Yang Ming Marine Transport Corporation has released its financial report for the first half of 2023.
As a result, consolidated revenues in the second quarter totaled NT$ 35.05 billion ($1.15 billion). The company’s net loss after tax and loss per EPS were NT$ 0.13 billion ($4.27 million) and NT$ -0.04, respectively.
For the first half of 2023, consolidated revenues were NT$ 72 billion ($2.36 billion). After-tax net profit and earnings per share were NT$ 3.27 billion ($107.04 million) and NT$ 0.94, respectively.
Inflation and global economic uncertainties weighed heavily on the marine industry in the first half of the year.
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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 per cent upward revision of global economic growth rate for 2023, the overall inflation rate is projected to decrease from last year’s 8.7 per cent to 6.8 per cent.
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 the analytical company Alphaliner’s growth prediction, global supply is expected to expand by 8.5 per cent this year, outpacing demand growth of 1.4 per cent.
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As a result, oversupply continues to dominate the marine market, owing to strong inflation, which reduces family spending power and demand due to continued inventory disposal throughout industrial chains.
However, after the Russia-Ukraine conflict is ended, the requirement for rebuilding materials during the post-conflict recovery phase is projected to drive container shipping demand.
In response to the changes in supply and demand in the shipping market, Yang Ming has stated that it 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.
According to Yang Ming, there will be timely and necessary adjustments to route distribution and fleet planning to increase its competitiveness and operating performance.
