WITH THE container shipping industry capacity growing by around 3 million TEUs, it according to Yang Ming Marine Transport Corporation.
The corporation, in its 2024 financial report said the company had delivered a strong operational performance helping it to consolidated revenues of US$6.94 billion and a net profit after tax of US$ 1,999.35 million.
Yang Ming reported that amid the challenge, factors such as vessel rerouting due to the Red Sea crisis and congestion at key ports helped absorb excess capacity.
“Additionally, the robust economic performance of emerging Asian markets contributed positively to global economic growth,” the report said.
“The first three quarters of 2024 were marked by favourable market conditions with rising cargo volumes and freight rates.
“In response to these dynamics, Yang Ming proactively optimized its service network and fleet deployment, ensuring service reliability and capitalizing on market opportunities to enhance operational performance.
“Considering the Company’s full-year profitability, future fleet renewal plan, and the ongoing uncertainties in the global trade environment, the Board has approved a cash dividend of NTD 7.5 per share (US$0.23) to uphold financial stability and long-term sustainability.
“Looking ahead, the International Monetary Fund’s (IMF) January 2025 World Economic Outlook (WEO) projects a global economic growth rate of 3.3% for 2025. On the supply side of the shipping sector, Alphaliner’s latest analysis forecasts a 5.7% increase in shipping capacity and a 2.5% growth in demand for 2025.
“However, significant uncertainties continue to affect the global trade outlook. Key risk factors include US tariff developments, which may lead to potential inflationary pressures due to rising operational costs and impact economic growth and trade activities.
“Meanwhile, the recent halt of the Israel-Hamas ceasefire agreement has increased uncertainties regarding carriers resuming operations in the Red Sea. Most carriers continue to reroute via the Cape of Good Hope to mitigate security risks. Drewry’s January report suggests that once transit routes through the Red Sea resume, carriers may accelerate the scrapping of older tonnage to align with normalized demand.
“Moreover, with the European Commission’s Fit for 55 initiatives implementing the EU Emissions Trading System (EU ETS) for shipping in 2024, carriers are required to submit carbon allowances based on their vessels’ CO₂ emissions. With the commencement of
FuelEU Maritime in 2025, carriers face the challenge of meeting GHG intensity thresholds or paying penalties. The regulation sets lifecycle greenhouse gas (GHG) emission intensity standards for marine fuels, with progressively stricter thresholds every five years. Furthermore, the International Maritime Organization (IMO) is considering a GHG emissions levy on the shipping industry starting in 2027, highlighting the need for a transition to sustainable fuels.
“In response to the evolving geopolitical landscape and global supply chain challenges, Yang Ming reaffirms its commitment to strengthening its core business, enhancing existing alliances, and exploring new collaborative opportunities.
“The company is accelerating its regional route strategy and penetrating emerging markets to refine its global service network. Concurrently, Yang Ming continues to optimize fleet deployment to improve operational efficiency.
“Following the Board’s internal review of environmental regulations and the development of alternative energy technologies, the company has advanced its vessel optimization plan for deploying up to thirteen vessels.
“The plan includes up to six 8000 TEU-class dual-fuel-ready vessels and up to seven 15,000 TEU-class LNG dual-fuel-fitted vessels. This deployment is expected to strengthen Yang Ming’s core business, mitigating energy risks across the fleet, and maintain flexibility in future vessel types and fuel options.
“Through various strategic initiatives, Yang Ming aims to enhance its overall competitiveness while delivering efficient, sustainable, and secure services to its global customers.”
