Benefiting from the continuous increase in freight rates, Yang Ming Marine Transport's profit surged 50 times in April, setting a new monthly high.
Yang Ming released its financial report for April, with monthly revenue of NT $21.698 billion (about RMB 5.036 billion) and net profit after tax of NT $8.867 billion (about RMB 2.058 billion), a year-on-year increase of 5061.88%.
In the first quarter of this year, Yang Ming's revenue was NT $62.282 billion (about RMB 14.457 billion), and its net profit after tax was NT $24.517 billion (about RMB 5.691 billion), which turned losses into profits successfully and was due to market expectations.
Although the peak season surcharge in April has not yet begun to be collected, and the US long-term contract price has not started to double, Yang Ming’s profit performance in April still exceeded the single-month level of the previous three months. Revenue in June will also jump, and Yang Ming is expected to deliver outstanding results in the second quarter.
Yang Ming also said that the global container market is still short of ships, containers and port congestion. In particular, the lack of terminal operation capacity in North America has been the main reason for port congestion since last year.
At present, the phenomenon of port congestion has spread to Asia, and the efficiency of terminal operation has been reduced, resulting in ship congestion, which is not easy to solve in a short period of time, causing the freight rate easy to rise and difficult to fall, and even the return freight rate is at a high level.
Yang Ming is also ready to meet the business opportunities, respond to the medium and long-term operation development and strengthen the transport capacity. Through cooperation with professional shipowners, Yang Ming has ordered 14 11000TEU container ships.
This series of container ships will be gradually completed and delivered from 2020, which will accelerate the renewal of Yang Ming shipping fleet and achieve the comprehensive effect of energy and fuel saving and reducing the cost.
Source: Sarah Yu, XINDE MARINE NEWS
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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