An Evaluation of the Business Strategies of Dry Bulk Shipping Companies Registered in Indonesia in Maximizing Business Growth During the Coal Price Boom

Abstract

The coal price boom since 2021 increased production, cargo volumes, and freight and time charter rates; however, not all dry bulk shipping companies were able to convert these opportunities into optimal revenue and profit growth. This study analyzed the effect of coal prices on business growth and assessed appropriate business strategies. Secondary data comprised the Indonesian Coal Reference Price and financial indicators, including revenue, gross profit, sales growth, and gross profit margin, for the 2013–2023 period, supported by audited financial statements and annual reports of five listed shipping companies from 2018 to 2023. The analysis employed Spearman’s rank correlation, simple linear regression, comparative financial ratio analysis, and SWOT analysis. The results showed that coal prices significantly affected BSML’s and HAIS’s revenue, TPMA’s gross profit, and HAIS’s sales growth. BSML and HAIS expanded their operations through third-party vessels, while TPMA maintained performance through vessel utilization and operational efficiency. During 2021–2023, HAIS recorded average revenue growth of 47.0% and a return on equity of 17.8%, while TPMA recorded 20.4% and 14.2%, respectively. Over the 2018–2023 period, TPMA achieved an average gross profit margin of 50.6% and an EBITDA margin of 43.0%. The recommended strategy was to utilize chartered vessels for short-term expansion, followed by gradual investment in owned vessels and improvements in operational efficiency.