Yang Ming Marine Transport Corporation (Yang Ming) held the 397th Board Meeting today (8/12) to approve and pass its financial report for the first half of 2024. The consolidated revenues in Q2 stood at NT$ 52.59 billion (US$ 1.65 billion), up by 50% from the same period of last year. The Company’s after-tax net profit and EPS came to NT$ 13.89 billion (US$ 435.6 million) and NT$ 3.98, respectively. The consolidated revenues for the first half of 2024 reached NT$ 96.39 billion (US$ 3.02 billion), up by 34% from the same period of last year. The Company’s after-tax net profit and EPS for this period were NT$ 23.27 billion (US$ 729.82 million) and NT$ 6.66, respectively. Due to strong demand and increased freight rates in the first half of the year, Yang Ming reported impressive profitability compared to the same period last year.
According to the latest forecast released by the International Monetary Fund (IMF), the global economic growth rate is expected to remain stable at 3.2% in 2024. Asia’s emerging market economies continue to be the main drivers of global growth. The shipping market is forecasted a supply growth rate exceeding demand growth by about 7.6% in 2024. However, Red Sea crisis has led to vessel rerouting and port congestion, which has absorbed part of the overcapacity. Nevertheless, the world economic situation remains precarious. Persistent service prices and trade tensions are slowing the pace of disinflation, increasing inflation risks. The U.S. economy, after showing strength, now appears to be slowing, with the Manufacturing PMI dropping to a new low this year and the unemployment rate rising again. Additionally, the upcoming U.S. presidential election could add further uncertainties to the economic situation. Despite the modest economic growth in the Eurozone, its strength remains to be seen. Recent geopolitical tensions may also contribute to growing instability.
In response to the volatile shipping market, Yang Ming is committed to enhancing its service competitiveness. The Company aims to strengthen its fleet management by optimizing fleet resources, improving service advantages and addressing emission reduction trends. To this end, Yang Ming has deepened its strategic partnership with shipowners and the board has authorized the purchase of two long-term chartered 11,000 TEU vessels today. In addition to the previously acquired five 14,000 TEU and three 11,000 TEU vessels, this purchase will strengthen service competitiveness and streamline fleet resources. Furthermore, it will help address emission reduction requirements and provide flexibility for future environmental retrofitting needs, ensuring compliance with regulatory and technical standards. Yang Ming will continue its fleet optimization plan with energy-efficient and alternative-fuel-powered vessels to support the Company’s mid- to long-term business development, offering more comprehensive and environmentally friendly transportation services for global customers.