Yang Ming loss deepens in Q1

The Taiwanese ocean carrier did say its year-on-year growth in revenues and volumes was better than expected.    Yang Ming Marine Transport Corp. had a total comprehensive loss of 2.14 billion New Taiwan Dollars (U.S. $71.89 million loss) for the first quarter of 2018, much deeper than the first quarter 2017 total comprehensive loss of NTD 1.25 billion, its latest income statement revealed.
   Net loss after tax totaled NTD 1.95 billion, compared to a net loss after tax of NTD 901.45 million for last year’s first quarter.
   On a bright note, Yang Ming said its year-on-year growth in revenues and volumes was better than expected, with consolidated revenues for the quarter reaching NTD 31.03 billion, up 2.58 percent, and volumes totaling 1.22 million TEUs, up 9 percent.
   Yang Ming said its outlook for the 2018 container shipping industry remains conservative, with record levels of capacity expected to slightly exceed demand for the year, although it noted that an Alphaliner forecast projected demand will catch up with supply in 2019.
   On Thursday, Yang Ming said it signed a memorandum of understanding with five other enterprises — Taiwan International Ports Corp. Ltd.(TIPC), Tungya Transportation & Terminal Co. Ltd., Taiwan Navigation Co. Ltd., T.S. Lines Co. Ltd. and Chunghwa Post Co. Ltd. — to establish a joint venture holding company.
   The joint venture holding company will be located in Singapore and is expected to become operational by the end of the year.
   “The MoU is expected to set a framework of creating a mutually beneficial cooperation platform between the six companies and seize overseas investment opportunities by using their respective expertise, exchanging experiences and sharing resources for the supply chain integration in shipping and logistics,” Yang Ming said. “Through the collaboration, Yang Ming will seek to optimize its cost structure, strengthen competitiveness and expand global business.”
   BlueWater Reporting’s Carrier Ranking Report shows Yang Ming is currently the world’s ninth-largest ocean carrier in terms of operating fleet capacity, which stands at 617,178 TEUs.
   Yang Ming currently is a member of THE Alliance, which also includes Hapag-Lloyd of Germany as well as the Ocean Network Express, a container shipping joint venture between “K” Line, NYK and MOL.