Yang Ming saw its volumes decline by 15% and revenues by 12% year-on-year (YoY) in the second quarter of the 2020 due to the COVID-19 pandemic.
According to its latest financial results, the Taiwan-based carrier said it had made “significant progress” in the container transport sector, despite the pandemic.
It carried approximately 2.38 million TEU, a YoY drop of 9.8%. However, it claimed relatively lower fuel costs limited the damage, despite lower freight rates
Consequently, its losses overall were $2.25 million in the second quarter and the in first half of 2020 $29.4 million.
The carrier said higher freight rates, in particular on transpacific routes, presented an opportunity to grow in the medium term.
In order to seize the opportunity, it said it will continue its business strategies to increase cargo marginal contribution and expand its customer base.
Meanwhile, the company will aim to “efficiently control its operating costs”, such as optimizing container flows to minimize container repositioning cost, feeder/inland transport and fuel consumption reduction, anticipating better performance in container transport sector in the third quarter.
Moreover, Yang Ming has accelerated its fleet optimization plan by adding fourteen 11,000 TEU chartered vessels and ten 2,800 TEU self-owned newly built vessels starting 2020.
These new vessels with higher engine efficiency will achieve the advantages of lowering fleet average age and fuel cost savings, and consequently enhance the company’s long-term competitiveness.