The following release was published by Yang Ming:
Yang Ming Marine Transport Corporation (Yang Ming) announced its financial report for the first half of 2023. Accordingly, the consolidated revenues in Q2 stood at NT$ 35.05 billion (US$ 1.15 billion). The Company’s after-tax net loss and that per EPS came to NT$ 0.13 billion (US$ 4.27 million) and NT$ -0.04, respectively. The consolidated revenues for the first half of 2023 stood at NT$ 72 billion (US$ 2.36 billion). The Company’s after-tax net profit and that per EPS were NT$ 3.27 billion (US$ 107.04 million) and NT$ 0.94, respectively. The maritime industry in the first half of the year was impacted mainly by inflation and uncertainty in the global economy. Additionally, freight rates declined compared to the same period last year, leading to a decrease in revenue compared to the corresponding period last year.
According to the data released by International Monetary Fund (IMF) World Economic Outlook in July 2023, despite the 3% upward revision of global economic growth rate for 2023, the overall inflation rate is projected to decrease from last year's 8.7% to 6.8%. However, the persistent inflationary pressures have prompted the world’s central banks to implement interest rate hike policies, thereby impacting economic activities. As a result, the overall momentum for economic recovery over the next two years still appears relatively weak.
According to growth forecast of the analyst firm Alphaliner, the overall supply is predicted to grow by 8.5% this year, surpassing the demand growth of 1.4%. As such, oversupply still dominates the maritime market, which is caused by high inflation weakening household purchasing power and demand due to ongoing inventory liquidation within industrial chains. However, once the Russia-Ukraine conflict comes to an end, the need for reconstruction materials during the post-war recovery period is expected to boost container shipping demand.
In response to the changes in supply and demand in the shipping market, Yang Ming will continue to assess the situation with utmost care. The company will also be attentive to global economic developments, geopolitical influences, changes in supply chains, and environmental sustainability requirements, among other trends. There will be timely and necessary adjustments to route distribution and fleet planning to increase the Company’s competitiveness and operating performance.
Source: Yang Ming