreement. The charterer obtains possession and full control of the vessel along with the legal and financial responsibility for it. The charterer pays for all operating expenses, including fuel, crew, port expenses and P&I and hull insurance. In commercial demise chartering, the charter period may last for many years; and may end with the charterer acquiring title (ownership) of the ship. In this case, a demise charter is a form of hire-purchase from the owners, who may well have been the shipbuilders. Demise chartering is common for tankers and bulk-carriers.

Source: VPBs, Wikipedia