Yang Ming: profit amidst shipping slump
The Taiwan-headquartered carrier Yang Ming reported a consolidated revenue of NTD 35.9 billion (USD 1,160.72 million) in Q3/2023. Net profit amounted to NTD 2.81 billion (USD 90.73 million).
For the first three quarters of 2023, the consolidated revenue was NTD 107.9 billion (USD 3,488.55 million) and net profit reached NTD 6.08 billion (USD 196.49 million). The shipping company remained in the black in Q3/2023, despite feeling the effects of the ongoing market situation.
In a press release, Yang Ming stated: “The freight rates were down compared to Q3/2022, leading to a corresponding decrease in revenue.”
Therefore, it is not surprising that Yang Ming’s outlook is on the defensive. With a look at the growth rate in the supply of global container ship capacity, the company spoke of a “significant gap between supply and demand growth rates that will remain in 2024, presenting an operational challenge that international shipping companies will need to address, as the issue of supply-demand imbalance persists.”
The carrier underlined its gloomy outlook with the recent continuous rise in the Shanghai Containerised Freight Index (SCFI), saying that “short-term market performance is also in line with the trend.” (cd)