Major Taiwanese container line Yang Ming Marine Transport has followed other owners in posting a huge drop in earnings.
The company said net profit in the third quarter was TWD 2.81bn ($90.73m), plunging from TWD 49.8bn in 2022 as markets fell from record levels.
Revenue for the third quarter was TWD 35.9bn, down from TWD 99.81bn the year before.
This was stable compared to the previous two quarters.
But Yang Ming said freight rates had fallen since 2022.
Nine-month earnings were TWD 6.08bn, the company added.
Consultancy Alphaliner believes the global container ship capacity growth rate in 2023 will be 8.4%.
Demand will only increase by 1.4%, however.
In 2024, the company is projecting fleet growth of 9.1% and a 2.2% rise in demand.
“A significant gap between supply and demand growth rates will remain in 2024, presenting an operational challenge that international shipping companies will need to address, as the issue of supply-demand imbalance persists,” Yang Ming said.
Off-season has arrived
Freight rates have been rising in the short-term, but the sector is now staring the traditional off-season for the US and Europe in the face with the arrival of the fourth quarter, the owner added.
Container pricing and volume trends require further observation, Yang Ming believes.
The company also expects the overall development of the shipping market to be affected by ongoing high inflation and international geopolitical tensions.
“Against this backdrop, Yang Ming will continue to closely monitor the changes in the regional markets, while maintaining real-time operational flexibility in terms of route and fleet planning in order to maintain top performance and global competitiveness, as well as abide by international competition regulations,” the owner said.
