8 March 2024 (Lloyd's List) - YANG Ming Marine Transport Corp has offered a cautious outlook on markets in 2024 as the Taiwanese carrier reported a sharp drop in earnings.
“Although the International Monetary Fund slightly raised its outlook for global economic growth to 3.1%…uncertainties persist due to geopolitical factors and extreme weather affecting global trade and shipping routes,” said Yang Ming in a statement.
Citing data from consultancy Alphaliner, the Taipei-listed line pointed out that global boxship capacity supply is expected to grow 9.7% this year, outpacing a 3% demand growth.
“With the surplus supply, container shipping industry remains challenging for 2024,” it said.
The company reported net profits of TW$4.8bn ($153.3m) for 2023, a significant drop from TW$180.6bn gains a year ago, when freight rates were still bolstered by the pandemic-led market boom.
Revenue was down more than 60% to TW$375.9bn.
“The company will proactively adapt to market conditions by strengthening its business strategies and adjusting global service network and refining fleet planning,” said Yang Ming.
The company is part of The Alliance, which is facing challenges in maintaining network and service scale, after key member Hapag-Lloyd decided to leave and form a new grouping with Maersk, effective starting February 2025.
