Yang Ming Cuts Losses, Optimizes Fleet
Taiwanese ocean shipping company Yang Ming Marine Transport Corporation said that its 3rd quarter net loss after tax for Q3 was USD 30 million, a reduction of 76.16% compared to last quarter, and USD 220 million for the nine-month period.
However, in Q3 2018, Yang Ming posted consolidated revenues of USD $1.3 billion, a growth of 15.2% compared to the second quarter of the year.
According to a press statement Yang Ming, one of the main reasons for the loss was an “unfavourable supply-demand balance”, with weakening freight rates and escalating bunker prices adding $134 million to the carrier’s operating costs.
Meanwhile, the Keelung-based shipper said that it will introduce four 14,000 TEU chartered vessels to optimize its fleet in the improving market while returning seven higher-cost chartered vessels in 2019.
Responding to many uncertainties faced by global shipping throughout 2018, Yang Ming has made adjustments to strengthen its strategies. Taking advantage of opportunities in the fast-growing economies in Southeast Asia, the company will optimize its Intra-Asia service network.
Concurrently, Yang Ming’s subsidiary, YES Logistics Corp., established joint ventures in Vietnam and Indonesia earlier this year to better integrate its logistics supply chain in the region, while Yang Ming continues to cooperate with other transportation related enterprises to seize upon investment opportunities in the ASEAN countries.
Partnering with Taiwan International Ports Corporation, Ltd. (TIPC) and Indonesian investors, Yang Ming established a depot in Surabaya, Indonesia under the joint venture, P T. FORMOSA SEJATI LOGISTICS, in May 2018. Yang Ming also collaborated with TIPC and other transportation enterprises such as T.S. Lines Co., Ltd., Taiwan Navigation Co., Ltd. and Chunghwa Post Co., Ltd., to establish Taiwan Foundation International Pte. Ltd., a joint venture holding company intended to deepen and extend into the Southeast Asia market.
Through these cooperatives, Yang Ming endeavors to improve its cost structure, maximize investment revenue and profits, and effectively navigate the continuing challenges and risks facing the shipping industry.
Finally, Yang Ming’s application of innovative technologies such as Blockchain and Chatbot is expected to yield more convenient and efficient quality service.
