Yang Ming Marine Transport Corp has seen a substantial reduction in second quarter losses, but still ended the quarter in the red.
The Taiwanese-based shipowner lost TWD 1.3bn ($41m) for the three month period, a year-on-year reduction of over 66%.
Consolidated revenue for the second quarter was TWD 40.4bn, up 20.24% compared to the same period of last hyear.
“This result reflects Yang Ming’s improved cost structure driven by its fleet optimization plan,” the company said.
“Since last year, Yang Ming has begun the deployment of its new eco-type containerships while returning some of its higher cost chartered vessels.
“Through its strategic fleet deployment along with THE Alliance’s expanded partnership and future new service network, Yang Ming will continue to enhance business competitiveness.”
For the first six months of 2019 Yang Ming booked a net loss of just under TWD 2bn, despite revenue increasing 16.8% to TWD 75.5bn.
Container volumes increased 5% year-on-year in the second quarter to 1.35mteu. This helped interim volumes improve also by 5% to 2.35mteu.
“The container shipping market remains under pressure due to an oversupply of capacity in the first half year,” Yang Ming said.
“According to its latest projection for 2019, global throughput is estimated to grow at 2.5% while capacity is predicted to grow at 3.1%.
“The market demand is weaker than expected since the ongoing US-China trade conflict has weighed on the global economy.”
In addition, Yang Ming said the slight rise in bunker fuel prices had impacted its operating costs.
