Yang Ming suffers US$213.7 million loss, though volume up 11pc
TAIWAN's Yang Ming
Marine Transport Corporation posted a 2018 net loss for 2018 of TWD6.59 billion
(US$213.7 million), drawn on revenues of TWD141.83 billion, up 8.21 per cent
year on year.
Results were hard hit
by higher global fuel prices, which increased by 31.1 per cent compared with
the previous year.
Volumes in 2018
increased to 5.2 million TEU, up 11 per cent year on year when compared to 4.7
million TEU handled in 2017.
"Despite the 11
per cent volume growth due to strategies implemented in 2018, Yang Ming's
operating margins were eroded by higher bunker costs," Yang Ming said in a
unsettling geopolitical risk factors, including the ongoing US-China trade war
and Brexit, continue to impact bunker fuel prices and conditions in global
trade, said the company.
In addition, the
International Maritime Organisation (IMO) 2020 sulphur regulations will
inevitably increase operating costs, the company explained.
Based on the latest
forecast from Alphaliner, the supply growth rate in 2019 is projected at 3.1
per while the demand rate will grow at around 3.6 per cent. Therefore, the
trend in global shipping is moving towards a more balanced level of supply and
The sulphur cap could
prompt scrapping of older, inefficient vessels in the near term. This would add
complexity and challenges to the shipping market, Yang Ming believes.
"In light of the
uncertainties surrounding global trade and the pressure on bunker prices, Yang
Ming remains cautiously conservative on its outlook for 2019," the carrier