The nation’s three major container shippers reported falling revenue and profit in the first quarter of this year, as global political and economic headwinds, as well as inflationary pressures, affected transportation demand and freight rates, the companies’ regulatory filings released last week showed.
While their profits in the January to March period reached only about 5 percent of the levels seen during the same period a year earlier, Evergreen Marine Corp (長榮海運), the nation’s largest container shipping company in terms of fleet size, posted earnings per share of NT$2.38 in the quarter, better than its two domestic rivals’, and higher than those posted prior to the COVID-19 pandemic.
The demand for global shipping decreased in the first quarter amid the war in Ukraine, interest rate hikes by major central banks and industry inventory adjustments.
Photo: CNA
As a result, Evergreen’s revenue fell 60.88 percent year-on-year to NT$66.83 billion (US$2.17 billion) and net profit dropped 95.02 percent to NT$5.04 billion, the company reported on Friday.
The company’s gross margin fell to 22.15 percent, from 69.06 percent a year earlier, company data showed.
Evergreen’s financial results in the first quarter were better than in 2018 and 2019, and the company remains confident that its business performance would recover in the third quarter, Evergreen president Eric Hsieh (謝惠全) told investors last month.
Yang Ming Marine Transport Corp (陽明海運), the nation’s second-largest container shipping company, on Friday posted earnings per share of NT$0.97 for the first quarter, down from NT$17.35 a year earlier.
First-quarter revenue dropped 65.37 percent to NT$36.95 billion, and net profit plunged 94.38 percent to NT$3.4 billion, while gross margin fell to 9.25 percent from 70.58 percent a year earlier, the company said.
“The maritime transport market suffered delayed shipping and operational constraints in the first quarter due to the Lunar New Year holiday, factories adjusting shipping schedules and allocation of workers driven by market demand,” Yang Ming said in a statement.
There was a slight increase in the overall operation volume in the first quarter, as some industrial sectors gradually resumed business in March, Yang Ming said, adding that it expects its operational performance to gain traction in the second half of this year in light of inventory adjustments in global supply chains and traditional peak seasons.
Wan Hai Lines Ltd (萬海航運) posted net losses per share of NT$0.75 in the first quarter, staying in the red for the second quarter in a row, as net losses widened to NT$2.12 billion from NT$39.96 million three months earlier, the company reported on Wednesday. The company reported net profit of NT$40.63 billion a year earlier.
First-quarter revenue fell 68.25 percent year-on-year to NT$25.56 billion, while gross margin dropped to minus 7.06 percent from 64.16 percent a year earlier, company data showed.
Wan Hai said it has seen signs of market recovery this month, adding that it remains financially sound despite anticipated market challenges.
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