News Highlights week: 15 - 2024

Revenues for Taiwan’s leading carriers have jumped 25-30% in the first two months of the year, further underlining the probability of stronger financials in Q1 for many carriers. 

Evergreen Marine reported combined January-February earnings of TWD 44.9 bn (USD 1.4 b), up 30% year-on-year and 25% higher than the final two months of 2023. 

Likewise, Yang Ming reported a 17% increase on a year ago, and a 30% bump on the previous two months, at TWD 24.0 bn. 
March revenue figures are not yet out but the SCFI averaged 2010 points in the whole of Q1 versus 1089 in Q4. 

Announcing poor Q4 results last month, carriers said results would be better in Q1 but warned 2024 profits would be front-loaded in the first half of the year.

Wan Hai Lines, which has struggled more than its compatriots, and posted operating losses in each of the four quarters of 2023, saw a smaller revenue boost in Jan-Feb of 8% year-on-year, and 7% versus November and December.

Big newbuilding program sees ZIM overtake Yang Ming 

A massive newbuilding program and a string of recent vessel deliveries has pushed the operated fleet of Haifa-based ZIM bast that of Taiwan’s Yang Ming.

With a fleet capacity of 707.332 teu, ZIM now claims the ninth rank among the world’s container shipping lines. As per 9 April, the carrier’s fleets were a mere 314 teu apart in terms of overall capacity. 

ZIM currently operates 131 ships, while Yang Ming deploys 94. 

Structurally, the carrier’s fleets very much differ since ZIM chartered 95% (122 ships) of its capacity, while Yang Ming balances chartering (59% / 38 ships) and ownership (41% / 56 ships). 

The most striking difference between the two is Yang Ming’s restraint over the past few years, while ZIM has embarked on a massive fleet expansion scheme. From a low point of 271,00 teu in April 2020, the carrier doubled capacity in just three years until April 2023.

ZIM’s newbuilding program included ten LNG-powered 15,000 teu vessels from Seaspan (‘Sammy Ofer’ class: 2023-2024), 15 LNG powered 7800 teu vessels from Seaspan (‘Gemstone’ class: 2023 - 2024 - 5 delivered so far), eight 5,200 teu ships from Navios (‘Bird’ class: 2023 - 2024 - 2 delivered so far), five 5,500 teu ships from MPC and related interests (River class: 2023 - 2024 - two delivered so far), and three LNG-powered 7,900 teu ships (‘Aries’ class: 2024 - 2 delivered so far). 

Apart from these, ZIM also took on four 12,000 teu newsbuildings from Seaspan (2 ships) and RCL (2 ships).

MKT Team