Yang Ming Marine Transport Corporation has announced its plans to introduce four megaships in 2019, following an increase in revenue during Q3 2018.
With seven higher-cost ships set to be returned by Yang Ming next year, the quartet of 14,000 TEU vessels are expected to optimize the carrier’s fleet.
In addition to this, the company expects the implementation of blockchain and chatbot technologies to yield a more convenient and efficient service in the future.
In Q3 2018, Yang Ming posted consolidated revenues of USD $1.3 billion, a growth of 15.2% compared to the second quarter of the year.
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However, the shipping company still suffered a net loss of $30 million between July and September, contributing to an overall loss of $220 million during the first three quarters of 2018.
One of the main reasons for the loss, according to a statement by Yang Ming, was an “unfavourable supply-demand balance”, with weakening freight rates and escalating bunker prices adding $134 million to the carrier’s operating costs.
Yang Ming’s outlook for Q4 is more optimistic, with the cooling of a China-US trade war predicted to accelerate Chinese exports to the US, therefore improving freight rates in the transpacific sector.
Yang Ming Earnings Plummet #PTIDaily SEE MORE: https://t.co/rT98H6fIjL#shipping #finance #carriers pic.twitter.com/kDyxR2H6iq
— Port Technology (PTI) (@PortTechnology) August 14, 2018
Alphaliner has also projected a 4.3% increase in global throughput for the next year, which will exceed the forecasted capacity growth of 3.9% expected for 2019.
Yang Ming is responding to the uncertainties faced by global shipping, in 2018, by making adjustments to its current strategy.
A statement from the company read: “Taking advantage of opportunities in the fast-growing economies in Southeast Asia, the company will optimize its Intra-Asia service network.
“Concurrently, Yang Ming’s subsidiary, YES Logistics Corp., established joint ventures in Vietnam and Indonesia earlier this year to better integrate its logistics supply chain in the region, while Yang Ming continues to cooperate with other transportation-related enterprises to seize upon investment opportunities in the ASEAN countries.”
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