Yang Ming recorded a net loss of NTD1.95bn (US$63m) during the first half of 2019, citing weaker demand owing to the US-China trade war along with market overcapacity.
The result actually means that the carrier has reduced its financial losses by 66% compared to last year, with consolidated revenues rising by 17% to NTD75.48bn (US$2.4bn). Business volumes also increased by 5% to 2.64m teu.
Explaining the losses, the Taiwan-based company cited Alphaliner’s projections for 2019, with global throughput estimated to grow at 2.5% while capacity is predicted to grow at 3.1%.
It noted further in a statement: “Market demand is weaker than expected since the ongoing US-China trade conflict has weighed on the global economy. In addition, the slight rise in bunker fuel prices affected Yang Ming’s operating costs.”
The exercise of the new IFRS 16 accounting standard also had a negative impact on Yang Ming’s half-year profitability by around NTD0.6bn (US$19m).
Since last year, the company has begun the deployment of its new eco-type containerships while returning some of its higher cost chartered vessels.
It is aiming to improve competitiveness through strategic fleet deployments along with THE Alliance’s expanded partnership and future new service network.