Taiwanese ocean carrier Yang Ming Marine Transport Corporation (Yang Ming) registered a net loss of NTD3.81 billion (USD 129.1 million) for Q2.
However, the Q2 consolidated revenues total NTD33.6 billion (USD1.14 billion) was up 1.12% from the same period in the previous year. The business volume of 1.29 million TEUs rose 11.84% year-on-year.
In the meantime, for the first half of 2018, Yang Ming’s consolidated revenues totaled NTD64.6 billion (USD2.19 billion), up 1.81% compared with the same period in the previous year. The first half 2018 business volume totaled 2.52 million TEUs, climbing 10.28% from the same period in the previous year. The net loss for the first half 2018 was NTD 5.76 billion (USD 195.1 million).
Unexpected higher fuel prices drove up operating costs in the first half of 2018. Compared with the same period last year, the average fuel price in the first half year increased about 25%.
Additionally, the shipping industry still shows an oversupply in tonnage, and faces arduous and continued challenges this year. Alphaliner recently forecasted the supply at 5.9% and demand at 4.6% in 2018. Average freight rates in the first half year were about 10% lower compared with the same period last year.
Circumstances surrounding the global trade economy also present challenges and difficulties for the shipping industry. However, since demand is expected to grow at 4.2% and with supply growth predicted at 3.7% in 2019, the economic forecast will be more optimistic, with the shipping industry to benefit.
Yang Ming continues its efforts to lower costs and increase revenue. Yang Ming vessels are taking advantage of slow steaming to reduce bunker consumption and harmful emissions.
Planning for the future, Yang Ming has approved the construction of ten 2,800 TEU containerships, equipped with advanced eco-friendly equipment which will comply with environmental regulations. These vessels will be deployed in the Intra-Asia market.