Is Yang Ming close to collapse?

   Yang Ming Marine Transportation Corp. offers a top-notch, scheduled container transportation service across Asia, Europe, America, and Australia, worthy of trust by customers.

   After six years of losses, the container shipping industry ended 2017 with a profit of about US$7 billion and Yang Ming completed a profitable 2017 with US$ 10.98 million a 13.59% up when compared to 2016.

   But this year the Taiwan ocean container carrier, posted a second-quarter net loss of US$124 million. One of the main causes was the average fuel prices has gone up a 25% in the first half from a year ago and average freight rates were about 10% lower.

   According to Bruce Barnard, Special Correspondent at www.joc.com on August 10 2018, “Yang Ming said it’s taking advantage of slow steaming to reduce bunker consumption and will redeliver seven chartered vessels starting in the fourth quarter of 2018. Also the second-half performance is expected to improve, due to stronger peak season demand and less new ship capacity entering the market, which should boost freight rates, the carrier said. 

   Yang Ming says it anticipates a better operating performance and results in the near term, due to the improving supply/demand ratio and a recovering shipping market in 2019. The carrier has approved the construction of 10 2,800-TEU vessels and will take delivery of five 14,000-TEU chartered ships beginning in the fourth quarter of 2018, and 10 12,000-TEU units in 2020 and 2021.”

  Soon we will know if this year was worth it or fruitless for the Taiwanese giant. 

Amparo Talavera

Noemí García

Sources:

worldmaritimenews

joc

YangMing