Yang Ming Marine Transport Corporation (Yang Ming) on May 12 held the 383rd Board meeting that passed the Q1 2023 financial report and approves the procurement of LNG dual-fuel container vessels.

According to this report, the consolidated revenues in Q1 totaled NT$ 36.95 billion (US$ 1.22 billion). The net profit after tax stood at NT$ 3.4 billion (US$ 112 million), with an EPS of NT$ 0.97.

The demand in the global market registered a downward incline because of the ongoing war between Ukraine and Russia, the consecutive imposition of interest rate hikes by the U.S. Federal Reserve, and the current status of customer inventory, all of which stalled global economic recovery. The maritime transport market in Q1 suffered delayed shipping and operational constraints due to the Lunar New Year holiday, factories adjusting shipping schedules, and manpower allocation driven by market demand. As a result, the revenues were reduced for the entire quarter. As different sectors gradually resumed business in March, there was a slightly increase in the overall operation volume and the operation remained positive in Q1.

According to the latest report from Alphaliner, an oversupply still hold sway in the maritime transport market, with supply and demand growing respectively by 8.3% and 1.4%. As the supply of ships are still being impacted by the increasingly stringent international environmental regulations, the world’s maritime shipping operators comply with such laws by decreasing speed or expediting the replacement of old ships. This will help balance the supply and demand. In addition, with the IMO addressing issues concerning GHG emission goals and carbon reduction in the coming July, the supply of ships in the future could be impacted. Also, according to Alphaliner’s newest data from April 2023, around 4.4% of the world’s container fleets lie in idle, gradually down from the recent peak of 6.4%, indicating signs of recovery in the maritime transport market. The operational performance will be positively benefitted if the global supply chains’ inventory absorption for the second half of the year can continue and the performance in the traditional peak season can be maintained. However, given the uncertainties affecting the global maritime transport market such as geopolitics, regional economy, and international conservation laws, due caution and proper response are of utmost importance.

In line with Yang Ming’s global fleet deployment plan and the goal towards net-zero emission, the board meeting approved proceeding subsequent procurement procedures of five LNG dual-fuel container vessels, following the public and transparent international bid evaluation process. With these new ships, Yang Ming will be able to optimize its fleet allocation, enhance the fleet’s overall competition, and operate more sustainably and environmentally-friendly by reducing energy consumption and carbon emission.

Yang Ming Group press release