Yang Ming Optimizing Fleet with 14,000 TEU Quartet
- Business & Finance
Yang Ming Marine Transport Corporation will introduce four 14,000 TEU chartered vessels to optimize its fleet in the improving market while returning seven higher-cost chartered vessels in 2019, the company announced in a fleet update.
The first of five 14,000 TEU boxships the Taiwan’s shipping firm chartered from Shoei Kisen Kaisha, the shipowning arm of Imabari, was named at Imabari Shipbuilding in September 2018.
The 14,000 TEU YM Wellbeing is the 16th 14,000 TEU vessel to join Yang Ming’s global container fleet. The vessel was deployed in THE Alliance’s MD2 service in October.
Commenting on the business performance, the Taiwanese shipping company said that its 3rd quarter consolidated revenues came at USD 1.29 billion, a growth of 15.23% compared to the previous quarter. Q3 volumes increased by 9.19% to 1.41 million TEUs compared with the 2nd quarter.
Yang Ming’s net loss after tax for Q3 was USD 30 million, a reduction of 76.16% compared to last quarter, and USD 220 million for the nine-month period.
The year-to-date consolidated revenues increased by 4.12%, year-over-year, to USD 3.45 billion, and volume increased by 11.35%, year-over-year, to 3.92 million TEUs.
The main factors impacting results were unfavorable supply-demand balance with weakening freight rates and escalating bunker prices, which rose 28.38% in the first 9 months year over year.
“Anticipated for the next quarter, the escalating trade war is likely to accelerate Chinese exports to the U.S. and, therefore freight rates and loading factors should improve for the Transpacific sector. In the Asia Europe sector, Yang Ming also expects to see improving rates and volumes as factories resume production following the October China Golden week.
“Considering these factors, Yang Ming’s outlook for Q4 is optimistic. Going forward into next year, Alphaliner’s latest projection predicts an increase of 4.3% in global throughput which will exceed forecast capacity growth of 3.9%,” the company said.