First-Quarter Revenues Announced by Yang Ming

A Yang Ming container ship sailing into port
Updated Published

Yang Ming reported robust financial results for the first quarter, with revenues reaching US$1.39 billion and a net profit after tax of US$298.42 million, translating to an EPS of NT$2.69.

In the initial three months of the year, Yang Ming observed that the container shipping industry faced significant challenges due to the crisis in the Red Sea, causing vessels to reroute via the Cape of Good Hope and consequently reducing available vessel capacity. 

Despite these challenges, the company noted an improvement in demand, attributed to the gradual recovery in the manufacturing PMI of major economies, effective inventory destocking by clients, and a resumption of manufacturing activities following the Chinese New Year.

Alphaliner forecasts that capacity supply growth in the maritime sector will reach 9.7% in 2024, significantly outpacing the expected demand growth of 3%. However, the industry continues to face uncertainties, including geopolitical issues that contribute to vessel delays and port congestion. Additionally, despite improvements in water levels, restrictions on transit through the Panama Canal persist.

Yang Ming anticipates these conditions will continue until 2025, affecting vessel supply and the stability of services. In response, the company stated it remains "cautious and actively adjust business strategies for vessels, containers, and terminals to provide global customers with stable and efficient transportation services."