Yang Ming Marine Transport Corporation has revealed its Q2 consolidated revenues which are US$1.14 billion, up 1.12% from the same period in the previous year, however net loss for Q2 was $129.1 million.
The business volume of 1.29 million TEU rose 11.84% year-on-year.
Yang Ming’s consolidated revenues totalled $2.19 billion, up 1.81% compared with the same period in the previous year.
The first half 2018 business volume totalled 2.52 million TEU, climbing 10.28% from the same period in the previous year.
The net loss for the first half 2018 was $195.1 million.
Unexpected higher fuel prices drove up operating costs in the first half of 2018, said the Taiwanese liner.
Compared with the same period last year, the average fuel price in the first half year increased about 25%.
Additionally, the shipping industry still shows an oversupply in tonnage, and faces arduous and continued challenges in 2018.
Alphaliner recently forecasted the supply at 5.9% and demand at 4.6% in 2018.
Average freight rates in the first half year were about 10% lower compared with the same period last year.
Circumstances surrounding the global trade economy also present challenges and difficulties for the shipping industry.
However, since demand is expected to grow at 4.2% and with supply growth predicted at 3.7% in 2019, the economic forecast will be more optimistic, with the shipping industry to benefit.
Planning for the future, Yang Ming has approved the construction of ten 2,800 TEU containerships, equipped with advanced eco-friendly equipment which will comply with environmental regulations.
These vessels will be deployed in the Intra-Asia market.
In addition, there are five 14,000 TEU chartered vessels scheduled for delivery beginning in the fourth quarter of 2018 and accompany with ten 12,000 TEU chartered vessels will be delivered in 2020 and 2021.
Read more: Yang Ming Charters 10 New Green Ships