Logistics software company WiseTech Global stands to be a rare beneficiary of the supply chain crisis, with founder Richard White forecasting greater investment in ships and automation will bolster the cargo sector and his firm long term.
But Mr White, who reported a jump in profit, revenue and a dividend for WiseTech on Wednesday, cautioned that high charges at ports and from shipping lines were a problem for the industry, which has been wracked by coronavirus disruptions for the last two years.
WiseTech chief executive Richard White is optimistic about the future of the supply chain.Credit:Natalie Boog
“I think there’s a very strong and very global concern that the cost changes in international logistics particularly around the ocean carriers seems problematic and it’s translated into port service charges.
“That’s not really a labour issue with Australia or anywhere else for that matter,” Mr White said. “It’s really that service charges at the ports have risen dramatically, like hundreds of per cent in some cases.
“Many of the shipping lines have made more money in the last two years than they’ve made in the last 50 years. That’s got to be a concern for regulators, and that’s not just Australia, that’s everywhere.”
Australia’s Productivity Commission is examining the country’s ports system to see if it is holding back the economy.
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Competition would eventually bring prices back to normal as shipping firms invest in more capacity, Mr White predicted.
More clients signing up to help automate their freight, along with cost reductions, a pricing change, existing clients taking on more features and seats in its flagship software product CargoWise led WiseTech to improve its full-year earnings guidance. It is now forecasting growth of between 33 and 43 per cent.
WiseTech reported an 18 per cent jump in revenue to $281 million for the six months to the end of last year, along with a 74 per cent increase in net profit to $77.4 million. It announced an interim dividend of 4.75 cents a share payable on April 8, its highest ever.
Shares closed up 4.18 per cent to $44.58.
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