On March 12, Taiwan Province of China-based shipping company Yang Ming Marine Transport Corporation (Yang Ming) released its 2024 annual financial results and final employee benefits proposals, and announced the continuation of its plan to build 13 new container ships.
According to the financial results, Yang Ming’s FY2024 consolidated operating revenue was NT$222.706 billion (approximately US$6.755 billion), net profit after tax was NT$64.179 billion (approximately US$1.947 billion), and earnings per share (EPS) after tax was NT$1.838. The Company’s full-year operating performance was strong with excellent profitability. The Board of Directors also resolved to pay a cash dividend of NT$7.50 per share.
At the same time, Yang Ming also announced that employee compensation will be 1% of pre-tax surplus, and the total number of full-time employees in 2023 is about 1,634, with an average of about NT$487,600 (US$14,800) per person, which is equivalent to an additional 6.5 months of mid-year bonuses.
Yang Ming said that although the global container shipping market added about 3 million TEUs of new capacity in 2024, resulting in capacity growth exceeding demand growth. However, due to the Red Sea crisis and port congestion, the increased capacity has been well absorbed. In the first three quarters of 2024, the market environment is relatively favorable, with both cargo volume and freight rates on an upward trend. In the face of market changes, Yang Ming actively optimizes its service network and fleet deployment to ensure service stability and seize market opportunities to improve operating performance.
Looking ahead, the global trade outlook remains characterized by a number of uncertainties. Key risk factors include the tariff policy of the United States, which could bring about inflationary pressures due to higher operating costs, thereby affecting economic growth and trade activity.
In addition, the recent breakdown of the ceasefire agreement between Israel and Hamas has increased uncertainty over whether shipping lines will resume Red Sea routes. Currently, most shipping companies still choose to go around the Cape of Good Hope to reduce safety risks. Drewry’s January report pointed out that once the Red Sea route is restored, shipping companies may accelerate the elimination of old ships to adapt to normal market demand.
Yang Ming stated that in order to accelerate its regional route strategy, deepen its presence in emerging markets and improve its global service network, the company is pushing ahead with its fleet optimization plan and will order up to 13 container ships. This new vessel program, announced as early as December 2024, includes up to six 8,000 TEU dual-fuel reserved and up to seven 15,000 TEU-class LNG dual-fuel container ships.
According to the latest data from Alphaliner, Yang Ming ranks 10th among the top 100 global liner companies in terms of capacity, operating 98 ships, including 59 owned ships, with a total container capacity of 711,000 TEUs. Yang Ming currently holds a contract for five 15,000 TEU new shipbuildings, which were ordered from HD Hyundai Heavy Industries in May 2023 and will begin delivery in 2026.